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America's Debt Crisis Lot Worse Than Reported / $48 Trillion

mwhodges.home.att.net — Last year total debt increased $3.9 Trillion, 5 times more than GDP. External debt owed foreign interests increased $1 Trillion; Household, business and financial sector debt soared 9%. 72% ($35 trillion) of total debt was created since 1990, a period primarily driven by debt instead of by productive activity.

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  • VikingoTJ, on 03/01/2008, -6/+116The crash is going to be hard.
    • floatingorb, on 03/01/2008, -16/+11Perhaps; But the verichip is gonna hurt.
      http://www.wethepeoplewillnotbechipped.com/phpfusi ...
      • bingobongony, on 03/01/2008, -21/+12ere is why you will NEVEr be taken seriously, ever in your entire worthless life...NO ONE...not one single person in any government has EVER said anything even remotely suggesting that people are going to be forced to have chips implanted. Not one.

        But little bitches (and yes...that is clearly what you are) just say "They are going to!" and think that that is the only proof you have.

        When you dod htat, you lose all credibility. Forever.
        • VikingoTJ, on 03/01/2008, -8/+9It is already being proposed in China Mr. Bingo Boner!
          • bingobongony, on 03/01/2008, -14/+7Do you live in China? Kind of a big difference between China and the rest of the world. What with being the last real hold out to Communism and all.
          • VikingoTJ, on 03/01/2008, -5/+14Its not really the last hold out to Communism. Its in Venezuela, Bolivia, Belarus, many African nations, and Laos. We also have the Patriot Act here in the USA, which was a stepping stone on the road to totalitarianism.
          • PeppermintPig, on 03/01/2008, -1/+8I'll just say this: Governments like to borrow the bad ideas of other governments.
          • dudeguy1234, on 03/01/2008, -0/+9Hey bingo boner... why the ***** do you think that's communism? So a group of leaders holding all the power over the population is communism? That's oligarchy, *****.
        • floatingorb, on 03/01/2008, -6/+11"...has EVER said anything even remotely suggesting that people are going to be forced to have chips implanted."

          It depends on where you work, for now; But YOU are going to BEG for it to run your VR goggles, have doors open for you at the bar, walk out of the grocery with FOOD, and get medical care.

          Enjoy the hundred year old Tesla tech "wi-tricity" that you will soon have in you're home to make sure the thing stays active 24/7. And enjoy that I may then consider "stealing your identity" from 300 feet away when it becomes 'necessary'.
          • bitcloud, on 03/02/2008, -0/+5Yeah it's a little like how decades ago people believed they'd never succumb to:

            1) Having everyone assigned a unique idenfication number (social security number)
            2) Carry a tracking/ device (mobile phone)
            3) Carrying a bug (mobile phone - able to be bugged remotely even if turned off)
            4) Agreeing to wiretapping and datamining (AT&T & the NSA)

            funny how a bit of time and added convenience convinces people to create fertile grounds for fascism...
          • LeeSoong, on 03/05/2008, -0/+1Actually, the software company and chip making company continually lobbies the U.S. Federal government to pass the law requiring chips in everyone.

            The Billions of dollars in software sales, combined with the 1 person = 1 more sale Billions $$$$$$ is a stinking pile of graft just waiting for a swiss bank account, and a few sell out government officials intent on scoring the biggest kick-back scam in the history of the USA.

            The people might resist - they are terrorists.
        • floatingorb, on 03/01/2008, -2/+6Oh. You were being sarcastic? Crap, you got me (good one). It's just I run into it all the time here: "HA! you said 'affect' when you meant 'effect', the whole world knows you're a liar now!"--Oh the chagrin. I'm guilty of a 'keejerk posting'.
        • Awspire, on 03/01/2008, -0/+7You own a cell phone? If so, guess what, your probably chipped with convenient surveillance options such as satellite tracking and remote mic activation.
          • floatingorb, on 03/02/2008, -2/+4Ahh, so true. No "probably" about it. But, one is not 'personally chipped' with it unless the phone is stored in the rectum.
      • cyberdork, on 03/01/2008, -16/+6floatingorb sounds like a Ron Paul supporter. Let me check his profile.... yep, right on the money.
        • bitcloud, on 03/02/2008, -0/+3troll
          • floatingorb, on 03/03/2008, -0/+1"Funny how a bit of time and added convenience convinces people to create fertile grounds for fascism.."
            'Spot on.' It's the "frog in the (slow to be) boiling water" analogy.
            p.s. I hope you didn't dig cyberphallus down, I am a proud RP supporter.
    • Mustard911, on 03/01/2008, -12/+9Who do you blame, the people with credit cards and home loans or the Israeli's running the American Government.
      • Lavar, on 03/01/2008, -4/+6I blame you.
      • kazamx, on 03/01/2008, -1/+7Good question. While everyone likes to blame someone else, in fact we can only look in a mirror to see who to blame.

        While all those other people/groups did help ***** things up, only you got yourself in this mess. if you saved. invested and only spent what you could afford, you would still be in a strong position today.
        • floatingorb, on 03/02/2008, -2/+2Yea!...woopie!!...W00t!!...I Saved!!! Now I can afford 4 more wars!!! (or is it years?)
      • RationalXubrnce, on 03/02/2008, -0/+4 You blame the shareholders of the Federal Reserve. Many are Jewish, some are not but to call them Israelis is inaccurate.
        • SC4RP, on 03/02/2008, -0/+0To call then human would be inaccurate too.
    • BassMastr, on 03/01/2008, -6/+7The rumors of our demise are greatly exaggerated...
      • BassMastr, on 03/01/2008, -3/+6Ok people think about it, there is no way we have a debt equal to the world GDP.

        http://en.wikipedia.org/wiki/List_of_countries_by_ ...

        That's cool if you'd rather digg me down and believe the hype.
      • joviko, on 03/01/2008, -1/+2Yeah, yeah, it is possible. The largest single economy in the world is massively upside down, just like many American households. A lot of that debt is internal federal debt owed to us taxpayers, and I don't think anyone expects it to get paid back. The rest is far smaller than the world GDP. I'm not going to digg you down, just call you on your sloppy thinking.
      • BassMastr, on 03/02/2008, -1/+3I guess we'll see mid year when then econ starts turning around...
      • joviko, on 03/02/2008, -0/+6OK, BM, before you get all flamed up, here's why:

        GDP != total value of assets. GDP = total value of all goods and services produced in one year.

        Plus, US GDP is likely overvalued due to outsourcing corporations counting some of the product created by their offshore divisions. That's from a relatively honest country that follows something that approximates generally accepted accounting practices, sort of. What's the actual GDP of China? Who knows?

        A simple and common example of how debt can easily outstrip GDP. Let's take a typical American domestic household. Two wage-earners, bringing in $100,000 per year total. A house bought one year ago for $300,000 on a 20 year fixed mortgage at 5% interest, a relative bargain. A $25,000 car bought last week at "0%" interest. $5000 on various credit cards.

        The house has a current fair market value of $275,000, thanks to the depressed real estate market. The car is worth $20,000, since it is considered "used" the moment it leaves the dealer's car lot. Total assets are $275,000 + $20,000 = $295,000. Throw in another $50,000 in savings, IRAs, and pension plans if you like.

        The debt on the house is at least $290,000 remaining principal, assuming that the family has managed to pay off a very optimistic $10,000 of principal. It could be a lot higher, depending on the terms of the loan; the family may still owe all of the remaining interest on the loan, somewhere in the range of $165,000, even if they win the lottery and pay off the loan today. The "0%" car loan is still for $25,000. Total debt = $290,000 + $25,000 + $5,000 = $320,000. At least. Maybe a lot more.

        GDP of the household = $100,000. It doesn't include the value of the house or car, just the goods and services produced by the wage-earners (which is equivalent to their combined wages).

        Total debt is at least 3.2 times GDP. This is for a typical American family that is in good financial shape and who follows open and transparent accounting procedures.
      • ricorodriguez, on 03/02/2008, -2/+3don't bother being reasonable on digg.com
    • vertinox, on 03/01/2008, -0/+4Well, its not as you imagine. If you have debt, it will be made a moot point by inflation... The downside will be so will your savings and income unless you get a raise to match the inflation index.
    • Locke2053, on 03/01/2008, -0/+5I wouldn't put much stock in any economic analysis that feels the need to mention "family values."
    • BlueStarr, on 03/01/2008, -2/+5Exactly what Ron Paul stated in an interview. The rest of the dept hasn't yet been called in so the 9 trillion isn't the total amount.
    • Omano, on 03/01/2008, -1/+3More tax cuts ;)
    • 55mph, on 03/02/2008, -1/+3It's a set up. The power behind the throne wants the US in a depression. The plan is to reduce the average american's standard of living. Then, at the height of our pain and frustration, introduce the Amero, a new currency that represents Canada, the US and Mexico. The Fed will be in charge of the currency for a continent instead of just a country.

      The only way to protect yourself is to buy anything gold and silver.
    • Myztry, on 03/02/2008, -0/+2No is the time for non-American's to start filling their piggy banks so they can buy some American real estate.
      Somehow I don't think the majority of Digg users are going to find the truth element of the joke funny at all...
    • Khannea, on 03/02/2008, -0/+1Well, at least the US has had firm, competent, accountable leadership the last 7 years.
  • kahakauai, on 03/01/2008, -35/+82Oh yeah... right on! Thanks Bush!!! You ***** *****...
    • VikingoTJ, on 03/01/2008, -12/+66I agree that Bush is an *****, but this started really accelerating in 1990. Bush did help make it worse though.
      • overtoke, on 03/01/2008, -8/+3Look at the graph, fool.
      • ElAssoWipo, on 03/01/2008, -3/+23Bush was president in 1990.
      • jhshukla, on 03/02/2008, -0/+2to me it appears to be kicking in around 1981.
      • rhedwolf, on 03/02/2008, -1/+2Yep, it looks like it started in 1981 with Reagan. And we haven't learned anything since then.
    • BassMastr, on 03/01/2008, -6/+31While the govt is responsible for the govt share of the debt. Alot of the debt is from house holds and businesses. People need to quit spending money they don't have and quit blaming other people for their problems and learn personal responsibility. If they tried to impose limits on credit etc than everyone would complain about personal freedom. There is a certain amount of responsibility/common sense that comes with personal freedom that needs to used. (i.e. don't buy houses you can't afford...don't buy things you don't have the money to pay for...save a little money for times of trouble.)

      It shows that you didn't read the article or understand the issue if you think one person or party is to blame.
      • twomeyw23334, on 03/01/2008, -3/+10I thought we could blame Bush for everything?
        • dudeguy1234, on 03/01/2008, -3/+6We can
        • BassMastr, on 03/01/2008, -3/+10Yeah you can...it just shows you have no idea what you're talking about in this case if you do.
          • joviko, on 03/01/2008, -3/+0Wow, two dumb posts, way to go. We can blame The Filibuster for kicking the supports out from under every significant type of federal oversight and regulation of predatory lenders (aka usurers). We can blame him for doing it, sometimes in secret all on his own, sometimes with the help of a lapdog Congress. Things like firing consumer-friendly directors and freezing the funding of their replacements. Things like putting spineless yes-men into critical federal posts like head of the Treasury. We can blame that slimeball for a lot of bad things, because he's worked very hard to make them a lot worse in a very short period of time.

            And we can blame the fuzzbrains who were stupid enough to be gulled by that charletan and who still claim that he has no responsibility for this country's current mess.

            I'd agree with you if the Filibuster weren't so proactive about all of this. But with things the way they are, shame on you for even suggesting that he should be let off the hook.
          • BassMastr, on 03/02/2008, -0/+3Wow you should really think about getting some help... You're obsessing. Nobody forced anyone to buy a house they couldn't afford. No forced anyone to max out their credit card and get another one and then do the same. You blame other people for your problems. i blame myself for mine. I believe in less govt and more personal responsibility and you obviously believe in help from big brother and govt oversight so that you don't hurt yourself or do something stupid to you or your family's future. I don't ask the govt to make sure I have healthcare or to protect me. I am doing great finanically b/c I didn't make stupid decisions with my money or credit. People like me who assume personal responsibility are doing just fine during these troubling times and will continue to do so in the future. People like yourself who look to others to take care of them, protect them, and provide for them will continue to be disgruntled and on the outside looking in. I think you'd love France...
            Again, If you think one person or party is to blame for this issue then you either didn't read the article or understand the situation.
    • Jeffmr1, on 03/01/2008, -0/+7Don't forget the people responsible for passing the budget
      • nihilite, on 03/01/2008, -1/+1note: we use the word "responsible" very loosely here. there is nothing responsible about how the US govt spends money.
    • zmigliozzi, on 03/01/2008, -4/+11You want to elaborate on that? How does Bush cause the ridiculous amount of debt nationally on car loans? People are irresponsible spenders. It's easy to blame someone else, it's harder to blame yourself.
    • pinchduck, on 03/01/2008, -3/+12Bush made you max out your credit card? Those damned White House Mind Control Beams (sponsored by Visa(tm))!!!!
      Yes, Bush is a crappy president. The article times the acceleration of the crises from 1990,however, and factors in household debt. Furthermore, revenue bills originate in Congress, not the Executive branch, so you have all those free spending representatives to thank, as well.
    • Khannea, on 03/02/2008, -0/+1Bush more or less instructed Greenspan and consorte to lower interest rates to below silly rates after 9/11. Since then the dollar printing presses have been steaming red hot.
    • logic07, on 03/03/2008, -0/+1I know! We need change. MORE taxes. please vote bama.
  • rlbond86, on 03/01/2008, -26/+42This website doesn't cite reliable sources. Plus it's a home.att.net site. Please post something accurate.
    • VikingoTJ, on 03/01/2008, -4/+10The confiable sources are cited here: http://mwhodges.home.att.net/nat-debt/debt-nat-a.h ... .
    • Future2, on 03/01/2008, -0/+6Here's a good source for all economic data: http://research.stlouisfed.org/fred2/series/CMDEBT
    • bdbr, on 03/01/2008, -2/+3..and this sentence just wreaks of bias: "72% ($35 trillion) of total debt was created since 1990, a period primarily driven by debt instead of by productive activity."

      There are plenty of other articles complaining about how American corporations are creating more CO2 than any place on the planet, yet this guy thinks the economy is "primarily driven by debt instead of by productive activity." Where does he think all that CO2 comes from...accountants breathing really hard?
      • kazamx, on 03/01/2008, -1/+3You seem a little lost. He is talking about growth. Growth was claimed to be coming from American workers becoming more productive, The idea was they produced more goods for less money, this meant companies made more profit and invested that back into the economy in dividends, increased pay and Research and Development.

        We have now realised that while some growth was from increased productivity, most of it was from the Chinese making goods cheaper, and from American consumers taking on more debt. this results in more money leaving America and people having to spend more on intrest to pay off loans. While in the short term this makes the economy look good (increased sales) in the long term its BAD, very bad.
    • dillibob, on 03/02/2008, -0/+1it also says updated in march 2007, sounds recent to me
  • VikingoTJ, on 03/01/2008, -4/+20Solid sources for this report are listed on this page: http://mwhodges.home.att.net/nat-debt/debt-nat-a.h ...
  • Look4Truth, on 03/01/2008, -4/+68You mean...the government lies to us?! *shocked*
    • thcobbs, on 03/01/2008, -5/+1In case you didn't take the time to actually look at the graph in detail....

      This is a graph comparing TOTAL US DEBT (Government (all levels), businesses, households, and investment sectors) compared to HOUSEHOLD INCOME. I'm sorry to burst everyone's bubble, but this graph is MISLEADING to put it LIGHTLY.

      In effect, you're comparing how much the US Taxpayer takes in to how much the ENTIRE NATION (remember boys and girls.... corporations are legal entities that earn money too) has in debt.
      • avasol, on 03/01/2008, -1/+4The state has other sources of revenue than taxes? What? They sell a bit of fish on the side? Parts of Texas? (That wouldn't be all bad actually).
        Enlighten us, smartass.
        • thcobbs, on 03/02/2008, -1/+2At least in my state, the 16th section of every Township is pubic land and is usually rented out.
          If your municipal power company produces more power than it uses, it can sell it to places like California.
          Some states actually invest tax income that exceeds their budget(go figure)
          License fees for professional jobs like Engineer, Doctors, Teachers.
          Interest Rates on Loans to other states/private businesses

          Should I go on?
  • recession, on 03/01/2008, -3/+14http://recession.org for more information
  • reed311, on 03/01/2008, -45/+15Buried as Ron Paul forum spam.

    These guys get off on posting links about the economy failing. They foolishly believe that Ron Paul would some how magically save the economy. They also believe that the economy won't rebound, which is false.

    You guys predicted Ron Paul would easily win the election, among many other things. You have lost all political credibility with such wildly inaccurate and irresponsible predictions.
    • VikingoTJ, on 03/01/2008, -7/+40Ron Paul spam? This isn't Ron Paul spam. This is the ugly truth that must be dealt with one way or another.
    • erkokite, on 03/01/2008, -1/+14I have yet to seen any mention of Ron Paul yet. The vast US national debt is a fact- it can be looked up anywhere.
    • rexblade, on 03/01/2008, -1/+8Just because what Ron Paul said was true doesnt make it any less unimportant you idiot.
    • GhostyBoy, on 03/01/2008, -1/+7I thought the Paulites were the ones who interjected his name in at random times. Oh, and reed311, thanks for reminding me that Ron Paul was right again.
    • kyleain, on 03/02/2008, -0/+3do you know what a loser is? how about a self-important troll?
  • jasqwerty, on 03/01/2008, -32/+10Not only are you trying to manipulate the digg system, which you were ALREADY BANNED FOR AT LEAST ONCE, http://www.ronpaulforums.com/showthread.php?t=1252 ... you are reposting crap numerous times yet again, WHICH AGAIN YOU WERE ALREADY BANNED FOR...

    http://digg.com/business_finance/Total_US_Debt_BIG ...
    • GhostyBoy, on 03/01/2008, -2/+5Hahaha...so what an article about how ***** the economy is and all the Paul haters come crawling out of the woodwork to say it's spam just because he was the candidate that warned us about it?

      You guys are weak.
    • jasqwerty, on 03/01/2008, -5/+2LOL, ***** math is *****...

      Yes, let's sum total every single possible thing that can be classified even remotely as debt without pondering the cross correlations and implications and get a stupidly unrealistic and meaningless number.

      Let's say you have 3 friends, call them A,B, and C. On Monday, person A & B go out to lunch, B covers the bill, and A is in debt to B for $5. On Tuesday, person B & C go out to lunch, C covers the bill, and B is in debt to C for $5. Then on Wednesday, person C & A go out to lunch, a covers the bill, and C is in debt to A for $5.

      Using the above example, and this ***** math, these three individuals are $15 in debt. Using reasonable math and logic, there is no debt here.

      LOL @ rontard scaremongering, go back to crying in your corner losers.
      http://www.ronpaulforums.com/showthread.php?t=1248 ...
      • VikingoTJ, on 03/02/2008, -1/+2Uh no *****. County A passes a bond referendum and goes A dollars into debt. The federal government runs a deficit of B dollars and finances it with debt. The state government runs a deficit and incurs C dollars of debt. Person X has a credit card debt of D dollars.

        Total debt in this case = A + B + C + D Each entity gets itself into hock, and that puts a strain on the total economy. Its not like a group of friends that take turns buying lunch.
      • VikingoTJ, on 03/02/2008, -1/+2Jasqwerty,

        LOL Yes I understand what you are saying about how money flows through the economy, but debt loads on all levels have increased constantly and at a rapid pace over the last couple of decades. It would only take a retard such as yourself to ignore the fact that a growing debt bubble has to eventually collapse....just like what happened with the housing market.

        THAT is the cyclical nature of out of control debt. And yes, that debt is owed to a large variety of entities, but that doesn't make it a positive thing either.

        Take a look at what happen to Mexico's cyclic and circular debt. :) So people, if you are a dumbass...Listen to Jasqwerty and believe that a large debt load owed to various entities is never a bad thing.
    • VikingoTJ, on 03/02/2008, -1/+2I have never been banned from Digg. BTW This is a separate write up on the same site. I notice that you don't submit anything hardly, and you go around making negative comments on Digg.
    • VikingoTJ, on 03/02/2008, -1/+2By the way I just investigated the link to this Digg submission that was posted in the Economics and Sound Money subforum. That only has about 5 people viewing at a time, and most forum viewers aren't diggers. Get your head out of your ass Jasqwerty.
    • kyleain, on 03/02/2008, -1/+2do you know what a loser is? how about a self-important troll?
  • coffee200am, on 03/01/2008, -23/+5Who's Ron Paul???
    • dudeguy1234, on 03/01/2008, -5/+3lol.
    • kyleain, on 03/02/2008, -0/+3Someone that isn't hated by God and who might help judge you one day.
  • avengingturnip, on 03/01/2008, -8/+29...and people are worried about global warming.
    • allahuakbar, on 03/01/2008, -6/+3If this is true I need to get the hell out of here to a more libertarian country - any ideas???
      • dudeguy1234, on 03/01/2008, -7/+3Canada's for pussies, I suggest Britain... watch one of their Governments debates, its refreshing to see truthfulness
      • AngelBunny, on 03/01/2008, -0/+4in the general area of Sweden has a lot of liberal and peaceful countries but english isn't the main language and it is kind of cold.
        • avasol, on 03/01/2008, -0/+6Please don't suggest Sweden. We don't want dumb ***** with lots of money coming after our beautiful but limited supply of women.
    • DifferentAngle, on 03/01/2008, -6/+5Maybe I have a tinfoil hat, but it has always seemed like Global Warming is meant to distract the public from real issues (including more significant environmental issues).
      • vertinox, on 03/01/2008, -2/+4If that were the case, wouldn't you imagine GWB would be arm waving yelling "Think of that them there eskimos!!!"
      • AngelBunny, on 03/01/2008, -3/+2I've thought that too but I don't think it is true.
      • GhostyBoy, on 03/01/2008, -1/+4Hard to say. It would help a lot if there wasn't so much bunk science for profit floating around.
      • DifferentAngle, on 03/02/2008, -0/+2All I know is that the dead zone in the gulf of mexico is more than 7k square miles due to fertilizer overuse, which is known problem with a known solution, and we spend all of our time on Digg talking about a potential problem with an unknown solution.
    • vertinox, on 03/01/2008, -3/+11Eh. A recession we can live through... A complete meltdown of Greenland and Antartican ice... Not so much.
    • Berkana, on 03/01/2008, -0/+6Believe it or not, the "debt engine" is actually one of the major driving factors behind resource depletion and environmental destruction, including the accelerating use of fossil fuels. Watch this through to understand why:
      http://digg.com/business_finance/Our_Debt_based_Mo ...
  • comorg, on 03/01/2008, -16/+4hahaha sympathy for the guilty? After recent events, say the last 10 years or maybe the last 100, maybe longer American deserves all it gets.
    • atbnet, on 03/01/2008, -2/+8Maybe you should thank us you aren't speaking German you ungrateful ***** sucker.
  • TomK88, on 03/01/2008, -23/+5Debt is not necessarily a bad thing. Is having a mortgage a bad thing? No. Is borrowing money and earning a rate of return higher than the interest rate on the loan a bad thing? No.

    This article basically is doomsday speak. I would pass it off as just more Ron Paul spam finding it's way onto Digg. I'm not saying there isn't a debt problem in the USA, I'm just saying it's not as bad as many will lead you to believe.
    • avengingturnip, on 03/01/2008, -2/+17You do realize that debt has to be paid off, don't you?
    • dildoolielly, on 03/01/2008, -3/+10Where do you get the authority to speak?

      Lemme guess, out of your ass?
    • TomK88, on 03/01/2008, -5/+5Brilliant counter-arguments. :)
      • rockdawg, on 03/01/2008, -0/+4How about this the value of the USD as unstable in all world news sources. It's a scary recession to be sure but I understand. Debt is always a bad thing unless you are able to fully pay your way out of it.
    • PeppermintPig, on 03/01/2008, -1/+5Debt is liability. It's inherently a bad thing. You have to hope your assets are more sound than the liabilities that either simply exist, or the ones you choose to take on. The Fed counts more as a liability that simply exists, because of the broad sweeping influence on the value of money.
    • frogman54, on 03/01/2008, -1/+7You're right, debt isn't always a bad thing. 48 trillion dollars worth of debt is a bad thing.
    • GhostyBoy, on 03/01/2008, -0/+11Debt is slavery dude. I've been in finance my whole life and if I only learned one thing, it is that debt is slavery.
  • VacaN, on 03/01/2008, -25/+4Blame it on the dirty libs..
    • erkokite, on 03/01/2008, -2/+7Or Reagan and the Bushes.
    • loopist, on 03/01/2008, -2/+3And when Obama gets elected and enacts all his billions in social programs we can thank him for doubling it yet again...idiots.
  • holzp, on 03/01/2008, -15/+25For those of you that do not understand how the money supply is creating the next depression: http://www.youtube.com/watch?v=eBGIQ7ZuuiU
    It will be worse than 1929!
    • thoughtudied999, on 03/01/2008, -6/+1Just when I thought the meme was over.
    • dcbebop, on 03/01/2008, -0/+5I've pondered on this, and am no economist, but I think it'll be different because of one main factor: credit/debit cards. Cash currency isn't used 100% like it was in 1929. The main cause of the crash (well main was the fact that they were lending based on fabricated funds, much like today) was the fact that everyone tried to pull their money out at once.
      The difference this time around is that credit and debit cards are used a lot more, thus allowing the fabricated funds to remain at the banks and not in currency.
    • Tenlow, on 03/01/2008, -1/+3Well played my good man, well played.
    • nbrntrt, on 03/01/2008, -4/+2I got rick rolled!
    • Berkana, on 03/01/2008, -3/+1Damn you!
    • ianmorris, on 03/02/2008, -3/+1being rickrolled is still better then being made to watch gold standard videos
  • dildoolielly, on 03/01/2008, -10/+31Thanks Bush voters

    We won't forget you

    I promise
    • michael4lsu, on 03/01/2008, -5/+17You're an idiot if you think this whole Master Plan is limited to Bush. It's been going on for decades. Bush is just a puppet. They have puppets in both the Republican and Democrat parties. Don't make the mistake of believing that the Democrats are the solution.
      • dship, on 03/01/2008, -5/+8Well, Clinton did do that whole completely turn around the national deficit into a nice little surplus. Bush kind of screwed that one up.
        • miket, on 03/01/2008, -0/+4How nice of him! Too bad he didnt really, that money just came out of something else.
          • dship, on 03/02/2008, -1/+2Actually he taxed the ***** out of the rich. But you kind of have to I guess.
        • warnergt, on 03/02/2008, -1/+4Clinton never had a surplus. It's a myth. The federal debt went up every single year of the Clinton administration.
        • cquinnd, on 03/02/2008, -0/+1Then what did Bush create those tax cuts from in his first year of office? Was the whole congress in on the myth?
      • bwa236, on 03/01/2008, -0/+2Republicans not the solution. OK. Democrats not the solution. OK. Who then? Nader? Paul? National Socialist party?
        Facts: The national debt has gone up incredibly in the course of a single two-term presidency. We spend money (billions) overseas and say domestic agendas are "too expensive" and refuse to fund or veto them. Please list a democratic president who acted this way. I would like to be enlightened.
        I can't stand it when people who make statements trying to sound intellectual about a problem facing the world or country and don't offer a possible solution. It's passive and fatalistic taking the stance that no one can solve anything. Next time just don't say anything.
        • grgt1994, on 03/02/2008, -0/+1WE are the solution. Politicians respond to US (when we bother to speak on an issue). Since WE have been too lazy - and frankly self interested - the politicians do what makes the most sense for them, namely spend like drunken sailors on 12 hour shore leave. Problem is, they're spending OUR money to buy favors to keep themselves in power.
      • DividedYouFall, on 03/02/2008, -1/+1If you are seriously making a reference to some sort of NWA - you are an idiot... there is no New World Order - if you arent referring to that - dont make up a vague reference to "they" because using that logic - "they" also say that everyone with an account named michael4lsu is an idiot
      • dildoolielly, on 03/02/2008, -0/+4--------"You're an idiot if you think this whole Master Plan is limited to Bush. It's been going on for decades. Bush is just a puppet."--------------

        GW Bush Jr has already bankrupted - Arbusto Energy Corp.
        GW Bush Jr has already bankrupted - Spectrum 7 Corp.
        GW Bush Jr has already bankrupted - Bush Exploration Company
        GW Bush Jr has already bankrupted - Harken Energy Corp.

        Consider the above pattern to complete the following sentence:
        GW Bush Jr will soon __________ the United States of America.

        With a track record like that, anyone that would re-elect Bush would have to be a complete Retard! Who in Bazzaro land would re-elect this nutcase?!!

        I'm sure all you Neo-the-Candyass-Clown-Os can thank FOX "news" for making you the stupidest motherfukers on the planet!!!!!
    • jasqwerty, on 03/01/2008, -7/+6Blame liberals if anyone *****. It's not republicans that are sinking 60% of our tax revenue into useless socialism.
      • KazamaSmokers, on 03/02/2008, -2/+6yeah, because corporate welfare and insane military-industrial spanding isn't an issue at all.

        Clueless.
        • warnergt, on 03/02/2008, -1/+2You mean like the corporate welfare we provide for the Corporation for Public Broadcasting?
        • grgt1994, on 03/02/2008, -1/+1Corporate welfare? If our policymakers had a working neuron we wouldn't have a single dime of tax liability imposed on business.
      • VikingoTJ, on 03/02/2008, -1/+4Then why do you ***** on Ron Paul all of the time? He is the only candidate that has proposed cutting ANYTHING SUBSTANTIAL. Jasqwerty is just a troll with no principles.
      • VikingoTJ, on 03/02/2008, -0/+4That sounds funny coming out of the ***** hole of somebody who likes to troll Ron Paul supporters. Isn't RP the only candidate that has proposed cutting back a lot of the excessive welfare state and devolving relief functions back to the states?

        Oh thats right! Digg trolls have no principles.
      • dildoolielly, on 03/02/2008, -1/+2-----------"Blame liberals if anyone *****. It's not republicans that are sinking 60% of our tax revenue into useless socialism."-----------------

        Wow you conservatives are so persecuted aren't you?! You're just the weak little kids cowering at the feet of the big bad liberals from the way you talk. But you know what? You have had the majority of the political power in the country for the last 8 FVCKING years so I think, wait...yes that's correct, you are todays grand prize winners of a lifetime supply of "Shut The ***** Up!" It goes great with pork and and hot air!
  • chumscrubber, on 03/01/2008, -4/+2Holy hockey stick Batman !!!
  • UltramegaOK, on 03/01/2008, -4/+8*****
  • whatthefu, on 03/01/2008, -5/+31This site doesn't look like it's been updated since 1997.
    • dafragsta, on 03/01/2008, -1/+1Nice little animated GIF dog with the telltale blue border around it for the mailto.
    • lhbaker, on 03/02/2008, -1/+2This site requires Netscape 1.1 or newer
  • krnldmp, on 03/01/2008, -2/+6Meanwhile US economists are still getting away with explaining to people "No, no. Debt is when you HAVE money."
    • PeppermintPig, on 03/01/2008, -1/+4And they would be correct: FRN's are debt. But they'd be wholly wrong for supporting this immoral system.
    • Berkana, on 03/01/2008, -0/+6When ALL THE MONEY you have in circulation is borrowed, you only have money when someone is in debt. The problem is, when all the money is borrowed, it always needs to be paid back with interest, and the interest money isn't in the system, since the only money out there is borrowed principal. In order to pay off the interest, more people have to go into debt, effectively borrowing the quantity of money that would be used to pay off prior interest, thereby increasing total debt, in a cycle that results in debt that can never be paid off.

      THAT is why we need monetary reform. We have no permanent money; when all your money is owned by the banks, you economy is utterly dependent on interest rates.

      See this too learn the background on this: http://digg.com/business_finance/Our_Debt_based_Mo ...
  • CardHockman, on 03/01/2008, -8/+0hahaha what's next, blackboxvoting.org?
  • fLUx1337, on 03/01/2008, -1/+1Donno whats to say, truely hope these US money problems won't cause too many problems now a days to you guys, as it has in the past...

    The UK may not be the best place to live, but with 17.5% VAT on every ***** thing (and more on other things!!), its harder to get in big debts...
    • spudnic, on 03/01/2008, -0/+4I'd be supprised if we actually payed much more tax over here in the UK once everything is totaled together, 17.5% does sound like a high sales tax, but consider that Americans (correct me if I'm wrong here) pay a state as well as a federal income tax, and have either medical bills or medical insurance to worry about and I don't really think we have it much worse off.

      Plus they have that irritating thing of not adding sales tax till you get to the till, that drives me mad when I visit America.
    • Phate8263, on 03/01/2008, -0/+3For 2007, Single filing status 7000-32000 = 15%. 32000-77000 25%
      Plus 9% for Montana state tax.. plus 6.5% for Social security + 1.45 % for medicare

      I end up paying somewhere around 30% of my income in taxes, yeah the US is *****.
    • EntangledPhysx, on 03/01/2008, -1/+1Not to mention how much the US govt makes from taxing the piss out of the oil companies. I am amazed we are even in debt, the US govt has money coming in hand over fist!
  • Dextrose, on 03/01/2008, -5/+13The ENTIRE world GDP is approximately (give or take) $48 Trillion (please look it up for confirmation). With that being said, how in the world could the US's debt be equal to that? That makes absolutely zero sense.
    • dship, on 03/01/2008, -0/+4http://siteresources.worldbank.org/DATASTATISTICS/ ...

      Estimates world GDP right at $48 trillion.
    • dudeguy1234, on 03/01/2008, -2/+4Because the war in Iraq among other things are ***** squeezing every last dollar out of people, so the government has to borrow over time. The GDP is yearly, the debt has been piling for over a decade.
    • rolf, on 03/01/2008, -1/+2Future liabilities that are not accounted for (formula projected_future_revenue - projected_future_liabilities = $48 trillion). Much from medicare/medicaid and interest on debt.

      Part 1:
      http://www.youtube.com/watch?v=KIgrxpp97OQ
      Part 2:
      http://www.youtube.com/watch?v=DXr_Ga_n0pY
    • Jeffmr1, on 03/01/2008, -1/+3Ah, the miracle of being able to print as much money as you want...
    • Locke2053, on 03/01/2008, -1/+5If you make $50k/year, you can have a loan for $100k because you pay back $25k/year for four years.

      Same with GDP. Debt is a promise to give someone money in the future. How does that make "zero sense?"
    • kazamx, on 03/01/2008, -2/+2Its called the Money Multiplier effect. Let me explain. To keep things simple lets pretend the whole world is one country. This country has 1 bank and has a total of $100.

      I have $100 and pay it into the bank. The bank then loans $100 to someone else. That person keeps that money in his account. Now I have $100 and the other guy has $100. So if we now counted the total amount of money in the world it would be my $100 plus the other guys $100, so the world has $200.

      Now banks don't loan out only the money they have, they loan out up to 10 times the money they have. So when I put my original $100 in the bank they could have loaned out $1000 to someone else. In this case we add my $100 to the $1000 the other guy got and the money in the world is now $1100.

      Now I have $100 in the bank and the other guy has $1000 he is keeping in the bank. As the bank now has $1100 in savings it can loan out a total of $11,000 (10 times deposits). It has already loaned out $1000 so it can lend another $10,000. If it does that and loans $10,000 to a 3rd person (who keeps the money in his account) then the bank now has $100 from me, $1000 from the first guy and $10,000 from the 3rd guy. So now the world has a total of $11,100.

      You see, when working out the total amount of money in the economy, you don't minus debt. This is why No bank could pay back every penny it has deposited with it at the same time.
      • jhshukla, on 03/02/2008, -0/+1you just described the way US monetary system works. it does not explain the external debt.
        it's more like the entire world has, say $1 quadrillion. US borrows 48 trillion and wastes/loses it. entire world (US included) produces ~48 trillion every year (that's how the total got to 1 quadrillion). it's like 48 trillion is world income; the total wealth is much more than that. and the debt has been deducted to compute that net wealth.
    • jasqwerty, on 03/01/2008, -3/+3All of the above posters are retards. The debt is cyclic. That's how you can get debt values greater than the money supply. It's also why this site is *****.

      If only you and your friend exist in the economy, and you have $1 dollar, the only that exists, and you loan it to your friend, who at a later time loans it back to you, you're both in debt for a total of $2, with only $1 dollar existing, but when it comes to pay, your debts cyclically cancel. You pay off the same debt that you get your loans paid off with.
      • joviko, on 03/02/2008, -0/+4You're ignoring interest, O Wise One. Try your example with your friend at Citibank and see how it turns out. My prediction is that after remarkably few iterations, you'll owe them N + 1 dollars and they'll owe you N dollars; in other words, when your debts "cyclically cancel", you'll owe them your entire dollar and they'll owe you nothing. Throw in their typical processing and access fees, and the number of cycles will equal 1.
        Thanks for your illumination, though!
      • VikingoTJ, on 03/02/2008, -0/+2Except this debt isn't being "cancelled out". It continually accumulates in all sectors. I don't see the increasing consumer credit card debt being "cancelled" either.

        What you say is true on some levels, but most of this debt is pernicious, especially that held on the governmental level.
  • turdblossom1, on 03/01/2008, -6/+1we're ***** http://www.youtube.com/watch?v=rEOjttmqIrc
  • florin, on 03/01/2008, -6/+3I would read the article, if it was readable. People with no HTML skills (and no sense whatsoever for what looks good or not) should not post on the Internet.
    • lhbaker, on 03/02/2008, -0/+3From the looks of the site, this guy was 'posting on the Internet' before you knew what the Internet was.
  • Zlorp, on 03/01/2008, -2/+14you cant be in real debt when you dont use real money
  • christopherRB, on 03/01/2008, -5/+14and they want to give everyone healthcare....
    • Chaoticfist, on 03/01/2008, -3/+9And if they did not have military bases in the majority of the worlds nations, not involved in two wars, then yes you would be able to have health care + pay off your debt in a little while.
      • Phate8263, on 03/01/2008, -7/+4Wrong, If we wiped out the ENTIRE military budget, we Might be able to afford minimal healthcare.

        Military spending is ~ 4% of GDP = 560 billion

        The cheapest health insurance usaully runs 150$ a month 150*300 million * 12 months = 540 billion
        • kazamx, on 03/01/2008, -3/+5remember that includes paying for the health providers profits. In a National Healthcare System, the money that would have been lost to profits, dividends and $50M bonus payments, goes back to the patients.
    • Cyberen, on 03/02/2008, -0/+3Well gee, all the other westernized nations in the world can afford it and they don't have a debt as bad as us. What's the secret?
  • BevansDesign, on 03/01/2008, -3/+12Wow, I haven't seen the marquee tag used in years! And a 2-frame animated gif with the default blue border on it? Classic! I haven't seen a site like this since the days when I used to dial into the local library (at 2400 baud) and browse through Gopher. It's like being at a museum!
  • gr00vy, on 03/01/2008, -4/+171996 is calling and they want their website back. It is so 0.3
  • dship, on 03/01/2008, -4/+4The site uses a marquee so it is therefore a completely unreliable web site. I mean seriously, marquees are so like 10 years ago.
  • Zorkon, on 03/01/2008, -0/+3I hate to say it, but unless things turnaround soon, you guys are screwed!
    • dship, on 03/01/2008, -0/+1And the US will take the rest of the world down with it!
    • BassMastr, on 03/01/2008, -1/+1Ya think? Why do you think that? Our GDP is equal to that #2 #3 #4 and #5 combined...We can afford to lose a little. And as someone pointed out above the GDP of the entire world is 48 trillion. http://en.wikipedia.org/wiki/List_of_countries_by_ ...
    • lhbaker, on 03/02/2008, -0/+2The only people who aren't going to feel this are living in refugee camps in the Sudan.
  • JonForTheWin, on 03/01/2008, -4/+21DOWN WITH THE FEDERAL RESERVE
  • WatchDragon, on 03/01/2008, -2/+3I really hope this gets better in three years when i get out of college.
    • vertinox, on 03/01/2008, -0/+6Well... At least you're used to the Ramen.
    • lhbaker, on 03/02/2008, -0/+2Three years from now will just be the beginning.
  • tgc1, on 03/01/2008, -2/+4If you can't see that the "commander in chief" is totally drunk off his ass at this point. Then nothing can save America. The first part of solving a problem, is realizing that you have one. The second, what/who's 'causing it, and then to mitigate and remove that problem. If I was america, impeachment would be the first thing up on the block. You know, before the entire country collapses on itself.

    What is rather unfortunate is that there are so many still in denial about the situation. And that even if you started RIGHT NOW, to try and rebuild America, you'd still be *****. That's how bad it has become. I mean your great, great, grand children will be paying off this ***** debt. Doesn't that mean anything? Is that not sinking in?
  • frogman54, on 03/01/2008, -1/+2They're going to run out of numbers that people recognize soon. How many Americans know what the hell a quadrillion is? We might be better off saying a bazillion dollars.
  • JayInOhio, on 03/01/2008, -2/+4About 10% of that total is mine, so its really not that bad.
    • rockdawg, on 03/01/2008, -0/+2It's the Federal Deficit not including private citizen debts.
  • EarlOfLade, on 03/01/2008, -7/+5What is needed now are huge tax breaks so we can create even more debt!

    Welcome to the Backwards States of America! Next idiot right winger who claim tax cuts are the answer to everything, will be poked in the ass with a red hot piece of iron!
    • lpse2000, on 03/01/2008, -0/+5So paying more of one's paycheck to the government so one can't pay off his debt (or spend it into the economy) is going to work how?
      • EarlOfLade, on 03/01/2008, -1/+2Government debt == your debt.

        It's amazing that this is not obvious to the moonbats on the right!
        • warnergt, on 03/02/2008, -3/+2What is not obvious to moonbats on the left is that higher taxes is not the only way to reduce deficits. We can reduce spending -- but this is not acceptable to the left.
          • EarlOfLade, on 03/02/2008, -1/+3Sure, I'm all for reducing the military spending with at least 90%, are you?
    • csb92376, on 03/01/2008, -1/+7The problem has nothing to do with tax cuts. I know it's tough to wrap your liberal head around this concept, but tax cuts have historically shown increases in tax revenue to the overlords. What needs to happen is CONTROL OVER GOVERNMENT SPENDING. Congress (with their approval ratings lower than the president's) needs to stop wasting money and get serious about fixing our dire financial situation rather than announce new entitlement programs every week. This country is BANKRUPT... and it's not just the republican's fault. It's OUR fault.
      • EarlOfLade, on 03/01/2008, -1/+3And when the spending goes up, the taxes must go up to pay for the government spending.
  • ...---..., on 03/01/2008, -3/+4But wait... Bush just told us that there would be no recession...
  • 0biKwiet, on 03/01/2008, -6/+7Oh, not this crap again. Are total national debt is about 9 Trillion, seven of which is owed by the government, and three of which is owed by the private sector. While the private debt does need to be paid off, the government debt does not. We just have to keep up interest payments. If we have too much debt/obligation to pay of the interest, bad things happen, (raised taxes, reduction of social services like health care ect.) Right now we're pretty much headed toward spending more than we can afford until this happens, and it will happen because it's not something the government can just ignore. People will stop buying our debt if we can't keep up the payments. However, if the debt were this high, no one would be buying our debt. It's literally impossible for us to have that much debt at our current GDP. This will go to pot way before this can happen.
    • wakarusensei, on 03/01/2008, -0/+87+3=9?
    • Drax0n, on 03/01/2008, -0/+2Just because you hope the article to be false.. doesn't mean it is
    • dagnome1984, on 03/02/2008, -0/+3Well future obligations is around 400 trillion so 48 sounds about right.
  • deadcrickets, on 03/01/2008, -3/+7Just think.. whoever is the next President will have no choice but to raise taxes. Can you guess which class stratus will take the brunt of it? I'll give you a hint.. it's not the one with the oil barons like Cheney.
    • aspec, on 03/01/2008, -3/+3That's not what Obama says.
      • d3mag0gu3, on 03/01/2008, -4/+2The same Obama who's taking in millions from corporations and special interests. Wake up simpleton!
    • Drax0n, on 03/01/2008, -2/+1Depends who gets elected.
      • deadcrickets, on 03/01/2008, -1/+2Doesn't matter which one gets elected. McCain will naturally put the pain on the middle class more. That doesn't mean that Obama or Clinton would not increase your taxes. To think otherwise is naivety and doesn't mesh well with history.
  • jrain157, on 03/01/2008, -4/+6It's on the internets. It must be true.
    • RationalXubrnce, on 03/02/2008, -1/+3As much as people love to repeat that line it seems most of the lies are off the internet. On the internet at least people have their guard up and can read 20 versions of the same story. Maybe you should go do that so you can see that that this really is true and we are in big trouble.
  • johnvid, on 03/01/2008, -5/+2I know that the assasination of the president wont exactly bring all those dollars back, BUT we could all rest assured knowing he got his just deserts. How many people are there in America that own guns? How many DIGG users Own Guns? All you need is one The Balance of power needs to be restored rise up of your couches and DO SOMETHING!!! ANYTHING !!!
    • lpse2000, on 03/01/2008, -1/+1Lead the charge assclown.
    • RationalXubrnce, on 03/02/2008, -0/+2 Sacrificing your life to shoot a figurehead puppet to make way for another figurehead puppet will change everything right?
      • johnvid, on 03/03/2008, -1/+0I Know what you mean...but I thought Bush was a FOOL STOODGE president, that would be taken out and replaced by someone more moderate after all the bad ***** had been done. BUT HE's Still THERE !!!???
  • subarusqueege, on 03/01/2008, -1/+4"total debt was created since 1990, a period primarily driven by debt instead of by productive activity."

    No sh!t Sherlock ......................?
  • zmigliozzi, on 03/01/2008, -0/+2Makes the federal government look like they know how to spend money. The American Populous is in the hole over 4 times the amount as our government. PWNED.
  • ulmedas, on 03/01/2008, -0/+4Sweet...the sooner Armageddon comes, the sooner we can rebuild from scratch. It'll be fun. Come on...start using your credit card to buy canned goods and rifles to store in your backwoods bomb shelter now...I am...
  • nwoantibody, on 03/01/2008, -2/+7Guess what happens when the economy crashes? Dictatorship walks in.
    Did you even think that your rights were supported by anything other than your money?
    That's why when it plunges... your constitution will go up in Bush's ass.
    Throughout history, the rich have the rights, the poor have no rights as they don't have the means to fight to instigate or create justice that's not by their own hands.
    Watch how the Federal Reserve cuts your hands and you're left bleeding to death as the world plunges to your country and buys everything for the price of nothing.
  • bloodguard, on 03/01/2008, -2/+3I wonder which state is going to be the first to repudiate the federal debt and try for a financial secession. Not a full blown political secession but just limit the amount of financial bleed out to D.C. If the boat is sinking it may be time to throw a few of the less self-sufficient (east coast) states to fend for themselves.
    • warnergt, on 03/02/2008, -0/+3Well, they would have to buy their way out since the debt is theirs, too. Collect $161,287 from every man, woman and child in your state. Send us the check and we'll let you secede.
      By the way, what makes you think the east-coast states are less self-sufficient? The state of California seems to be having some major financial problems.
  • tehxen3, on 03/01/2008, -0/+6That's a really reliable website.
  • hidromatic, on 03/01/2008, -1/+2our government doesn't lie to us...do they???
  • rexblade, on 03/01/2008, -2/+9How dare you post some truth on digg! This makes me very uncomfortable and i dont want to know about reality that makes things like universal health care and world wide policing silly. Please only post articles that make everything seem ok.
  • wakarusensei, on 03/01/2008, -0/+1just seeing the Web 1.0 made me want to pull out my copy of Omniweb and my 300bps modem
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