New Grads Have Piled Up Debt That They Have no Way to Pay

Nears 1 Trillion total aggregate… Sure am glad Obama fixed the problem. The debt is all yours now!!! He spent your future…

Yeah it’s free tell me how that works out for you suckers. Who you gonna blame? You allowed him to bamboozle you didn’t you. The old teleprompter two step.

Nope just a tax and spend liberal.

70% of graduates had at least some debt according to the latest poll from Fidelity Investments but as the Wall Street Journal reports the average student-loan debt for a borrower who received a bachelor’s degree in 2013 is $30,000 – an all-time record. With $986 billion of outstanding student loan debt (up 50% from Q1 2009) and unemployment rates running at or near all-time highs for the 16-24 year old cohort in this nation, it is little surprise that delinquencies are surging. The unemployment rate among graduates is 7.1% (which is considerably worse than it looks given that many are stuck in low-paid jobs) but it is those who don’t complete college that face the greatest burden – the median annual income of a non-completer was $25,000 (compared to $33,900 for a degree holder), less than the average student loan debt. As the WSJ notes though, the 2013 class is unlikely to hold the ‘most indebted class ever’ title for long as 2014 enrollments and tuition costs look set to continue the 20 year trend…

What job? Better pisk your debt more carefully. I think “women studies degrees are losers. Among about half the coursework people take in college is worthless. Become an engineer, any engineer. Or just go get a job…

Unemployment among new grads is 53% when you talk about employed in your degree speciality.

More than half of America’s recent college graduates are either unemployed or working in a job that doesn’t require a bachelor’s degree, the Associated Press reported this weekend. The story would seem to be more evidence that, regardless of your education, the wake of the Great Recession has been a terrible time to be young and hunting for work.

Me I worked my way through college, and had no debt. It took me seven years to get my BSEE degree but so what. No debt.

Welcome to the latest Obama lie. Got you, didn’t he.

Old vs Young Workers … AMNESTY Just Make Things Worse For The Young Workers

Yes most illegals have no education, but it erodes the overall labor pool available for the young, and reduces salaries for all.

Nearly half, 42 percent, of recent graduates expect they will need an advanced degree to further their career and almost a quarter are already planning to take graduate courses. More degrees, more debt, more dead end opportunities for a generation that is stuck in place not because it is underqualified, but because of barriers to entry erected by those already in the workforce, especially those aged 55 and over who courtesy of Bernanke’s ZIRP4EVA can’t afford to retire, and who as the following chart shows are employed more now than ever. The losers: those aged 20-24 whose employment level has not budged in the past four decades despite a demographic boom that puts millions more into precisely this age cohort with every passing year. Where are those who are not in the labor force (and not playing Call of Duty)?

Why in college of course.

Young vs Older workers

More from Reuters:

 ”For our nation’s youngest workers, as well as for the workforce at large, there is a real need for employers to reexamine how they hire, train and develop their employees,” said Katherine Lavelle, of the global management consulting firm Accenture, which conducted the survey.

More than half of graduates said it was difficult finding a job, but 39 percent were employed by the time they left college. Sixty eight percent said they are working full time, while 16 percent are in part-time positions.

The top industries that graduates wanted to work in were education, media and entertainment and healthcare.

Just over half, 53 percent, of graduates found full-time jobs in their field of study.

In addition to being underemployed many graduates thought they would have done better in the job market if they had studied a different major, and more than half also intended to go back to school within the next five years.

The biggest disappointment: the difference between perceptions about wage potential and reality.

 The survey uncovered a gap between what students expect to earn in their first job and their actual salary. Only 15 percent of this year’s graduates think they will earn less than $25,000 but a third of recent graduates said they make that amount or less.

Will any of this change the sad reality where even the hope of a lucrative future for most involves drowning in debt? Of course not. After all in the new normal, “money dilution is prosperity” and “debt is wealth.” If this is the case for sovereign nations and corporations, why not for the individual as well. Because it is not as if anyone expects any of the record outstanding debt to ever be repaid.

Debt Is Not Prosperity — Hard Landing Ahead

As FDR learned the hard way, debt cannot make a country prosperous. Socialism is always a downhill ride, until the money runs out, then the suffering sets in. Jimmy Carter, FDR little brother, was just another stupid Democrat socialist. Now this one thinks, that if they manipulate the numbers better, the stupid will follow him off the cliff.

Careful kiddies, you might just learn something … inflation AHEAD. It’s going to be a hard landing.

So it’s off the cliff we go, hi ho, hi ho …

After your parents run dry, then what???

Economic activity as measured by human action - the real source of all wealth

Cyprus Border Guards Seizing Money From Suitcases

The shape of things to come to America, and soon.

Customs officials said border guards at the counrtry’s air and sea ports have been instructed to check baggage and monitor whether travelers are taking more than €10,000 (about $13,000) out of the country. Any amount above that €10,000 threshold can be confiscated.

Still, Doubts?

And it is coming to America..

What I find most interesting about this story are the repeated assurances – often delivered with a sneer at doomsday prepper hysteria – that nothing of the sort could ever happen in the United States. But every article pooh-poohing the “hysterics” mentions something our government is doing, or has done, that echoes the crisis in Cyprus. They talked about raiding pension funds and stuffing them with government I.O.U.s; American liberals are salivating at the thought of doing the same to our 401k accounts….It all boils down to governments making promises they can’t keep… and insisting those promises are still valid, long past the point of no return, unto the point of systemic collapse.

At some point debts must be paid, and ugly debts results in ugly solutions. No one, I don’t think, really imagined France would simply seize all of the property owned by the Catholic church to pay its debts in 1792 … until they did.

Socialism is fine until they run out of other people’s money to give away, then Katy bar the door, err check their suitcases.

Think who set up the ponzi scheme SSI, and why? Don’t you think they knew it was going broke when they did it? How many of these promises that can’t be kept? Oh that would total in the multiple tens of trillions. The actuary says SSI is not sustainable.

Cyprus

Why? Because it’s only fair, as the second coming of the glorious global socialist revolution has made it all too clear.

And remember this: there are no longer any rules, and any assets, any “wealth” saved, stored, and hidden is now fair game in the global forced wealth reallocation “game.“

 

Mounting Student Loans a ‘Debt Bomb’ Waiting to Explode

Low information Obama voters take note … It’s your future Obummer is destroying.

It’s a vicious cycle. Many families in this country cannot afford the skyrocketing cost of higher education without student loans. But many graduates cannot find a job and cannot pay off the loans. As a result, they wind up in a much deeper hole (as the interest and collection fees accrue) with no way out.

Student loan debt in the U.S. now totals more than $1 trillion. That’s more than all the outstanding credit card debt in the country.

A recent report by the National Association of Consumer Bankruptcy Attorneys found that both students and parents are borrowing at record rates.

College seniors who graduated with student loans in 2010 owed an average of $25,250, up five percent from the previous year. Parents had an average of $34,000 in student loans for their children. The report says the number of these parental loans has jumped 75 percent since 2005-2006.

“These are enormous numbers,” says Ike Shulman, a bankruptcy attorney in San Jose, Calif.  “They’re basically setting us up for having a large number of fellow citizens become economically non-functional for the rest of their adult lives.” 

Excerpt NBCNews

Britain’s Credit Rating Downgraded From AAA to Aa1

Well had to happen, We are next???

The Telegraph writes:

The Government’s economic strategy has been dealt a serious blow after a leading credit ratings agency downgraded UK debt on its expectation that growth will “remain sluggish over the next few years”.

Moody’s announced on Friday night that it had cut the Government’s bond rating one notch from ‘Aaa’ – the highest possible level – to ‘Aa1’.

The move is a significant setback for Chancellor George Osborne, who has faced criticism that his strategy for dealing with UK’s huge debt burden is failing to deliver.

Moody’s pointed to “continuing weakness in the UK’s medium-term growth outlook, with a period of sluggish growth which [it] now expects will extend into the second half of the decade”.

The credit ratings agency also noted that the Government’s debt reduction programme faced significant “challenges” and that the UK’s huge debts are unlikely to “reverse before 2016″.

Moody’s said that despite considerable structural economic strengths, growth is expected to be sluggish due to a combination of weaker global economic activity and the drag on the UK economy “from the ongoing domestic public- and private-sector deleveraging process.”

Obama is Bankrupting Our Youth and Unborn

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

That was Senator Obama in 2006 explaining to the Senate why he voted against raising the debt ceiling.  Today, a couple of debt ceilings later and after doubling our government debt, President Obama wants to raise the ceiling! Plus, he labels those citizens demanding spending cuts as endangering America – holding a gun to the head of the American people.  Of course, the top Senate Democrats – Reid, Durbin, Schumer and Murray – have sent a letter to the President telling him to use any means possible to extend the debt ceiling.

“…must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis — without congressional approval, if necessary.”

This is nonsense!  America has plenty of money to pay interest and debts currently due.  So, what do Democrats want?  First, the want more taxes to save ObamaCare, which is proving to be veryexpensive.  Second, they want no cuts or alterations to Social Security, Medicare and Medicaid.  Third, they want to not be forced to follow the law and present a budget, which would reveal their total indifference to being fiscally responsible.

When Will Death Spiral States Impose Taxes On Fleeing Citizens?

Exit taxes??? Taxes for those who flee.

Now they talk about imposing taxes on those who leave, instead of trying to figure out why they leave and try and fix that.

Our property is not ours, our labor are not ours, we are devolving into the ways of the old Soviet Union. Equal misery to all, the line forms over there, if we have any food left you get an equal shot at it. Just like the bread lines of the Soviets.

We now work in service for the government,for their pleasure. Not at ours….

All money is governments. Which is why they better get the guns right now!!!

One of the most fascinating characteristics of government borrowing – whether at the local, state, or federal level – is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it’s customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality’s estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.

Imagine if that type of tax “evasion”, ie moving … were eliminated.

How would it change America?

Government debts are accrued on your behalf by elected officials for whom you had a chance to vote, all supposedly representing your interests. In a democracy, all citizens are obliged to pay the government’s bills as determined by the duly empowered taxing authorities – regardless of whether they voted for a particular officeholder or not. What’s to stop legislators from passing laws that make debt obligations due and payable by any citizen who decides to leave for another jurisdiction? After all, they don’t hesitate to take your money when you die.

Mayors and governors of most tax-and-spend, heavily unionized, low-growth cities and states are both desperate for revenue and tired of watching disgruntled citizens vote with their feet. Think how politically attractive it would be for them to make “economic deserters” pay their “fair share” of old debts. I can see the arguments already: “You can’t move away from credit card debt or commercial debt, so why should government debt be so easy to dodge?” Politicians could easily win kudos from both public employee unions and the overtaxed residents left behind, for the mere cost of enraging emigrants who won’t be around to exact retribution at the next election.

And can’t you just see the progressive commentariat lining up behind a movement designed to deter well-heeled blue state residents from seeking refuge in those despicable red hinterlands? Like Glenn Close rising from the bathtub to take one more stab in Fatal Attraction, don’t be surprised when death-spiral states resort to exit taxes as a last ditch effort to forestall their impending bankruptcies.

Read more …

Here we go again: Government weeks away from hitting debt ceiling, Trillions More Up In Smoke

Congress must raise the debt ceiling before the end of February, and possibly sooner. If it doesn’t, the United States risks defaulting on its payments to creditors.

That’s the key takeaway from a new report released Tuesday by the Bipartisan Policy Center.

The group, an independent think tank, analyzed patterns in the Treasury Department’s monthly cash flow and obligations to assess just how much time it has to continue paying the country’s bills in full and on time if lawmakers don’t raise the legal borrowing limit.

The debt ceiling is currently set at $16.394 trillion. By the end of last week, the debt subject to that limit had reached $16.268 trillion.

There won’t be that luxury this time. The cliff approaches…

This is the phony number the real number is around $86 Trillion. About $278,000 for every US citizen regardless of age…