Thursday, August 21, 2014
   
Text Size

Search our Site or Google

Fiscal Follies: Greece versus the U.S.

Articles & Blogs - International Commentary

User Rating: / 37
PoorBest 

The brilliant-but-erratic (erratic-but-brilliant?) Brit, Ambrose Evans-Pritchard was at it again on Sunday, conjuring up more visions of Greece's financial immolation – with a liberal dose of doom-and-gloom as to the future of the EU, itself. As I have stated previously, there is no denying this writer's analytical prowess, when he is able to put aside his cultural biases, namely that the U.S. and U.K have magic, “Teflon” economies – where their own, enormous fiscal problems are not subject to the same economic principles which apply to all the economies of the rest of the world.


Sadly, his weekend commentary illustrates this in vivid fashion. Read on as Evans-Pritchard pronounces his death-sentence on the Greek economy:


Greece's national debt will be 120pc of GDP this year. S&P says it will reach 138pc by 2012. A fiscal squeeze – without any offsetting monetary or exchange stimulus – will cause tax revenues to collapse. Debt will rise higher on a shrinking economic base...Greece is caught in a text-book deflation trap.


By “deflation trap”, what is clearly meant is a downward spiral, from which there is no way of avoiding eventual default. Evans-Pritchard is also crystal-clear on what is the biggest factor in dooming the Greek economy:


Greece alone in Western Europe treats the military budget as a state secret. Rating agencies guess it is a ruinous 5% of GDP. Does the country really need 1,700 battle tanks, 420 combat jets, and eight submarines...?


If one needs proof that Evans-Pritchard believes that the U.S. is not subject to the same economic principles as the rest of the world, that passage provides it in abundance.


No one knows how much the United States is spending on its “War on Terror”, along with the rest of its bloated military budget – because it's a “state secret”. Of what is known, not only does the U.S. out-spend every other nation on Earth, it spends more than the next, four-largest militaries combined. Based on the “official” defense budget, along with all the “special appropriations” which are needed to keep the U.S. war-machine solvent, it is somewhere around $1 trillion per year – and likely much, much higher.


During the eight years of the Bush regime, his “official deficits” totaled $2.3 trillion, while the actual, national debt increased by $4.5 trillion – nearly double the official amounts. That works out to $2.2 trillion simply being missing from the official accounting of the U.S. government. Of those missing trillions, most of it (almost $2 trillion, exactly) was missing from the U.S. government's “off-balance sheet” accounting.


Along with observing that the whole concept of a government being allowed to have an unofficial (“off-balance sheet”) budget in the trillions of dollars is totally outrageous, I think it goes without saying that those missing trillions disappeared into the fiscal, black-hole known as “U.S. military spending”.


With U.S. military spending somewhere at or above the astronomical total of $1 trillion per year, then given the “official”, annual GDP of the U.S. (approximately $13.5 trillion) that works out to well over 7% of U.S. GDP or roughly 50% more than the “ruinous” military spending of Greece. However, before we go any further, let's take a closer look at “official” U.S. GDP.


In his ground-breaking, video series, the “Crash Course”, Chris Martenson delved into those U.S. GDP numbers. What he found was that total U.S. GDP contained roughly $2 trillion per year of statistical “padding”, for which no business transactions took place, nor was any (tangible) wealth generated. Removing this “padding” would take “official” U.S. GDP down to $11.5 trillion per year. At that level, U.S. defense spending likely totals at or above 9% of GDP – approaching double Greece's “ruinous” level.


If this was Evans-Pritchard's only blind-spot with respect to the U.S. economy, then perhaps his latest analysis would still be salvageable. However, either Evans-Pritchard is not well-informed of the extent of the debt problems of the United States, or he simply chooses to ignore them.


We know the “official” national debt of the U.S. is $12.1 trillion, because there was just a big fuss in the U.S. media that the government came within days of failing to raise the legal, debt-ceiling above that number – before reckless government spending exceeded it. As with most other U.S. economic statistics, however, the “official” numbers have little resemblance to the real world.


As I have pointed out in previous commentaries, of all the “crimes” which both successive Democratic and Republican regimes have committed against the American people, at or near the top of the list is the $4.2 trillion which these miscreants have pillaged from so-called government “trust funds”. These are the trust funds which are supposed to provide a tiny portion of the funding for massive, government entitlement programs.


These are the same entitlement programs for which U.S. politicians (of both stripes) have managed to totally ignore somewhere in the range of $60 to $100 trillion in “unfunded liabilities”. Thus, at a time when it is obvious that there is no possible way the U.S. government could ever fund those entitlements, the money which should have been invested and appreciating so that it could provide a “down-payment” on those social programs is missing.


In the fantasy-world of government accounting, it was used to “pay down the deficit”. The only thing more pathetic than numerous, U.S. governments attempting to pass-off this 'logic' on the American people is that there has been nary a peep from those same people about this travesty of common sense. You cannot “borrow money” from yourself.


And the trillions of dollars taken from government “trust funds” aren't like the trillions the U.S. government has borrowed from foreign governments – money which it has neither the means nor the intent to ever repay. The trillions missing from those government trust funds are already subject to claims from the American people, as the baby-boomers begin to retire.


Even if we allow the U.S. government to live in its Fools' Paradise, and continue to claim that the $60 -$100 trillion in “unfunded liabilities” don't count when it comes to measuring U.S. debt, at the least, the $4.2 trillion which the U.S. government “borrowed from itself” to “pay down the deficit” must be added to the official total.


This would put current U.S. government debt at $16.3 trillion. Again, if we allow the U.S. government to pretend to have annual GDP of $13.5 trillion, this puts the current U.S. debt-to-GDP ratio at over 120% of GDP – and worse than that of Greece, today. On the other hand, if we use the more plausible annual GDP total of $11.5 trillion, then this puts the current U.S. debt-to-GDP ratio at more than 140% of GDP – or worse than Evans-Pritchard/S&P's forecast for Greece's economy by 2012 (at which point the Greek economy was pronounced “trapped”).


Of course, there are some huge differences between the economies of Greece and the United States. Greece's economy amounts to about 3% of the total EU in size. This means that its “big brothers” in the European Union could easily bail-out that economy, with the amount involved being trivial. It is the precedent of such a bail-out which has made the EU unwilling to consider helping Greece.


Conversely, with the massive size of the U.S. economy only dwarfed by its own debts, attempting to bail-out the U.S. economy from its current position of hopeless insolvency would strain the entire global economy to the breaking-point, something which would never be considered for a population of spendthrifts representing only 5% of the Earth's total.


I don't want to appear to be singling-out Evans-Pritchard for criticism, indeed, quite the opposite. I frequently read his work, and as I alluded to earlier, often find his views useful and informative – unlike 90% of his peers in the U.S. and U.K. Media.


As I wrote in a previous commentary (“U.S. Propaganda-machine Continues Bashing Europe”), the game being played by the U.S. and UK media in attempting to portray the problems of other economies (sometimes it's China, sometimes it's Europe) as being worse than those of the U.S. is being played because the only way the crippled U.S. economy can be made to appear tempting to investors is when portrayed as the “least-worst option”. It's like trying to get someone to date your ugly sister, by drawing a mustache on the pictures of all the other girls.


I have a suggestion for all the “journalists” drawing pay-cheques in the United States and United Kingdom. The next time you sit down in front of your keyboards to write another “the-sky-is-falling” article about China's economy or one of the European scapegoats, take a good, long look in the mirror, first.

Trackback(0)
Comments (2)Add Comment
Jeff Nielson
...
written by Jeff Nielson, January 19, 2010
Thank you, JsJ. At the risk of sounding HOPELESSLY immodest, that is one of my own favorite one-liners - out of all that I have written.
JsJ
...
written by JsJ, January 19, 2010
"It's like trying to get someone to date your ugly sister, by drawing a mustache on the pictures of all the other girls."

My co-workers wondered what was making me laugh so hard... smilies/cheesy.gif

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.

busy

Latest Commentary

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12

Latest Comments

Disclaimer:

BullionBullsCanada.com is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

Login Form

plavix rxlist diclofenac birth control pills lasuna next day delivery herbal blue pill side effects periactin lowest price online receive viagra overnight periactin store monoamine prescription seroflo by mail zestoretic prices buy mentat ds syrup without rx buy augmentin australia compare prices sumycin where can i buy cystone 100 mg prevacid reviews on phexin cheapest finast to buy purchase promethazine cough syrup albendazole doctors online aricept side effects how to buy zyban online suppliers of cipro in us purchase cheap levaquin online levofloxacin seroflo 500 inhaler diakof order canada pletal max dose piracetam amazon review safe viagra plus buy ciprofloxacina infeccion urinaria embarazo actonel pill shop discount code revatio online without rx ordering shallaki finpecia paypal can we trust capoten online himplasia dosage too high benzac drug store online buy ceftin online without a prescription mifepristone online india what works better than clomid canadian alliance terminals inc abc canada order finax online uk is it illegal to order generic female viagra buy sustiva can i buy fluconazole over the counter buy tadalafil paypal pariet 10mg qty 14 can order erexin-v online andrew canada global rx glyset uk next day delivery thyroid medication and depo provera prednisolone steroids online drugs deltasone buy lukol are cipla drugs safe cialis pill pfizer lipitor australia discount levitra plus why are canadian prescription drugs so cheap buy aciclovir prescription is viagra soft available over the counter leukeran 2mg cost what is percocet 512 can ventolin be bought over the counter in australia party drugs for sale missed amitriptyline dose my prevacid coupons compazine prices cvs aciphex medication interactions himplasia sublingual dosage price depakote er 500 ou acheter alliance dofus buy cheap bactroban using pay pal tricor prices at costco lov cost brand amoxil tenormin generic name atenolol buy valtrex visa cheap diclofenac generic diclofenac available over counter uk best pharmacy 4 u famvir online shipping trimox buy on line methotrexate injection price in india medicine augmentin used fast artane delivery buy aciclovir with cream generic actos on the internet xalatan 0.005 prices how much do lithium cost per gram top canadian pharmacy without drug 100 mg glucophage professional store non prescription viagra metformin online pharmacy no prescription xenical precio mexico protonix dr 20 mg tablet seroquel fast canada buy propecia pills in the india trental online in us generic viagra soft switzerland buy generic isotretinoin buy beta blockers online australia elimite canada pharmacy methotrexate shortage april 2012 urispas paypal shatavari on line no script clomid late ovulation twins best place to buy zebeta online isotretinoin online order purchase suprax mg worldwide pharmacy evecare viagra for purchase without a prescription zetia to buy in australia glucophage without rx post cycle therapy sominex where do i topamax in canada nike air max 95 for sale cheap liquid anafranil review safety of cefixime in pregnancy cost of valtrex vs. generic amaryl tablets uses order paxil now getting risperdal in australia can you overdose on anti anxiety pills buy meloxicam online buy lisinopril from mexico online can we trust lincocin online minoxidil better than finasteride buy pravachol quick cheapest drug tadacip gabapentin dosage uk research grade myambutol price celexa without insurance purchasing flovent online uk order aleve pill florida ranitidine propecia generic paypal mechanism of action of aromatase inhibitors and tamoxifen can you buy rocaltrol online mcg canadian pharmacy online discount code albuterol weight loss log comprar kamagra chewable original permethrin cream crabs healthy man viagra generic pulmicort nebulizer discount alli pak tv online net ary news price increase pravachol buy protonix generic american allies in the middle east why has dipyridamole been discontinued how much cialis can you take daily amantadine non perscription countries buy ace inhibitors online propranolol pct buy what is augmentin 500mg used for zovirax buy online australia metformin 1000 mg twice day side effects diprosone cream for hair growth alli venta libre mexico where to get fertility pills over the counter can zantac make you gain weight what does bactrim pills look like lowest price ranitidine cheap vasodilan no prescription prednisone and otc drugs can you get pregnant on the pill levlen how to get amitriptyline can you buy quibron-t online cafergot availability usa heartworm meds with no prescription pfizer rsvp program revatio trental india what else is valtrex used for besides herpes mail-order zyloprim can i get pregnant while on tamoxifen order abilify no rx canadian pharmacy plendil online usa xeloda 100mg cheap erexor shop net ciplox 250 tablets elavil withdrawal symptoms a comprehensive view free or low cost inderal buy snovitra super power capsules orlistat tablets buy online lithium golf trolley sale mestinon uses medication furosemide birth control online mexico how to use allopurinol how much is an adderall prescription without insurance alli diet pill facebook trial erection packs 2 for sale ordering coumadin orlistat for daily use canada information rx zyvox pfizer product bactroban cream price buy diarex lowest price where purchase zithromax low cost overnight etodolac buy suhagra without a script is there a generic available for viagra buy nexium online from australia how to take tricor mg generic differin gel 3 acne zofran price walgreens buy duetact cheap augmentin uk no prescription online no prescription uk for elavil costco pharmacy tinidazole price i took 100mg of benadryl viagra gold coast how to use tretinoin and benzaclin together who were the american allies pulmicort respules for sale pastillas disgrasil para sirven shoppers drug mart canada post milton overnight pharmacy deltasone fedex cod floxin mexico drugs prescription order adalat 20 mg accutane reviews before and after diclofenac sodium gel 3 femcare discount allopurinol gout treatment discount cialis mg prednisona 5 mg dosis en nin~os naproxen tablets nhs decadron tablets side effects retin-a 0,05 spain canadian meds world discount code female sex stimulant pills is generic digoxin effective what is the best foundation for dry sensitive skin where to buy dramamine in canada online drugstore direct coupons doxycycline hyc 150 mg dr tablets singulair 10mg tablets medicine fluoxetine 20mg brahmi daily use reviews cheapest silagra cost of revia without insurance flonase nose bleeds chloramphenicol no prescription needed order buy diclofenac free shipping levaquin generic usa advair diskus cheap medicine ceftin used allopurinol 300 mg tablets side effects 4 corners pharmacy delmar new york prescription for ciprofloxacin lincocin rxlist risperdal visado buy clonidine 0.3 mg how much does metformin er cost zantac 150 usa buy cheap bystolic online is there a generic drug for cialis shallaki no prescription compare prices what is cholestoplex drugs buy lopressor no prescription fast delivery apcalis sx order in the us femara pharmacy coupons side effects of doxycycline 100mg what does procardia dose for preterm labor resistance purchase zyvox antibiotic ranitidine medicine for babies rogaine before and after where is furosemide metabolized levitra professional without prescription miami over counter nasal spray equivalent flonase avapro hct 300 generic alesse birth control pill abilify and india trental lawsuit canada dose maxima de ginseng zetia side effects 2012 buy biaxin in ireland best generic cleocin gel sites what types of calan are there generic orlistat usa bupropion sr cost walmart no rx seroflo online order noroxin medication by mail clozaril online uk flexeril high erowid generic uroxatral us what does allegra do in the body feldene for sale hydrochlorothiazide generic oxycontin where to buy lexapro with visa malegra fxt delivery uk atorlip-5 online forum terramycin no prescription compare prices order voltaren xr donde puedo comprar venlor lexapro price ireland where is calangute beach located cardizem uk buy emsam discontinued comprar chloramphenicol original en madrid acai berry diet prices buy cheap zyban using pay pal kamagra gu"nstig online kaufen robaxin tablets for horses buy propecia now comprar cialis online andorra Purchase cipro 250 mg cefixime pharmacy prices list buy geriforte syrup singapore flonase shipping overseas medicine buy cholestoplex unisom 2 canada where to buy buy hyzaar usa femara side effects women prescription ventolin australia imitrex copay coupon indian pharmacy buspar gasex with prescription eulexin western australia lioresal usa cvs prices purim online legally donde comprar living dead dolls india antabuse price triamcinolone acetonide cream usp 0.025 face zyvox 600 mg treatment where can i buy propecia online speman online meds side effects of zantac 75 where to get actos pct lithium deposits in western australia generic vs brand pills accutane pharmacy isotretinoin online canadian canada pharmacy online orders how much does viagra cost canada buy abilify online overnight delivery cheap viara buy online alli generic exelon capsules 1.5 mg non generic diltiazem suprax capsules dose roxithromycin tablets 150mg how to get free viagra pharmacy hydrochlorothiazide no prescription canada generic chloromycetin buy canada order antabuse tablets prescription cheap aceon buy alli diet pill website zyrtec syrup uses best place to buy diamox without a prescription buy digoxin fast shipping buy metformin online from usa calan blanes holiday cheap late how to import zestril do i need a prescription for diclofenac terramycin 40 mg pharmacy Purchase accutane 2 20mg american ginseng 1000 mg amoxil for uti prophylaxis allopurinol price vpxl online without prescription top 10 online etodolac sites sertralina 50 mg sirve para la eyaculacion precoz nexium tablet sale pain meds used to treat fibromyalgia best online pharmacies no prescription forum ttsh pharmacy singapore buy cialis sublingual overseas arava israel wiki voltaren cvs pharmacy what is bupropion xl for buy genuine bactrim uk evecare overnight pharmacy minomycin delivery uk low dose synthroid for weight loss lithium tab medicine cephalexin 500mg buying arimidex uk medicine abilify used order proventil pill tretinoin 0,025 legal us vegetal vigra for sale buy cialis 10mg dilantin medication reglan without food buy procardia online at canada pharmacy clonidine iv dose hypertension order rx online cost comparison buy stromectol can i get altace buy cheap bupropion no prescription abilify ships from india onde posso comprar depo provera medrol western australia can you get elavil betnovate-n cream price in india what is amitriptyline pills used for can i order ginseng no prescription in the usa naprosyn and alcohol advair online pharmacy shipped to canada north american pharmacy van nuys ca order norvasc from canada buy avapro bulk what is diclofenac sodium enteric coated tablets for generic brand levitra buy canada what kind of medication is singulair where can i purchase periactin pills reviews on metformin forum online buy cheap astelin cheap femara 2.5 mg fincar shortage 2012 where can i order alesse side effects of risperdal withdrawal best bystolic prices cytoxan usa cvs prices buy aspirin for dogs healthcare alliance pharmacy discount card scam where to levitra professional drugstore price increase lamisil generic brand tenormin levothyroxine weight gain or loss viagra puerto rico xenical online rx drug celebrex tdi trimix skills trafalgar genuine alligator belt clonidine dose for hot flashes what is prednisone 10 mg tablet used for list of tesco stores selling kamagra oral jelly dilantin discount program can you buy urispas over the counter reviews on xenical buy cialis online no prescription united states how to purchase kamagra lithium car battery for sale toprol generic usa mail order drugs from india generic 100 mg olanzapine zyvox sales 2010 pfizer merck singulair discount card can you buy inhaler over the counter order ventolin where are acai berries grown how to buy prescription meds online with no prescription quickest bupropion prescription tablet low actos buy vytorin have no prescription when should i get a positive pregnancy test calculator generic levitra canada what is periactin medication buy colospa pills buy generic betapace online which uk site to buy viagra sublingual indian generics online cleocin gel where to get periactin vigra flyplass overnatting geriforte medication side effects buy bactrim cheap prescription online pharmacy methotrexate next day delivery tamoxifen tablets steroids can you take rumalaya gel daily the online drugstore suhagra over counter avodart viagra prescription drug ireland chloroquine drug oversea pet medicine by mail ephedraxin for purchase without a prescription actos generic price lopid overnight shipping cheap oxybutynin without prescription how to buy zanaflex in canada online pharmacy no prescription reviews generic cardizem cd price pfizer and viagra buy proventil online no prescription us cozaar generic prices craigslist usa virginia buy propecia 80 mg online allegra feltz wedding metformin glucophage dosage generic prazosin uk paypal tegretol with american express purchasing lady era online penegra 50 mg review premarin pharmacy prices list cialis without prescription miami where to buy metronidazole flagyl betoptic from usa purchase baclofen cheap cialis from canada is it illegal to order generic drugs online inr warfarin chart is pyridium available on line in canada acquistare nitrofurantoin in italia pharmacy open 24 h london lantus coupons 2012 is there withdrawal from trazodone such combivent medication class order venlor pill side effects of lisinopril-hctz 20 25mg tablets tulasi theatre bangalore online booking where can i get some prednisone parlodel uk next day delivery alli weight loss pills asda best ed drug least side effects levitra dosage 40 mg can you take actoplus met daily chloramphenicol now discount card for micardis canadian alliance of physiotherapy regulators toronto i pill didronel website zyban drug schedule yasmin online pharmacies with out prescription purchasing chloroquine online uk cialis sales online australia 5mg how long do you have to take flomax order terbinafine trusted site to buy viagra trial erection packs 3 generic order atorlip-10 canada buy procardia next day very cheap didronel where to buy orlistat uk can you buy viagra over the counter at tesco keftab express canada prednisone medicine alternatives buy cialis jelly online cheap order metronidazole online no prescription que usar en lugar de viagra buy coumadin 20 bactrim spain drug market order moduretic trandate online shipping online birth control quiz antabuse 40mg discount canadian pharmacy aciclovir order levitra professional online sale rx tenormin without plavix cost nizagara to buy in australia where can you buy cytotec buy tricor cheap where can i get some florinef ketoconazole 2 shampoo usage acheter alliance fable lost chapters bactrim bonus pills where can i get diflucan online trusted acticin online ordering cabgolin from mexico cefadroxil online pharmacies with out prescription lindeza orlistat 120mg buy paxil from india lisinopril best online non prescription pharmacy depakote billig kaufen best generic sinemet review kamagra uk sellers brand viagra no script lithium carbonate solubility online luvox india what is lithium used for bipolar disorder keppra price malaysia what does motrin pm look like how to take rumalaya gel mg buy diclofenac gel online uk what is elocon lotion used to treat arava side effects long term use cipro travel medicine generic for seroquel when dostinex mg tablet trandate without script doxycycline drug oversea is it legal to order painkillers online suppliers of actonel in us best canadian medicine schools trimox results forum ordering diabecon no rx glucophage canada no prescription pariet 20mg prec,o curitiba where to buy myambutol ointment donde comprar pastillas alli mexico mexican pharmacy no prescription penegra differin online with out prescription free viagra sample packs xeloda in the uk now atomoxetine hydrochloride 1st drugstore online buy chloroquine paypal rogaine 5 order online generic omnicef no prescription buy singulair in usa order motilium on line usa what is buspar compared to prometrium usa cvs prices buy online serpina generic pharmacy mexico diflucan amitriptyline combination drug non generic dutas amitriptyline nerve pain dosage canadian health care wait times canada order femara estrogen pills for menopausal women buy cheap amaryllis seeds valtrex compare prices is propecia available on line in canada what is ranitidine hcl 150 mg used for generic for tricor diclofenaco sodico 75 mg 3ml inyectable tinidazole by mail order cephalexin dosage for uti in cats revatio generic availability brilinta vs plavix cost buying cytotec no prescription benadryl dose by weight chart rosuvastatin calcium 10mg tablet crestor drugs nitrofurantoin 100mg buy best place to order cialis what is eurax hydrocortisone cream used for citalopram without a script para que sirve el antiflu-des capsulas printable prevacid coupons 2011 viagra effects on heart what is serpina drugs vermox for men sale in uk requip medication order betnovate n cream canada buy desyrel visa buspar pharmacy prices list canadian online pharmacy for minipress morning after pill nhs side effects oral erythromycin for acne during pregnancy what is carafate suspension used to treat online no prescription uk for protonix buy altace australia pfizer pharma himcolin delivery uk dutas tablets side effects