We want you to prop up the stock market. Everybody knows it’s a Ponzi scheme that will collapse without your support. You don’t want us to end up like Bernie Madoff’s clients. No, Ben, we love Ponzi schemes. We get in early and get out before they collapse. That’s why we’re rich. The bad thing is that they sometimes collapse before we can get out. But you’ve bailed us out twice in the last couple of years….
$373.6 billion got vacuumed out of the USA in just six months. And was replaced by debt.
… if you can print money and are in control of the credit markets. Look at Japan. That doesn’t mean the underlying problems don’t matter.
Fannie Mae—you already forgot all about it, didn’t you?—well, it just reared its ugly head again with its Q2 earnings report. Here is the most important number:
$5.1 billion in new bailout money from the U.S. Treasury—the eleventh quarter in a row it has received bailout money. That brings the total bailout money it received so far to $104.8 billion, with no end in sight.
As reported in Le Figaro, the French business daily, and in other foreign media, but curiously not in the major US media, the US Gross National Debt jumped by $238 billion to $14.580 trillion the day after the debt-ceiling deal was signed.
In case you didn’t stay up all night watching the spectacle, and tearing out your hair: Your very own… … your favorite one, the one you worked so hard to earn and even harder to save, yes, the ever shrinking one, well, it dropped to a new all-time low against the Japanese yen in Tokyo. And…
There is a landmine buried in today’s 2Q GDP report, and Congress is about to step on it while engaging in its debt-ceiling pissing match.
The raw numbers are ugly. The federal budget deficit is nearly 40% of total spending; that is, for every $1,000 the government spends, it collects $600 in taxes and borrows $400. Doesn’t anyone do any math in Washington?
…is falling off a cliff again, hitting ¥78 and €0.69. You can sit idly by and watch it get demolished, or you can do something about it.
What galls me the most in this entire imbroglio of our debt ceiling is the hypocritical approach of our politicians: A Congress that authorizes every dollar that gets spent, gleefully accumulating a pile of debt so vast it’s hard to wrap your brains around it; and administrations who have been eager to borrow and spend as directed by Congress.