Series: Economic Recovery Is A Bunch Of Lies Pt 2

This story came in last night. Apparently the Federal Government breached its debt limit so the house approved an emergency $290 billion limit increase. This sounds like we are living at the top of our credit card limit... recovery is on the horizon!

"The ceiling was set at $12.104 trillion dollars.
The latest posting by Treasury shows the National Debt at nearly $12.135 trillion. "

To read more about these green shoots follow this link: http://www.cbsnews.com/blogs/2009/12/16/politics/politicalhotsheet/entry5987341.shtml

Series: Economic Recovery Is A Bunch Of Lies Pt 1

This will be a very simple series where I will provide excerpts and links to articles in the media that demonstrate just how smoothly this recovery is going. Let's start with a report from New York. Governor Patterson had this to say:

"I can't say this enough:
The state has run out of money.
We are $1 billion short..."
-New York Governor Patterson

To read more about these green shoots you can find the article here: http://www.nydailynews.com/ny_local/2009/12/13/2009-12-13_untitled__2gov13m.html#ixzz0ZxgA0CtB

FDIC: You're Money Is Insured, Really It Is!

The FDIC is officially broke (not much of a surprise) with -8.2 billion dollars. This just after Sheila Bair made this video assuring everyone that their money is safe and sound. To be fair, at the time of that video the FDIC had roughly 10.4 billion in their fund. So, let's assume that the fund rate of decline would continue at 50% of that amount over the next year. The fund would roughly have: -26,800,000,000. So, this should have you wondering: how is my money insured? Any rational person would surmise that they are backed by the full faith and credit of the US Government!

That doesn't sound like an unfair shake, and it's true too! So all is well right? Wrong. What is the full faith and credit of the US Government worth? Treasury Direct has that answer: -12,011,838,881,463.68. That is negative twelve trillion dollars. So if the FDIC is insuring your money but they are out of money, and the US Government is backing the FDIC, but they are out of money, then that begs the question AGAIN: how is MY money being insured? I can't answer that question for you, and I'm sure few others could provide a correct answer.