It’s official — the ship is going down. As Zero Hedge reported yesterday:
With precisely one year left for the world and all of its inhabitants, at least according to the Mayans, not to mention on the day of the Winter Solstice, it is only fitting that US debt, net of all settlements for all already completed bond auctions, is now at precisely $15,182,756,264,288.80. Why is this relevant? Because the latest annualized US GDP, according to the BEA, was $15,180,900,000.00. Which means that, as of today, total US debt to GDP is 100.012%. Congratulations America: you are now in the triple digit “debt to GDP” club!
(naturally, this is using purely “on the books” data. If one adds the NPV of all US liabilities, and adjusts GDP for such things as today’s housing contraction, then the magical triple digit threshold was breached long, long ago).
This means that our credit rating will be nosediving, and interest rates on our Jupiter-sized debt will correspondingly climb. The communist Chinese military will be putting out gold-plated aircraft carriers with the proceeds.
At this point the only thing that could save America from total ruin would be a balanced budget amendment combined with a low cap on government spending as a percentage of GDP, implemented immediately. Given the irresponsible kleptocrats running the country, we would be better off pinning our hopes on an alien invasion.
On tips from AC and Byron.