US Government Takeover of it's Financial Crisis? Real or Scam?
The International Institute of Nonviolence
By: Rev. Jermano
Note: 1000 Billion = 1 Trillion
Well folks the US Government is in a heap of trouble, and one wonders whether all this takeover business really amounts to the proverbial climb up a hill of beans.
Just recently the US government according to Treasury Sec. Paulson tookover Freddie and Fannie which has a total of 5 trillion in loans. The Government takeover was 1 billion for each..Both Fannie and Freddie had positive net worth as of the date of the takeover, meaning the value of their assets exceeded their liabilities. http://en.wikipedia.org/wiki/United_States_public_debt
But I wonder where they get that bit of good news? It's like this morning hearing for the first time that Oil dropped below $100 a barrel, to see the next headline OPEC drops production by 500,000 barrels forcing the price back up.
As of September 2008, the total U.S. federal debt was approximately $9.7 trillion, about $31,700 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $5.3 trillion. If, in addition, unfunded Medicaid, Social Security, Medicare, etc. promises are added, this figure rises to a total of $59.1 trillion. In 2007, the public debt was 36.9 percent of GDP , with a total debt of 65.5 percent of GDP.
But then again according to someone elses numbers at USA Today: The long-term economic health of the United States is threatened by $53 trillion in government debts and liabilities that start to come due in four years when baby boomers begin to retire.
I tend to believe the latter because the Military Budget is another albatrose.
In 2003, the United States spent about 47% of the world's total military spending of US$910.6 billion, according to the Stockholm International Peace Research Institute.
And Wiki lays it on the line:
The recent invasions of Iraq and Afghanistan are largely funded through supplementary spending bills outside the Federal Budget, so they are not included in the military budget figures listed above. In addition, the United States has black budget military spending which is not listed as Federal spending and is not included in published military spending figures. Other military-related items, like maintenance of the nuclear arsenal and the money spent by the Veterans Affairs Department, are not included in the official budget. Thus, the total amount spent by the United States on military spending is higher.
Total Pentagon spending:not including funding for DoE or combat operations FY07-FY11 exceeds 2.3 trillion
So let's get this straight:
Fannie & Freddie Real Estate debt = 5 trillion
The US National Deficit = 53 trillion
And how about the aid to other countries in the world say to Israel:
The House of Representatives approved $2.4 billion in military assistance for Israel as part of the fiscal year 2008 foreign aid bill drafted and shepherded through the chamber by Rep. Nita Lowey (D-NY), the chairwoman of the House Appropriations Foreign Operations Subcommittee. But that is scant to the amount we have doled over the years.
And then we have the cost for relief due to USA Hurricanes and other acts of God.
And that cost does not reflect the storms since then and now or in the future.
How many banks are expected to fail?
"It's our view that regulators are expecting 100 to 200 banks to fail" over the next 12 to 24 months, says Jaret Seiberg, a research analyst for the Stanford Group. Seiberg expects those failures to occur predominantly in states like Ohio, Michigan, California, and Georgia—where the construction lending market, which includes residential real estate, is expected to weaken dramatically.
We are in some serious bad numbers folks.
What would I do?
The War machine has got to go because of its hidden agenda budgets, and its cronyism on the world stage. Confidence is gone because of the war. Having a War with no end in sight is bringing on the USA 2nd World Depression. I would not sell bonds and T-bills for the debt. but sell them for the Real Estate Fannie and Freddie stabilization. Aid to Israel would be divided between Social Security - Medicare and Medicaid.
The scarey thing is we have 2 candidates Mcbama and PalBidin who have no idea what to do.