Will China and Japan soon own the US?  This not impossible since they hold 48% of the country’s debt burden.  I’ve always understood that when you own a company and others own over 1/2 of the debt, then you no longer own the company.  Is that not right?


14 November 2012 Last updated at 00:09

US government deficit rises sharply in October




“The US deficit came to $1.1tn dollars in the year to September 2012, or about 7% of economic output

The US government’s budget deficit rose sharply in October, highlighting the financial challenge President Barack Obama faces following his re-election.


The deficit increased 22% from a year earlier to $120bn (£75bn) as government spending outpaced tax revenues.


The deficit is the amount by which government spending exceeds its tax revenues, with the government needing to borrow the difference.”



“Public debt increases or decreases as a result of the annual unified budget deficit or surplus.[2] The federal government budget deficit or surplus is the difference between government receipts and spending, ignoring intra-governmental transfers. However, some spending that is excluded from the deficit (supplemental appropriations) also adds to the debt.”


“According to the non-partisan Congressional Budget Office, if the White House and Congress can reach a budget deal that extends the tax cuts and avoids reductions in spending, the deficit will be about $1 trillion for this budget year.”



Sky:  Here’s where I utterly fail to understand what’s going on.  The Congressional Budget Office wants to [1] continue the taxcuts [2] refuse to cut spending, and this will result in a decreased deficit?  They say it will be $1 trillion.  But it was already $1.1 trillion in September, 2012 and rose 22% in October with no indication that it will decrease in the near future.  Now as far as the trade deficit decreasing in September -*see below- that will cease as people start buying up Christmas presents from goods made overseas.

Also, looking at corporate tax and corporate tax incentives, it is doubtful if the increased tax revenues as a result of a better balance of trade will seriously decrease the budget deficit.  Of course, when banks and other corporates pay obscene salaries and incentives, even when their companies are on their knees; this is an expense to the company and will decrease profits thus decrease taxable income. 


“Federal debt held by the public will reach 73 percent of GDP [gross domestic product] by the end of this fiscal year—the highest level since 1950 and about twice the share that it measured at the end of 2007, before the financial crisis and recent recession.”  http://www.cbo.gov/publication/43539


Sky:  It is obvious to me that it is time to pay the piper.  But the question is, who will pay?  The political party that controls the House says the government cannot increase taxes for the 1% yet the 1% have increased their wealth by somewhere between double and triple since 2008.  So who do you think is going to pay?  Yep, those with the least political power.  If you look at Greece for instance, the cuts mainly affected the lower income brackets.  Sure, the wealthy invest in industry that creates jobs etc.  But on the other hand, the increase in wealth and corporate pay has not been ignored by the have-nots and perhaps a little more should filter down to them.  I don’t believe I am alone with my belief that whilst it was the well to do who broke the law and acted foolishly and greedily, the pay back is ending up on the shoulders of the poor.  We need to bring back the credo of the radio program – The FBI in Peace and War – crime doesn’t pay!!

Well, I am nauseated by the whole financial picture and will end this rave.




U.S. debt from 1940 to 2011. Red lines indicate the debt held by the public (net public debt) and black lines indicate the total public debt outstanding (gross public debt), the difference being that the gross debt includes that held by the federal government itself. The second panel shows the two debt figures as a percentage of U.S. GDP (dollar value of U.S. economic production for that year). The top panel is deflated so every year is in 2010 dollars.





8 November 2012 Last updated at 14:50

US trade deficit falls to near two-year low




Exports and imports both rose during September

The US trade deficit has fallen to its lowest level in almost two years, as exports reached an all-time high, official figures have shown.


The deficit in goods and services narrowed to $41.5bn (£26bn) in September, raising hopes of increased strength in the US economy.