The United States owes a lot of money.
• As of 2012, US debt is larger than the size of the economy.
• The debt ceiling is currently set at $16.394 Trillion, estimated to be hit around Sep 14, 2012.
This is known as the debt ceiling and restricts the ability of the US government to continue borrowing and becoming further indebted. Unless Congress approves the debt ceiling to be continually raised, the US will not be able to settle its obligations, money will run out, the nation will default on its Bonds and effectively be bankrupted.
The only alternative is to continue to create more and more money, and this is done by creating more and more debt. In the process - the value of money (the US$ currency) is perpetually debased, and because the US$ is the reserve currency of the world, in essence; this indirectly results in the value of money being devalued the world over.
As these mechanics are now well entrenched into the global financial system, we are merely witnesses to the this situation as it unfolds. Which is a political nightmare as those that benefited from this irrational system, get bailed out, and those that didn't, the poor - are having to foot the bill via, austerity measures, inflation, higher taxes, lower social benefits.
As we have been saying for near on a decade now: "In the good times, gold is a commodity. In the bad times, gold is a currency", and we are into a generational period of bad times.
Put simply; 'Bad money chases out good money' - and so the good money will invariably find its way into the soundest monetary asset for a generation to come - Physical Gold Bullion.
This Infographic illustrates the enormity of the US Debt issue by visualizing the issue in stacks of $100 Bills. Have a look:
One Hundred Dollars $100:
Most counterfeited money denomination in the world. It keeps the world moving.
Ten Thousand Dollars $10,000:
Enough for a great vacation or to buy a used car. Approximately one year of work for the average human on earth.
One Million Dollars $1,000,000:
Not as big of a pile as you thought, huh? Still this is 92 years of work for the average human on earth.
One Hundred Million Dollars $100,000,000:
Plenty to go around for everyone. Fits nicely on an ISO / Military standard sized pallet. The couch is worth $46.7 million. Made out of crispy $100 bills.
One Billion Dollars $1,000,000,000:
You will need some help when robbing the bank. Interesting fact: $1 million dollars weights 10kg exactly. You are looking at 10 tons of money on those pallets.
One Trillion Dollars $1,000,000,000,000
The 2011 US federal deficit was $1.412 Trillion - 41% more than you see here. If you spent $1 million a day since Jesus was born, you would have not spent $1 trillion by now...but ~ $700 billion- is same amount the banks got during bailout.
One Trillion Dollars- by Comparison of $1,000,000,000,000 dollars to a standard sized American Football field. Say hello to the Boeing 747-400 transcontinental airliner that's hiding in the back. This was until recently the biggest passenger plane in the world. You can see the White House with both wings to the right.
"My reading of history convinces me that most bad government results from too much government."
- Thomas Jefferson
$16.394 Trillion - 2012 US Debt Ceiling
The US debt ceiling limit D-Day is estimated for September 14, 2012. US Debt has now surpassed the size of US economy in 2011-- rated @ $15,064 Trillion. Statue of Liberty seems rather worried as United States national debt is soon to pass 20% of the entire world's combined economy (GDP / Gross Domestic Product).
“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” - Thomas Jefferson
122.1 Trillion Dollars - $122,100,000,000,000. - US unfunded liabilities by Dec 31, 2012.
Below you can see the pillar of cold hard $100 bills that dwarfs the WTC & Empire State Building - both at one point world's tallest buildings. If you look carefully you can see the Statue of Liberty. The 122.1 Trillion dollar super-skyscraper wall is the amount of money the U.S. Government knows it does not have to fully fund the Medicare, Medicare Prescription Drug Program, Social Security, Military and civil servant pensions. It is the money USA knows it will not have to pay all its bills.
If you live in USA this is also your personal credit card bill; you are responsible along with everyone else to pay this back. The citizens of USA created the U.S. Government to serve them, this is what the U.S. Government has done while serving The People.
The unfunded liability is calculated on current tax and funding inputs, and future demographic shifts in US Population.
Note: On the above 122.1T image the size of the bases of the money stacks are $10 billion, and 400 stories @ $4 trillion
"It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world." - Thomas Jefferson.