THE UNITED STATES IS INSOLVENT
THE UNITED STATES IS INSOLVENT
by Dr. Chris Martenson
The End of Money
December 17, 2006
Prepare to be shocked.
The US is insolvent. There is simply no way for our national bills to be paid under current levels of taxation and promised benefits. Our federal deficits alone now total more than 400% of GDP.
That is the conclusion of a recent Treasury/OMB report entitled Financial Report of the United States Government (Download here: http://fms.treas.gov/fr/06frusg/06frusg.pdf ) that was quietly slipped out on a Friday (12/15/06), deep in the holiday season, with little fanfare. Sometimes I wonder why the Treasury Department doesn’t just pay somebody to come in at 4:30 am Christmas morning to release the report. Additionally, I’ve yet to read a single account of this report in any of the major news media outlets but that is another matter.
But, hey, I understand. A report is this bad requires all the muffling it can get.
In his accompanying statement to the report (Download here: http://fms.treas.gov/fr/06frusg/06gao2.pdf ), David Walker, Comptroller of the US, warmed up his audience by stating that the GAO had found so many significant material deficiencies in the government’s accounting systems that the GAO was “unable to express an opinion” on the financial statements. Ha ha! He really knows how to play an audience!
In accounting parlance, that’s the same as telling your spouse “Our checkbook is such an out of control mess I can’t tell if we’re broke or rich!” The next time you have an unexplained rash of checking withdrawals from that fishing trip with your buddies, just tell her that you are “unable to express an opinion” and see how that flies. Let us know how it goes!
Then Walker went on to deliver the really bad news:
Despite improvement in both the fiscal year 2006 reported net operating cost and the cash-based budget deficit, the U.S. government’s total reported liabilities, net social insurance commitments, and other fiscal exposures continue to grow and now total approximately $50 trillion, representing approximately four times the Nation’s total output (GDP) in fiscal year 2006, up from about $20 trillion, or two times GDP in fiscal year 2000.
As this long-term fiscal imbalance continues to grow, the retirement of the “baby boom” generation is closer to becoming a reality with the first wave of boomers eligible for early retirement under Social Security in 2008.
Given these and other factors, it seems clear that the nation’s current fiscal path is unsustainable and that tough choices by the President and the Congress are necessary in order to address the nation’s large and growing long-term fiscal imbalance.
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Re: THE UNITED STATES IS INSOLVENT
It doesn't take a economic genius to understand that America is headed into the category of a third world country. In order to accomplish this, ties must be severed with allies and the isolation begins. We will be seen as an "enemy" and not a friend. This is taking place at present.
Collapsing the dollar, collapsing the stock market; is this not the way the "money changers" were given power in the first place to remove, under the constitution, the ability for Congress to print money?
This is written in the "books." To "collapse the economy."
They control the economy and like most everything else it is an illusion.
The United Nation's plays a great role in creating isolation and starvation. Cutting countries off from the rest of the world for their "leaders" bad deeds. As usual, the so-called "corrupt" government is to blame for the sanctions that have been placed upon the country. In reality, the puppetmasters have lead them to this end.
Desperation follows, populations suffer and long after we are gone, civilizations disappear. And then what will be written about them?
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