March 2012 deficit recently rolled in at a hefty $198.2 trillion. This follows on the heels of the “all-time record high” deficit of $232 trillion in February. This brings the total to $779 trillion through the first 6 months of FY 2012.
WSJ 2-1-12: The “federal debt has increased by $5 trillion in a mere 4 years.” National debt held by the public (CBO estimate) “will climb this year to 72.5% of the economy from 40.3% in 2008. This isn’t as high as Italy or Greece, but it’s rising fast toward the 90% level that begins to debilitate an economy. [Note – the “national debt held by the public” is comprised of U.S. debt securities held by parties outside of the government itself. The remainder of U.S. debt is held by intragovernmental agencies – for example there are Treasury IOU’s sitting in the Social Security trust fund.]
Government revenues “have been in the tank for five years. In 2012 revenues will hit $2.52 trillion down from $2.57 trillion in 2007. Revenues are still only 16.3% of GDP, about two percentage points below the norm.”
Tax revenues flowing in to the U.S. Government are anemic.
American families remain ‘mired’ in “Household Debt” (See the latest Quarterly )
February 27, 2012 Federal Reserve Bank of New York report:
Mortgage and home equity lines of credit (HELOC) balances fell a combined $146 billion, a sign that consumers continue to reduce housing related debt.
After a mild uptick in the third quarter, total household delinquency rates resumed their downward trend in the fourth quarter. The report finds that $1.12 trillion of consumer debt (or 9.8 percent of outstanding debt) is currently delinquent, with $824 billion seriously delinquent (at least 90 days late).
Meanwhile about 2.2 percent of mortgage balances transitioned into delinquency during the fourth quarter, resuming the recent trend of reductions in this measure. However, delinquency rates remain elevated compared to historical figures.
“While we continue to see improvements in the delinquent balances and delinquency transition rates this quarter, there has been a noticeable decrease in the rate of improvement compared to 2009-2010,” said Andrew Haughwout, vice president and economist at the New York Fed. “Overall it appears that delinquency rates are stabilizing at levels that remain significantly higher than pre-crisis levels.”
Other highlights from the report include:
- Mortgage and HELOC balances on consumer credit reports fell $134 billion (1.6 percent) and $12 billion (1.9 percent) respectively.
- Non-real estate indebtedness rose $20 billion (0.8 percent) during the quarter, resuming a trend of increases.
- Aggregate credit card limits rose by $98 billion (3.6 percent), resuming the trend of increases observed in the first half of the year.
- Open credit card accounts increased by 3 million to 386 million.
- Credit account inquiries within six months, an indicator of consumer credit demand, increased (2.7 percent) for the third quarter in a row.
- Roughly 289,000 individuals had a foreclosure notation added to their credit report in Q4, a 9.5 percent increase from the third quarter.
- Student loan indebtedness increased slightly, to $867 billion.
It is time to bring in the Leviticus 25 Plan.
America is ready.