Submitted by Simon Black via SovereignMan.com,
Every year around this time the US federal government releases an annual financial report to the public.
It would be hilarious if the numbers weren’t actually true.
Just like Apple or Exxon, the government’s annual report contains several important financial statements and detailed commentary about their finances and operations.
But unlike Apple, Exxon, the government can’t manage to turn a profit. Ever.
According to this year’s report, the government’s net loss “more than doubled, increasing $533.2 billion (103.7%) during [Fiscal Year] 2016 to $1.0 trillion.”
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
It’s extraordinary that they lost $533 billion in 2015, let alone a full trillion in 2016.
Bear in mind, there was no major wars, recessions, or crises to fight.
What did you really receive in exchange for that trillion-dollar loss?
Brand new highway system? Giant tax rebate?
Nope. None of the above.
The sad reality is that it now costs the government so much to run itself, along with paying massive interest on the debt and supporting all of its entitlement obligations, that they lose $1 trillion even in a “normal” year.
What will happen in a bad year?
Then there’s the issue of the government’s “net worth”.
After adding up all of its assets (like tanks, aircraft carriers, government buildings, etc.) and subtracting liabilities (the national debt), the government’s “net worth” was MINUS $19.3 trillion at the close of the 2016 fiscal year.
That’s worse than 2015’s NEGATIVE $18.2 trillion, which was worse than 2014’s NEGATIVE $17.7 trillion, which was worse than 2013’s NEGATIVE $16.9 trillion.
The US federal government is insolvent, plain and simple.
This isn’t some wild conspiracy theory. It is a statement of fact based on publicly available data published by the US government itself.
It’s concerning that the government of the largest economy in the world is bankrupt.
But it’s even more concerning that more people aren’t concerned.
Naturally most of us have been programmed to believe for decades that the US government is rich and always pays its obligations.
This is a dangerous fantasy.
Yes, the government has been able to continually destroy its finances for years without consequence.
And for that accomplishment they should be awarded some special Nobel Prize in Ponzi Schemes.
But history is packed with examples of once-dominant empires who eventually declined under the weight of their unsustainable finances, from the French monarchy to ancient Rome.
Are we really supposed to believe that this time is any different?
Are we really supposed to believe that the US government can continue to indefinitely lose $1 trillion dollars per year without consequence?
Sure, it’s great to hope for the best. And maybe, just maybe, they manage to fix everything.
But it would be dangerous to bet everything you’ve ever earned or plan to achieve on such an unreasonable expectation.
When nations go broke, there are consequences. Simple.
This isn’t some earth-shattering concept. It’s common sense.
And once again, history is generous with examples, from the nationwide bank account freeze in Cyprus in 2013, to Iceland’s capital controls following the 2008 crisis, to the wage and price controls of Emperor Diocletian in ancient Rome.
In each of those instances there were probably countless people who either chose to be willfully ignorant or simply hoped that their politicians would fix everything.
Rational people don’t choose to be ignorant, especially when the government itself puts this data in black and white.
Nor do rational people bet everything on hope.
They have a Plan B. And later this week we’ll discuss some key elements of yours.
$1 trillion dollars is almost exactly $3,000 per resident of the United States. The national debt would therefore be about $60,000 per capita. Not an insurmountable sum even for the average income. It would be about the same as paying off two midsized autos over your working life. That assumes, of course, that we stop digging but we can’t because that negative $3,000 per year is what is costs to keep the deadbeats, the scum and the parasites going. They are 50% of the population and try and trim the SSDI checks, the SNAP cards, the public sector pensions by $3000 per year and this country would explode. That is why nothing is done.
Correct! absolutely! You are assuming that a broke ass crack head in any one of your former great productive cities can afford $60,000 debt. the truth is there are the debit folk (who lean on your tax dollar) and Credit folk called “lifters” (those get out of bed and pay through the ass every day). Frankly I pay one third of my income in tax and then Praise the Lord of lawful legislature, I pay Sales tax, excise, bank fees, local taxes, Fuel taxes, state fines for farting in bed, dog licensees, alimony, child care, Medical deductibles and for infinitum I pay…….. Frankly I am an ATM for the for the lazy .. Pull my plug I beg you for I am tired and worn.
I figure my part of this theft is upwards of 190% of what I own and they will come for that when it riots.
You’re thinking that it is the people that not only don’t pay taxes but also consume tax revenues are going to be involved in paying the debt?
Or that government employees who are a net tax consumer can be figured in?
It’s the productive industry non government workers that are going to be the ones that is falls on to make good on the debt and there are nowhere near 300 million of them.
Trump needs to do this immediately:
No entitlements for illegal immigrants of any kind.
Stop immigration for people who do not have marketable skills, and do not have atleast the equivalent of a HS education.
Entitlements: SNAP / Section 8 / public assistance – cut 10% a year. SSDI people must have their cases reviewed.
SNAP and other plastic cards can only be used for food. Food does not include soft drinks and snack food.
If you want your SNAP / Section 8 / public assistance you need to show up for a job or work program.
We will not pay additional benefits for more children when you are receiving entitlements.
Nonono, the biggest welfare queen is the Pentagon. Do the arithmetic!
Start there!! All the other shit is distraction and meaningless.
Do I like welfare? Fuck no. But that’s not the point. Let’s tackle the BIG problems first.
Two thirds of NATO is payed by us, that is where a lot of what you’re calling welfare to the Pentagon goes.
It helps finance European socialism by sparing them the expense of their own defense, they couldn’t do it without us.
Get rid of that and you will reduce our military expenditures to a very manageable level.
Reminds me of the old song, “It’s Just A Matter Of Time”.
Nearly $20T in debt when the economy is supposedly humming alone, unemployment is low (or so they say), and no major wars. Just the everyday work of our government spending $1T a year more than they take in. We are truly f__ked!
Unfortunately, no amount of nibbling around the edges will solve the problem. The problem will solve itself with bankruptcy, i.e., the US dollar becomes worthless or massive inflation which results in the US dollar becoming worthless.
Hang onto your hats and asses, we are in for an exciting ride the next few years. And, of course, it will all be blamed on Trump.
The interest on the debt is around $450B. Currently, the weighted average interest rate is 2.20% which keeps everything in tolerance. However, interest rates are rising so expect the Treasury to use more short tern debt to finance the deficit. The Treasury annually collects in round numbers $3.5T. We spend $4.2T. 2016 was an exception. The SHTF around 2026. SS, Medicare, and the DOD consume 70% of the $4.2T that is spent. By 2026, the interest on the debt will exceed 40% of the amount collected by the Treasury. By 2026, the debt will be over $45T. By that time, the interest on the debt will exceed $1.5T. The debt then will start to snowball. Why is China and Japan reducing Treasuries? They see it coming. Just remember, once the trucks stop rolling, your grocer shelves will be completely bare in 3 days. Buy a gun.
Excellent analysis of a very disturbing but important article. I agree that once those dollars abroad are dumped back here the crisis will become much more problematic. While that is already happening, I believe the only thing keeping it from being an avalanche of dumping is the reserve status of the US dollar and petro dollar. That will change however as China is busy buying massive amounts of Gold while the U.S. is busy buying up treasuries. The cracks are starting to appear already with more and more countries accepting other currency in its transactions. The warning signs for a total collapse are imminent. There are more bubbles forming than a Lawrence Welk re-run. I hope TBP keeps this excellent article on the first page for an extended period and readers send it to family and friends. It is very very alarming.
It is mathematically impossible to pay off the debt. There isn’t enough money in the system. (do the math.) The whole financial system is modified Ponzi scheme. New money comes into the system with the creation of new debt. As such, the debt MUST increase to avoid collapse. That being said, a collapse is inevitable without a fundamental change in our financial system.
Unfortunately, the bankers have put so much misinformation into the media and educational system, no more then a tiny percentage of the population will ever understand it.
No more than a tiny percentage of the population cares. There are plenty of other things to keep the masses busy. Games involving sticks and balls. Debating over what restroom to use. Blindly fawning over singers, dancers and actors. Fighting over which minority flavor of the day is being treated unfairly. Protesting and rioting over fake outrage. Getting all their info from fake news, government sponsored, professional readers. Borrowing and consuming. Yes, I’d say the elitists and statists are running pretty good interference to keep people preoccupied in the present to really care about boring things like debt, default, printing, ponzi schemes, learning about the past and caring about the future.
The problem is that all money in the system is loaned into the system and bears interest.
That means not enough has been loaned to pay off the loan and more needs to be borrowed to do it.
Our dollars aren’t pegged to anything real -anything from gold to grade 8 bolts- that has been already been produced in advance of issuing them, that’s where the problem is.
Jacob Lew’s introduction is jaw-droppingly delusional and smug.
My favourite fact from the report is that around a third of the USG’s net assets (most of $1.3trn of $3.5trn) are in the form of student loans receivable.