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By Tyler Durden

Only a few days after Trump’s inauguration ceremony, the U.S. National Debt will creep across the important psychological barrier of $20 trillion.

It’s a problem that’s been passed down to him, but, as Visual Caitalist's Jeff Desjardins notes, it certainly puts the incoming administration in a difficult place. The debt is burdensome by pretty much any metric, and the rate of borrowing has exceeded economic growth pretty much since the late 1970s.

How Trump deals with this escalating constraint will be a deciding factor in whether his administration crashes and burns – or ends up re-positioning America for greatness.

Donald Trump’s $20 Trillion Problem

Partisans will squabble about who added what to the mounting debt, but the reality is that none of that really matters. Both parties have kicked the can down the road for the last 40 years, and that has culminated in the current situation:

Source: The Money Project

Back in 1979, the debt-to-GDP ratio was a modest 31.8%, and the federal government only had an outstanding tab of $826 billion. Fast forward to today, and the perpetual borrowing has added up.

The debt-to-GDP is now 104.2%, with the total debt burden nearing the $20 trillion mark.

Source: The Money Project

In absolute terms, the debt is the highest it has ever been. Using the common measure of debt-to-GDP, the debt is the highest it’s been in 70 years. The last time it soared past the 100% mark was during the final year of WWII.

Granted, the situation isn’t as bad as Greece, Cyprus, or Japan – but it’s getting there:

Source: The Money Project

In terms of debt-to-revenue, a measure that compares the national debt to the amount of taxes taken in by the federal government, the U.S. has the 2nd highest debt out of 34 OECD countries:

Source: The Money Project

On a “per person” basis, each person in the U.S. owes $61,300 – the second highest in the world. Per taxpayer, however, that amount balloons to $167,000.

Changing Rhetoric

So what does Trump think of all this debt business? It’s hard to say, because his rhetoric has changed.

At the start of his campaign, he made it clear that debt would be a top issue for his administration. In February 2016, Trump said that the U.S. was becoming a “large-scale version of Greece” and that tackling the debt would be “easy” with a more dynamic economy. In April 2016, he said he could pay off the debt after eight years in office.

This rhetoric aligns with the official GOP platform, which says that the national debt has “placed a significant burden on future generations”, calling for a “strong economy” and “spending restraint” to pay it down.

But since then, Trump’s views may have changed.

His most recent economic plans include $1 trillion in infrastructure and $5 trillion in tax cuts – and …read more

Source: Visualizing Donald Trump’s $20 Trillion Problem

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By Tyler Durden

How America became 'exceptional'…

Source: The Burning Platform

* * *

Of course, as we noted previously, our system of education is not entirely to blame. The truth is that young Americans spend far more time consuming media than they do hitting the books, and what passes for “entertainment” these days is rapidly turning their brains to mush.

According to a report put out by Nielsen, this is how much time the average American spends consuming media on various devices each day…

Watching live television: 4 hours, 32 minutes

Watching time-shifted television: 30 minutes

Listening to the radio: 2 hours, 44 minutes

Using a smartphone: 1 hour, 33 minutes

Using Internet on a computer: 1 hour, 6 minutes

When you add it all up, the average American spends more than 10 hours a day plugged into some form of media.

And if you allow anyone to pump “programming” into your mind for 10 hours a day, it is going to have a dramatic impact.

In the end, I truly believe that we all greatly underestimate the influence that the mainstream media has on all of us. We willingly plug into “the Matrix” for endless hours, but then somehow we still expect “to think for ourselves”.

There are very few of us that can say that we have not been exposed to thousands upon thousands of hours of conditioning. And all of that garbage can make it very, very difficult to think clearly.

It is not because of a lack of input that we have become so stupid as a society. The big problem is what we are putting into our minds.

If we continue to put garbage in, we are going to continue to get garbage out, and that is the cold, hard reality of the matter.

…read more

Source: 50 Years Of Teaching Math In ‘Exceptional’ America

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By Tyler Durden

Submitted by Finian Cunningham via The Strategic Culture Foundation,

Eight straight years of warmongering come to an end as US President Barack Obama bows out with his “farewell to the nation? speech this week, as fawning American media dubbed his valediction.

In reality, Obama’s outgoing address should have been billed as a “farewell to arms? made by arguably one of the most belligerent presidents to ever have occupied the White House.

Only in exceptionally delusional America could such a pernicious paradox be presented as something honorable and sentimental.

Obama, the 44th US president, may have been the first black president and winner of a Nobel peace prize during his first year in office in 2009. But apart from those dubious accolades – championed by supposedly liberal Hollywood celebrities and media pundits – his actual record in office is one of blood-soaked disgrace.

Instead of ending American overseas wars as he had promised back in 2008, Obama expanded on his predecessor George W Bush’s criminal foreign interventions. At least seven countries – Iraq, Afghanistan, Pakistan, Libya, Syria, Yemen and Somalia – have been routinely bombed under Obama’s watch as the US Commander-in-Chief. That’s one repugnant record.

Last year alone, the US military reportedly dropped over 26,000 bombs around the world killing countless thousands of people, the exact number buried under official secrecy and American mainstream media indifference. At that rate, American anti-war campaigner Medea Benjamin estimates that US forces deployed three bombs every hour of every day for the whole of 2016. This death from the skies included Obama’s personal ordering of drone assassinations during his weekly Terror Tuesday briefings from Pentagon chiefs, the use of which increased 10-fold under his command, killing thousands of innocent civilians as “collateral damage?.

In Yemen, one of the poorest countries on Earth, where Obama fully backs an ongoing Saudi air war, it is reckoned that a child dies every 10 minutes from the American-supplied bombing campaign and blockade. Hardly a word about this US-backed genocide is permitted to intrude into public awareness by the Western corporate-controlled media.

Under the supposed Nobel peace laureate, the United States has sold an all-time record of $115 billion-worth of weaponry to Saudi Arabia – one of the most repressive regimes in the world – which has in turn fueled jihadist terrorism across the Middle East, Central Asia, Africa and Europe.

In Syria, just one of the countries to be afflicted by Obama’s policy of covert collusion with jihadist terrorism for regime-change machinations, the death toll is estimated to be around 400,000, with millions more displaced by the US-led proxy war that began in March 2011.

That war unleashed by the Obama administration to oust President Bashar al-Assad has only been arrested because of Russia’s military intervention at the end of 2015. At every step, Obama and his top diplomat John Kerry have sought to thwart Russia’s efforts to salvage the country from jihadist terror proxies. With warped logic, Obama and his British and French allies – all sponsors …read more

Source: Obama’s "Farewell To Arms" As War Presidency Ends

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By Michael Snyder

January 20th cannot come soon enough.  Instead of stepping back and trying to ensure a smooth transition for Donald Trump, Barack Obama has decided to go hog wild and use every ounce of presidential power still available to him.  He has been establishing a bunch of new national monuments, he just stabbed Israel in the back at the United Nations, and on Thursday he even took time to give Joe Biden a Presidential Medal of Freedom.  But one of the things that has people the most concerned is his endless provoking of Russia.  Every few days it seems like Obama is doing something else to aggravate Russia, and if he wasn’t leaving office in about a week I am sure that the mainstream media would be full of speculation about a possible war.

Lame duck presidents are not supposed to make risky moves like this once a new president has been elected.  On Thursday, we learned that U.S. troops have been permanently deployed to Poland for the very first time…

American soldiers rolled into Poland on Thursday, fulfilling a dream some Poles have had since the fall of communism in 1989 to have U.S. troops on their soil as a deterrent against Russia.

Some people waved and held up American flags as U.S. troops in tanks and other vehicles crossed into southwestern Poland from Germany and headed toward the town of Zagan, where they will be based. Poland’s prime minister and defense minister will welcome them in an official ceremony Saturday.

Poland was once a key member of the Warsaw Pact alliance, and the Russians are quite alarmed that U.S. troops will now be stationed so close to the Russian heartland.  The following comes from ABC News…

“These actions threaten our interests, our security,” President Vladimir Putin’s spokesman Dmitry Peskov said Thursday. “Especially as it concerns a third party building up its military presence near our borders. It’s not even a European state.”

And it has also been announced that NATO troops will arrive in Lithuania in late January.  If you will remember, Lithuania was actually part of the Soviet Union during the Cold War.

All of a sudden, Russia has become enemy number one.  Barack Obama and Hillary Clinton say that Russia is to blame for Clinton’s election loss, and so at the end of December Obama expelled 35 Russian diplomats from the country.

That is the sort of thing that you do before a war starts.

Over in Europe, they are so freaked out about potential Russian interference in their elections that they are “erecting defenses to counter possible Russian cyber attacks”…

Nations in Europe, where Germany and France this year hold elections, are erecting defenses to counter possible Russian cyber attacks and disinformation to sway Western politics, but intelligence experts say this might be too little and too late.

The issue of Russian “influence operations” has taken on new urgency after U.S. intelligence agencies released a non-classified assessment that President Vladimir Putin ordered a campaign to move the U.S. election in …read more

Source: Why Is Obama Moving Troops Into Poland And Provoking A War With Russia Right Before The Inauguration?

    

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Nintendo revealed a range of details and software about the Switch, a handheld system that can easily transform into a console for the home. …read more

Source: Nintendo Switch will cost $299.99 when it goes on sale

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By Tyler Durden

A couple of weeks ago we highlighted the protests that had engulfed Mexico after the finance ministry announced plans to raise gasoline prices by 20.1% starting January 1st. Amid the chaos, the country’s powerful Jalisco New Generation cartel threatened to to burn down gas stations as retribution for taking advantage of “the majority of the people who don’t make even a minimum wage.”

But before readers blow this off as just another protest by an angry population which fails to grasp the “global deflationary collapse” while focusing on “fringe, outlier events” – at least in the words of central bankers – things suddenly got serious when none other than the country’s powerful Jalisco New Generation cartel has entered the fray, threatening to burn gas stations in response to the price hikes, according to Jalisco authorities cited by TeleSur.

“They are speculating in order to obtain million dollar profits from the majority of the people who don’t make even a minimum wage, we have already realized that the (shortage) of fuel is because dealers don’t want to sell fuel unless they can do so at a profit, all of our people are now ready to start the mission,” the Mexican drug cartel stated in a WhatsApp message circulating in Jalisco.

“The CJNG, in support of the working class, commits itself to making burn all the gasoline stations that to December 30 of the current year, at 10:00 p.m.” — before the price increases go into effect — “have not normalized the sale of fuel at the fair price,” the message said, according to the Mexican news outlet Aristegui Noticias.

Alas, after the knee jerk reaction to riot subsided, which would have only resulted in gas prices soaring even higher anyway, Mexico’s drug cartels did what any clever black market entrepreneurial organization would do: they decided to steal the gasoline and sell it themselves. With a modest upfront capital investment of $5,000 – $8,000, the cartels have realized they can tap directly into state-owned gas pipelines and withdraw seemingly unlimited supplies of gasoline which they then sell along the highway at a discount to official government prices. It’s a win-win situation whereby the drug cartels make 100% profit margins and citizens get “cheap” fuel.

The black market is booming. Several states experienced gasoline shortages at the end of last year as more thieves tapped into state-owned Petróleos Mexicanos (Pemex) pipelines. The pilfered fuel was sold to drivers hoping to save money. Pipeline theft in 2015 increased sevenfold, to more than 5,500 taps, from just 710 in 2010. Pemex attributes the company’s 12-year slide in crude production in part to the growth in illegal taps.

The drug cartels have turned to fuel theft as a side business worth hundreds of millions of dollars each year, and crime groups focused solely on gasoline robbery have sprung up, says Alejandro Schtulmann, president of Empra, a political-risk consulting firm in Mexico City. “You only need to invest $5,000 or $8,000 …read more

Source: Mexican Drug Cartels Looting State-Owned Gas Pipelines For Black Market Sales

    

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