Who's gonna pay?

The total exposure of the US government to the financial crisis could hit $23.7 trillion, according to a watchdog report. Neil Barofsky, overseeing the Troubled Asset Relief Programme (Tarp), made the estimate in prepared remarks to a House of Representatives committee. The worst-case estimate represents the maximum exposure if all parties offered support requested maximum assistance. The figure includes all government and Federal Reserve initiatives.
That’s a huge amount of assets the US government is now involved in.

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The taxpayer is giving some money away.

The terms for walking out of GM are published here.
Taxpayers are paying the following:

- GM is offering $20,000 cash and a $25,000 car voucher to production workers who decide to retire with their benefits.
- For skilled-trades workers, the cash portion of the retirement package is $45,000 with the same car voucher.
- For those not eligible to retire, GM also is offering more cash to walk away and sever all ties with the company, along with the $25,000 car voucher.
- Employees with less than 10 years could get $45,000. Those with at least 10 years but less than 20 are being offered $80,000. For those with 20 years or more, it’s $115,000.
- Those with 28 or 29 years at GM are being offered a bridge to retirement, with the company providing a monthly gross wage of $2,850 or $2,900 until qualifying for retirement.

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What's brewing?

We read something interesting.
It was coming from tiny Belgium where the Minister of Foreign Affairs basically said in a speech to his diplomats that a new era is coming. A new Bretton-Woods is prepared to enter centre stage in a couple of months.
Maybe he’s right.
Look around. Political activity is very high. Obama is travelling like mad all over this planet, and one can say that this is only normal after his inauguration, the reception is always very warm and enthusiastic.
And I remember that the G20 produced something very tangible. Not a general vague declaration, but something as a blacklist of countries which are messing up with their taxes.
Very strange indeed.

Yes, maybe something big is coming up.

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And we will all go down together...

My favorite B.J. song;

Nothing is as precious as government debt, because it belongs to all of us.
And the good news is: more is coming.

The IMF published a table were they made projections how this debt will evolve in the coming years. The figures have to be read as debt as a % of GDP. I don’t think the guys on the photo should smile like this with this kind of future developments

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