Liberty Phoenix

New, Hard Evidence of Continuing Debt Collapse!

http://www.moneyandmarkets.com/new-hard-evidence-of-continuing-debt-coll...

We are governed through our perceptions. Sooner or later, reality will intrude and people won't understand what went wrong until it's too late.

Hmmm, what a surprise! China is starting to worry where this borrowing binge might be taking them.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a_dsDz145J_A&refer=asia

I can understand why China might be worried about their dollar denominated holdings, but I'm not sure what they are expecting us to do about it. The only way that we could guarantee the value of their holdings is to promise them that we'll borrow the money from them to make up for any lost value later on. I think this pyramid scheme is starting to look more like an Ouroboros.

Each household is now on the hook for $100,000. And be it through taxes or inflation, you will pay.

http://news.yahoo.com/s/politico/16620

Of course, we can now add World War II and the Civil War to our list of things that cost us less than these bailouts:

• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Civil War: Cost: $8.3 billion, Inflation Adjusted Cost: $239.4 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• World War II: Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
 

TOTAL: $7.76 trillion

With a trillion to spare. Absolutely mind boggling!

Initially based on:
http://www.ritholtz.com/blog/2008/11/big-bailouts-bigger-bucks/

Civil War Costs from here (as of 1879):
http://www.civilwarhome.com/warcosts.htm

Well, as if the bubble in treasuries wasn't enough, the Federal Reserve is looking to compete:

http://sec.online.wsj.com/article/SB122888021757894023.html

And I'm sure they'll maintain the levels of transparency that we're accustomed to. Why any foreign nation would continue to invest in U.S. bonds is a mystery to me.

I know, the suspense is killing you. Will Ron Paul be for or against the bailout?



http://www.youtube.com/watch?v=UvFZH_adksc

People can now pay for the privilege of loaning the government their money. I wonder if they get a "I donated" sticker to prove their patriotism.

http://news.yahoo.com/s/afp/20081209/pl_afp/financeeconomyusmarketsbonds...

Just to put it all in perspective, the cost of these bailouts now exceeds the combined costs of the following:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

From:
http://www.ritholtz.com/blog/2008/11/big-bailouts-bigger-bucks/

How much longer until we can throw WWII ($3.6 trillion) in there as well?