Compiled some stuff from earlier posts, enjoy:
Kotlikoff explains that America's "unofficial" payment obligations — like Social Security, Medicare and Medicaid benefits — jack up the debt figure substantially.
"If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap," he says. "That's our true indebtedness."
To eliminate the fiscal gap, Kotlikoff says, the U.S. would have to have tax increases and spending reductions far beyond what's being negotiated right now in Washington.
"What you have to do is either immediately and permanently raise taxes by about two-thirds, or immediately and permanently cut every dollar of spending by 40 percent forever. The [Congressional Budget Office's] numbers say we have an absolutely enormous problem facing us."
http://www.npr.org/2011/08/06/139027615/a-national-debt-of-14-trillion-try-211-trillion?ft=1&f=1001
okey wasen't that endcouraging. Over to Europe..
35 min in to this broadcast an interview with Jim Rickards. Interesting stuff e.g. about EFSF. Italy "only" needs 1 trillion Euros coming three years. And Italy will drag France its largest debtor with it. Take away: were in a depression since 2007 and now we have a recession within a depression. Reputiate all the debt and reboot.
http://www.cbc.ca/video/#/News/Business/1239849460/ID=2086121205
As we all know it was Goldman Sucks that invented and structured this EFSF appoach. So with that a country like Germany stands to risk to get deep in debt via obscure non transparent derivat mechanisms ready to blow. Who actually thought we need more of derivatives and that lack of derivatives was our problem?
Did the Europeans Just Invent a New Government Backed Derivative? When a special purpose vehicle, which was intended to increase the stability of sovereign debt, begins to receive criticism because of the complexity of its structure, you can be forgiven for wondering if it does more harm than good.
http://www.cnbc.com/id/41846746/Did_the_Europeans_Just_Invent_a_New_Government_Backed_Derivative
LONDON, Aug 8 (IFR) - With talk of the size of the European Financial Stability Facility's lending capacity being increased from its current but yet to be ratified ?440bn - numbers such as ?1trn, ?2trn, even ?4trn, have been bandied around - one thing is clear: there is likely to be a lot more paper in the market than was envisaged when the limit was ?250bn. Germany's contribution to the EFSF rises to 29% from 27% under the new proposals, while France's grows to 22% from 20.5%. These swell to 43% and 32% if Italy and Spain withdraw.
http://in.reuters.com/article/2011/08/08/efsf-bonds-idINL6E7J80KF20110808
'Euro on edge, will collapse by November if no new crisis plan'
http://www.youtube.com/watch?v=T1Qd-oohi5c&feature=player_embedded
Bottom line - EFSF, or rather Germany, most certainly is not able to manage this on its own. The $US seems to already have lost all credability and the defecit is humongeous any way you slice or dice it.
Seems this now is playing out for the SDRs. I mean a really fast quick SDR implementation. One can almost hear what the ECB and The FED are yelling - We need the $100 trillion NOW, and China seems anxious as well pushing to implement this new order. But I do believe that as an absoulte prerequisit in order to even be able to implement this new SDR structure gold needs to be "nutralised". This as every competing currency out there will jeopardise any such attemt and most certainly in its very early indricutionary phase.
China Blasts US After S&P Downgrade, Calls for New Global Reserve
http://www.ibtimes.com/articles/193532/20110806/us-debt-downgrade-after-dollar-future-china-blast-standard-poo.htm
Dollar to Be 'Discarded' by World: China Rating Agency
The editorial called for “international supervision over the issue of U.S. dollars” and the introduction of “a new, stable and secured global reserve currency.”
http://www.cnbc.com/id/44050325
Then isent it handy a very detailed SDR plan that has has been in the works for probably decades just has been completed?
The IMF Central Bank structrur in place - Check . Is there enough panic - not just yet but very soon. Okey lets go! But first lets create as much meyham as possible in order to really meak em up. Soon they'll come crawling begging on their knees for the SDR and another shot of stimuli -big time.
Here about the plan..
Jim Rickards Davos - We Need $100,000,000,000,000 of New Debt
http://www.youtube.com/watch?v=ZmDuS_IQ40g
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