WAS THE TRUE DEFICIT $500 BILLION OR $800 BILLION?

Michael Snyder reported last week the annual deficit had gone up by over $1 trillion. He was wrong. It’s a good headline, but he failed to take into account the impact of the fake budget impasse last year. The government drones at the U.S. Treasury stopped counting the daily increase in the national debt on June 1, 2013 and didn’t resume counting until October 16, 2013, after the new fiscal year began. On that day they added $337 billion to the national debt. The fact is the government continued to function and to spend money every day during the budget impasse. You can find the daily national debt total at this website:

http://www.treasurydirect.gov/NP/debt/current

Over the next month you will hear how Obama has reduced the annual deficit to $500 billion in FY14. Your government keepers reported a deficit of $680 billion in FY13. One little problem. It’s a lie, based on ridiculous government accounting and fake adjustments. Let’s assess the true deficits with some fact finding:

National Debt on 9/30/12 – $16.066 Trillion

National Debt on 9/30/13 – $17.036 Trillion (calculated as $16,738 on June 1, 2013 + ($2.44 billion per day x 122 days)

National Debt on 9/30/14 – $17.824 Trillion

These figures are produced by the U.S. Treasury. Using basic subtraction, you come to annual deficits of:

FY13 – $970 billion

FY14 – $788 billion

It’s also interesting that the national debt jumped by $50 billion on the first day of the new fiscal year, when it averages going up by $2.2 billion per day. The Obamanistas weren’t window dressing the fiscal year just before mid-term elections, were they?

You may have noticed the true deficit in FY13 was 43% HIGHER than the reported figure of $680 billion.

You may have also noticed the true deficit in FY14 will be 56% HIGHER than the CBO’s latest projection of $506 billion.

I sense a trend in fraudulent accounting.

Part of the fraud are the fake Fannie & Freddie “payments” back to the U.S. Treasury from their fake “profits” generated by accounting entries. The $100 billion of “payments” in FY13 and $80 billion of “payments” in FY14 reduced the reported deficits. It’s all part of the plan to manipulate the housing market in order to save Wall Street and the insolvent Fannie and Freddie, which have hundreds of billions in toxic mortgage debt on their balance sheets. The Federal Reserve has the rest on their $4 trillion insolvent balance sheet. The deficit figures also don’t include the $16 billion of USPS losses per year. I wonder who will be bailing them out when they go bankrupt?

When someone quotes you the deficits reported by Obama, ask them whether the interest paid by the taxpayers is on the increase in the reported deficit or on the increase in the national debt. They’ll be confused and indignant.

The national debt stands at $17.873 Trillion. Interest on the debt will top $250 billion this year and surge past $300 billion next year. Does the trend depicted on the chart appear sustainable? Based on conservative assumptions, interest as a percentage of total federal spending will increase from 6% to 11.5% by 2019. And that is without a surge in interest rates.

And now for the coup de grace. The Federal Government uses cash basis accounting. If your keepers were forced to use GAAP based accrual accounting, the annual deficit reported would exceed $6.6 Trillion per year. That isn’t a typo. Corporations must record their future promises as an expense. Your Federal Government just pretends they don’t exist. That is how you end up with $200 trillion of unfunded liabilities.

This will surely end well.