Thursday, July 21, 2016
19.4 Trillion Dollars In Debt – We Have Added 1.1 Trillion Dollars A Year To The National Debt Under Obama
In 2006, U.S. Senator Barack Obama’s voice thundered across the Senate floor as he boldly declared that “increasing America’s debt weakens us domestically and internationally. Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.” That was one of the truest things that he ever said, but just a couple of years later he won the 2008 election and he turned his back on those principles. As I write this article, the U.S. national debt is sitting at a grand total of $19,402,361,890,929.46. But when Barack Obama first entered the White House, our federal government was only 10.6 trillion dollars in debt. That means that we have added an average of 1.1 trillion dollars a year to the national debt under Obama, and we still have about six more months to go.
Even though Barack Obama is on track to be the first president in all of U.S. historyto not have a single year when the U.S. economy grew by 3 percent or better, many have still been mystified by the fact that the economy has been relatively stable in recent years.
But the explanation is rather simple, actually. Anyone can live like a millionaire if the credit card companies will lend them enough money. You could even do it yourself. Just go out and apply for as many credit cards as possible and then spend money like there is no tomorrow. In no time at all, you will be living the high life.
Of course many of you would immediately object that a day of reckoning would come eventually, and you would be right. Just like for those that abuse credit cards, a financial day of reckoning is coming for America too.
In the United States today, our standard of living is being massively inflated by taking trillions of dollars of future consumption and moving it into the present. The politicians love to do this because it makes them look good and they can take credit for an “economic recovery”, but what we are doing to our children and our grandchildren is beyond criminal.
On average, we are stealing more than 100 million dollars from future generations of Americans every single hour of every single day. We are complete and utter pigs, and yet most Americans don’t see anything wrong with what we are doing.
At this point, our national debt is more than 30 times larger than it was just 40 years ago, and many (including myself) have argued that it is now mathematically impossible for the U.S. government to ever pay off all of this debt.
The only thing that we can do now is to keep the party going for as long as possible until the day of reckoning inevitably comes.
Under Obama, our national debt will come close to doubling. What that means is that during Obama’s eight years we will accumulate almost as much debt as we did under all of the other presidents in U.S. history combined.
Right now, the U.S. government is responsible for about a third of all the government debt in the entire world. Fortunately the financial world continues to lend us gigantic mountains of money at ridiculously low interest rates, but if that were to ever change we would be in an enormous amount of trouble very rapidly.
For instance, if the average rate of interest on U.S. government debt simply returns to the long-term average, we would very quickly find ourselves spending more than a trillion dollars a year just in interest on the national debt.
And as the Baby Boomers age, our “unfunded liabilities” threaten to absolutely swamp us. By the year 2025, it is being projected that “mandatory” federal spending on “unfunded liabilities” such as Social Security, Medicaid and Medicare plus interest on the national debt will exceed total federal revenue. What that means is that we will spend every penny we bring in before a single dollar is spent on the military, homeland security, paying federal workers, building roads and bridges, etc.
In recent years the Federal Reserve has also had a “buy now, pay later” mentality.
While Obama has been in the White House, the size of the Fed balance sheet has grown by about two and a half trillion dollars. The goal has been to artificially pump up the economy, but when the Federal Reserve creates money out of thin air it is actually a tax on all of us. The purchasing power of every dollar that we will spend in the future has been diminished thanks to the Fed, but most Americans don’t understand this.
What most Americans want is for someone to “fix things” in the short-term, and not much consideration is ever given to the long-term damage that is being done.
I know that the phrase “trillion dollars” is thrown around a lot these days, and to a lot of people it doesn’t have a whole lot of meaning anymore. But the truth is that it is an absolutely enormous amount of money. In fact, if you went out right this moment and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
A final example of our “buy now, pay later” mentality can be seen in our ridiculously bloated trade deficit. We consume far more than we produce as a nation, and we buy far more from the rest of the world than they buy from us. As a result, tens of thousands of businesses and millions of good paying jobs have gone overseas, and many of our formerly great manufacturing cities are now vast industrial wastelands. Our economic infrastructure has been gutted at a pace that is staggering, and yet most Americans still don’t understand what has been done to them.
If you visit your typical “big box” retail store today, where is most of the stuff made? Instinctively, most of you would answer “China”, and that is not too far from the truth.
We buy far, far more stuff from China then they buy from us. This makes them steadily wealthier, and it makes us steadily poorer. Unfortunately, our trade deficit with China has gotten much, much worse while Barack Obama has been in the White House.
At the end of Barack Obama’s first year in office, our yearly trade deficit with China was 226 billion dollars. Last year, it was more than 367 billion dollars.
Are you starting to see a trend?
Our long-term economic and financial problems have greatly accelerated under Barack Obama, but our leaders feverishly work to make things look okay in the short-term and so most Americans don’t notice what is happening.
Unfortunately, this Ponzi scheme cannot go on forever and a day of reckoning is coming. And when it arrives, the pain that it is going to cause for ordinary Americans is going to be far greater than most of us would dare to imagine.
Credit to Economic Collapse
In the world of quantum, infinitesimally small particles, weird and often logic-defying behaviors abound. Perhaps the strangest of these is the idea of superposition, in which objects can exist simultaneously in two or more seemingly counterintuitive states. For example, according to the laws of quantum mechanics, electrons may spin both clockwise and counter-clockwise, or be both at rest and excited, at the same time.
The physicist Erwin Schrödinger highlighted some strange consequences of the idea of superposition more than 80 years ago, with a thought experiment that posed that a cat trapped in a box with a radioactive source could be in a superposition state, considered both alive and dead, according to the laws of quantum mechanics. Since then, scientists have proven that particles can indeed be in superposition, at quantum, subatomic scales. But whether such weird phenomena can be observed in our larger, everyday world is an open, actively pursued question.
Now, MIT physicists have found that subatomic particles called neutrinos can be in superposition, without individual identities, when traveling hundreds of miles. Their results, to be published later this month in Physical Review Letters, represent the longest distance over which quantum mechanics has been tested to date.
A subatomic journey across state lines
The team analyzed data on the oscillations of neutrinos — subatomic particles that interact extremely weakly with matter, passing through our bodies by the billions per second without any effect. Neutrinos can oscillate, or change between several distinct “flavors,” as they travel through the universe at close to the speed of light.
The researchers obtained data from Fermilab’s Main Injector Neutrino Oscillation Search, or MINOS, an experiment in which neutrinos are produced from the scattering of other accelerated, high-energy particles in a facility near Chicago and beamed to a detector in Soudan, Minnesota, 735 kilometers (456 miles) away. Although the neutrinos leave Illinois as one flavor, they may oscillate along their journey, arriving in Minnesota as a completely different flavor.
The MIT team studied the distribution of neutrino flavors generated in Illinois, versus those detected in Minnesota, and found that these distributions can be explained most readily by quantum phenomena: As neutrinos sped between the accelerator and detector, they were statistically most likely to be in a state of superposition, with no definite flavor or identity.
What’s more, the researchers found that the data was “in high tension” with more classical descriptions of how matter should behave. In particular, it was statistically unlikely that the data could be explained by any model of the sort that Einstein sought, in which objects would always embody definite properties rather than exist in superpositions.
“What’s fascinating is, many of us tend to think of quantum mechanics applying on small scales,” says David Kaiser, the Germeshausen Professor of the History of Science and professor of physics at MIT. “But it turns out that we can’t escape quantum mechanics, even when we describe processes that happen over large distances. We can’t stop our quantum mechanical description even when these things leave one state and enter another, traveling hundreds of miles. I think that’s breathtaking.”
Kaiser is a co-author on the paper, which includes MIT physics professor Joseph Formaggio, junior Talia Weiss, and former graduate student Mykola Murskyj.
A flipped inequality
The team analyzed the MINOS data by applying a slightly altered version of the Leggett-Garg inequality, a mathematical expression named after physicists Anthony Leggett and Anupam Garg, who derived the expression to test whether a system with two or more distinct states acts in a quantum or classical fashion.
Leggett and Garg realized that the measurements of such a system, and the statistical correlations between those measurements, should be different if the system behaves according to classical versus quantum mechanical laws.
“They realized you get different predictions for correlations of measurements of a single system over time, if you assume superposition versus realism,” Kaiser explains, where “realism” refers to models of the Einstein type, in which particles should always exist in some definite state.
Formaggio, a member of MIT’s Laboratory for Nuclear Science, had the idea to flip the expression slightly, to apply not to repeated measurements over time but to measurements at a range of neutrino energies. In the MINOS experiment, huge numbers of neutrinos are created at various energies, where Kaiser says they then “careen through the Earth, through solid rock, and a tiny drizzle of them will be detected” 735 kilometers away.
According to Formaggio’s reworking of the Leggett-Garg inequality, the distribution of neutrino flavors — the type of neutrino that finally arrives at the detector — should depend on the energies at which the neutrinos were created. Furthermore, those flavor distributions should look very different if the neutrinos assumed a definite identity throughout their journey, versus if they were in superposition, with no distinct flavor.
“The big world we live in”
Applying their modified version of the Leggett-Garg expression to neutrino oscillations, the group predicted the distribution of neutrino flavors arriving at the detector, both if the neutrinos were behaving classically, according to an Einstein-like theory, and if they were acting in a quantum state, in superposition. When they compared both predicted distributions, they found there was virtually no overlap.
More importantly, when they compared these predictions with the actual distribution of neutrino flavors observed from the MINOS experiment, they found that the data fit squarely within the predicted distribution for a quantum system, meaning that the neutrinos very likely did not have individual identities while traveling over hundreds of miles between detectors.
But what if these particles truly embodied distinct flavors at each moment in time, rather than being some ghostly, neither-here-nor-there phantoms of quantum physics? What if these neutrinos behaved according to Einstein’s realism-based view of the world? After all, there could be statistical flukes due to defects in instrumentation, that might still generate a distribution of neutrinos that the researchers observed. Kaiser says if that were the case and “the world truly obeyed Einstein’s intuitions,” the chances of such a model accounting for the observed data would be “something like one in a billion.”
So how do neutrinos do it? How do they maintain a quantum, identityless state for seemingly long distances? André de Gouvêa, professor of physics and astronomy at Northwestern University, says because neutrinos move so fast and interact with so little in the world, “relativistic effects — as in Einstein’s special theory of relativity —are huge, and conspire to make the very long distances appear [to the neutrinos] short.”
“The final result is that, like all other tests performed to date under very different circumstances, quantum mechanics appears to be the correct description of the world at all distance scales, weirdness not withstanding,” says Gouvêa, who was not involved in the research.
“What gives people pause is, quantum mechanics is quantitatively precise and yet it comes with all this conceptual baggage,” Kaiser says. “That’s why I like tests like this: Let’s let these things travel further than most people will drive on a family road trip, and watch them zoom through the big world we live in, not just the strange world of quantum mechanics, for hundreds of miles. And even then, we can’t stop using quantum mechanics. We really see quantum effects persist across macroscopic distances.”
Credit to News MIT