It’s official. The U.S. federal debt has crossed another unbelievable line: $15 trillion.
The Treasury Department reported the news on Wednesday, and various sources are reporting different figures for the level of debt person and per family.
But the discrepancies between those figures are a distinction without a difference. The United States of America is drowning in debt. And it may never recover.
A year ago Dagong Global Credit Rating reduced its rating on the sovereign debt of the United States from AA to A+. In August it dropped it another notch to A. In an interview on Saturday the agency’s chairman, Guan Jianzhong, said it is nearly inevitable that the agency will further reduce its rating of U.S. sovereign debt: "We are continuing to monitor this closely. First of all we need to look at this year’s economic growth [in the US] and then predict next year’s trends. If in the year 2012 the overall projections are not very good, meaning that the sources of payment – and liabilities – are bad and cannot be changed, or change for the worse, then we will lower the rating once again."
In late October White House Chief of Staff William Daley (left) ordered a complete review of all loan guarantees the Department of Energy has made to various energy projects. The review “is a tacit acknowledgement that the loan program [that supported the now-bankrupt energy company Solyndra]…has raised enough internal concern that an outside assessment is necessary…”, according the Washington Post.
In his Forbes magazine article published Thursday, Nathan Lewis makes it sound easy to get back to a gold standard. After all, it has been accomplished numerous times in history around the world, including in America following the Civil War.
CNN’s article by Charles Riley quoted several of the Republican candidates for President out of context and then asked several unknown Keynesian economists — Keynesians believe in growing and empowering the government to stimulate the economy — to comment on those quotes. The result was a one-sided dismissal of anything the candidates had to say about the economy and how they might fix it.