A little-noticed event occurred at approximately midnight on Monday, October 31, 2011: The national debt of the United States exceeded, for the first time since World War II, the country’s gross domestic product. The website USDebtClock.org showed the gross domestic product crossing the $15 trillion mark for the first time on Monday, while earlier in the day the numbers from TreasuryDirect showed the total public debt outstanding at $14.993 trillion and growing by more than seven billion dollars a day.
In Commerce Secretary John Bryson’s announcement that the nation’s Gross Domestic Product (GDP) grew at an annual rate of 2.5% last quarter, he came close to disclosing the real driver of the economy: producers:
In spite of headwinds hitting the U.S. economy, today’s GDP report — the ninth straight positive quarter — reflects strong consumer spending and export growth and continued investment by American businesses (emphasis added).
The New York Times and CBS has come out with a new poll that shows Americans have a strong mistrust of government. Almost 90 percent of Americans do not trust government to do the right thing and almost three quarters say that they believe the nation is on the wrong track. As the poll probes deeper into what Americans believe the government ought to do, partisan differences appear. Nearly nine out of 10 Democrats believe that the distribution of wealth in the country should be fairer, while two out of three independents agree with that, though only one out of three Republicans believe that to be true. This poll also showed that a significant percentage of Americans support the “Occupy Wall Street” movement while a much smaller percentage support the Tea Party Movement.
David Galland’s article for the Daily Reckoning painted a picture of imminent collapse of America’s monetary system, which was followed four days later by Clive Maund’s possible scenario of bank failures following on the heels of a eurozone collapse. Mamta Badkar raised the specter of hyperinflation in his Business Insider article by reviewing the “10 Worst Hyper-Inflation Horror-Stories of the Past Century,” reflecting interest in whether, or how, the economic disaster of hyperinflation would affect the United States.
A closer look at the Department of Labor’s employment report earlier this month reveals that the real unemployment number is different from the “headline” number. Restated, the Bureau of Labor Statistics (BLS) should have concluded that unemployment is at least 9.1 percent, and most certainly much higher.