This is real. This is serious. This is the biggest financial story of the past 100 years. And nobody seems to notice or care. Hat-tip to Financial Sense for drawing attention to the Comptroller's report.
Get ready America. Get ready world. The game is up.
Here's US Comptroller David Walker's statement which accompanied his 12/15 Financial Report of the US Government, where he noted our books were in such disarray that they are unable to express a financial opinion as a public auditor normally should.
If the US were a company, our stock would be suspended, our shareholders wiped out, and our leaders would be in jail.
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.
December 19, 2006
State of Emergency: The USA is $50 Trillion in debt and unsustainable
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58 comments:
yep keith - on this one you r right.
the end is nigh.
$50,000,000,000,000 / 300 million Americans = $166,666 per person. Yup, we're fu#ked
unlike housing, the U.S. debt does always go up.
Keith, those that are aware and informed do care. But, what do we do? We did not create this mess and nor could we stop it. I did my part...I never once voted for that dumbass that is in office. It's going to get fugly.
a small detail...the 50 trillon is todays dollars!!
in the bank cash today...if not add 5-6% a year on top of that.
Gold.
China wins and loses in the WTO
By Zhou Jiangong
http://www.atimes.com/atimes/China_Business/HL19Cb02.html
SHANGHAI - Like two sides of a coin, China may
have gained a lot from
its accession to the World Trade Organization
(WTO) over the past five
years, but at the same time it has lost a great
deal. The rich have
become richer and the poor poorer, with Chinese
farmers and laborers
bearing great hardships caused by globalization.
China's economy is arguably benefiting from
globalization and its five
years of WTO membership. It is expected that the
country's exports by
value this year will triple those five years ago.
Over the past five
years, China's gross domestic product (GDP) has
grown at an average
annual rate higher than 9%, with its economy
jumping from world's
sixth-largest to the fourth-largest by GDP in
terms of the US dollar at
the current exchange rate.
all you smart people should put all your money in selling stocks short instead of complaining here......
you all would be rich renters
Keith,
Quite worrying about this. . .no elected official will EVER make a "tough choice" because they would loose the election. . .you WILL get your $1400 a month Social Security check. . . .of course an ice cream cone will cost $45. . .but what they hey. . .can we say hyperinflation boys and girls. . .then those "tough" elected officials will say, "not my fault."
By the way - back in Zurich, and I already see the deflated dollar here - was .79 to buy a Franc in October, now .82. . .
the fall of the american empire will not come from military attacks or from terrorism. the fall will simply be the rest of the world (our creditors) losing financial faith in us. hello, china ?
no elected leader will ever address this, and the current clown in the white house does not have the mental capacity to understand this.
game over.
Yes, as I have said many, many times in the past. This is the last part of the jewish gutting of a nation. These lovely jews have bankrupted us, flooded our nation with criminal mestizo wetbacks, and gotten us into a couple of jew wars (with a couple more yet to come). When is enough, enough? When will we cast these parasitic nation destroyers off of our backs? When will we join the ranks of the eighty other Nations that have done just that? History is repeating itself yet again here folks and here's the reoccuring theme: JEWS GUT YET ANOTHER NATION, INDUSTRIALLY AND FINANCIALLY, MAKING YET ANOTHER WINDFALL. STUPID AND PATHETIC WHITE EUROPEAN POPULATION WONDERS WHAT WENT WRONG.
Keith, if we looked at the world like that, we would just kill ourselves. We would think: groceries, they're $100 a month, for 80 years, that's almost $100,000 so let me just kill myself, I can't afford that. And, if you add in housing at an average cost of $1000 a mount, that's almost $1,100,000 if groceries are included. God I can't afford that!, let me go kill myself! Thus, $166,000 seems like something affordable.
I think the answer to this is quite obvious from an economic perspective. Most of this debt is long term obligations to social security and medicare. Here's what will happen.
Inflation, both real and reported will be higher than normal for the foreseable future. Social security benefits will remain the same while contributions will increase. Furthermore, the social security age will increase to over 70 and not be enough for people to live on except in poverty.
Hence, those who have not saved enough in personal savings will not be able to retire at all or will retire just a few years before they become incapcitated or die. Instead of retiring at 62 and living to 92, social security will be more like it was when it first started. People retired at 62 because the median life expectancy then was 67. 5 years to soak up the good life. Except most will soak it up from, 72 to 77/80 and most of it will probably be in a nursing home. Prior to that, they'll be flipping burgers or working as greeters at Walmart just to make ends meet.
The extension of the social security age plus increased taxes from the working old plus increased payroll taxes plus inflation will take care of this deficit. Unfortunately, the required solutions will only get worse the longer we delay making the above structural changes.
What should you do?
-Save for retirement or you may never retire and certainly not til your 70s if you are under 40 right now.
-Diversify your investments outside of the US where all the growth is.
Of course most people will do neither. I know plenty of americans who have no ability to reign in their spending and will live at the margins of society in their 60s and 70s just so they can drive that new car with his and her climate controls. Very sad, but very true.
BB
I readt it.
The whole 172-page report.
And I have some good news and some bad news
First the good news:
Forget that $50 trillion dollar forward-liability number. I will never be a problem.
Now for the bad news: The reason the $50 trillion will not be a problem is we as a country will not make it in our present form, running up the debt at the present rate.
So, long before we ever get to that $50 trillion number (seventy-five years from now according to the report) we will have long before exhausted all avenues of credit available to us via our debt-enablers.
By the way, the REAL kicker is how much miney has been stolen from Social Security "turst fund" and other federal pension programs.
Called "intragovernmental holdings" and discussed on page ten of the report, the feds simply don't count the money they have "borrowed" from Social Security (about $2 trillion so far) because, and I quote:
"This debt is not included on the balance sheet because these payments are claims of one part of the Government against another."
...which of course is a lie.
In any event, within five years (or less) this country will have run up so much current debt, that either our foreign debt-enablers will no longer lend us money, or we will default outright, or resort to hyperinflation to try to weasel out of the debt.
So, relax. No need to worry about the future seventy-five years out.
You'll never live to see it.
Neither will this country.
http://digitalskunk.blogspot.com/2004/06/meek-shall-inherit-earth.html
dont forget the selling off of the public infrastructure, the national wealth, and means of production, to foreign shareholder corporations, and the national defense ingresses and egresses,that would be required to get out of what may be impending problems and downslides, by posible treasoneers and sabatogers, bent upon the enslaving of joe six pack, and the theft of all his rights, including, the right to live, inalienatable!
and all agreed upon, by vote, to fulfill the concepts of closure
The solution to the debt problem is at one level very simple. Every politician knows that the entitlement programs have to be scaled back. Of course, none of them have the balls to be the "boogeyman" who takes away the free stuff. It's going to take a real crisis to get enough voters to overturn the old fart voting block.
Until that happens, you can flush 15% of your gross pay down the crapper. [15% isn't peanuts... I involuntarily spend more money on SS / Medicare than I do on my own two kids]
I've been working OT now for months on my US Currency printing press. We are however able to continue to keep pace with GW's incompetance.
Oh yeah, 1 for them (U.S. Govt.), 2 for me. Not a bad gig.
SS is a Ponzi scheme. It's asinine that Govt. only allows a certain percentage of one's income to fund a 401k. Your money that goes into SS funds every entitlement. It's the etitlemnents that need to end. Too many people are stuck on the Govt. teat. It is time to wean them off!
One more tinsy winsy detail...
Oil is cheap cheap cheap today.
At $300 or $1000 a barrel - wonder what that 50 Trillion will look like.
The answer is not to abolish SS & Medicare, killing off our old in the process.
The answer is to abolish the Federal Reserve system and move to a true debtless, government-issued currency, as the Constitution states. The Gov't simply prints money as needed to fund the government and that money works it's way into the economy, but there is no debt and tax system to back it, only the productivity of the American worker.
There would be no taxes in this system. Not only will they not discuss this alternative, they will continue to move even farther away from it, with the 'Amero', after we merge with Canada and Mexico.
People that protest in front of Capitol Hill and the White House are idiots. They should be protesting in front of the Federal Reserve building. Dressed as Rabbis.
"The answer is not to abolish SS & Medicare, killing off our old in the process."
Unfortunately - the old and sick will be the first culled in a low energy world (i.e. global depression). Natural selection.
So Rich, your parents and grandparents knock on your door looking for food and water, you're not going to let them in?
I've read every Peak Oil site, every argument. Prices are not going to $1,000 overnight. Production numbers are fairly steady.
There are so many alternatives to Oil for energy, like grain alcohol, for one thing. Hemp, for another, has a number of uses, one of them is fuel oil. It's just cheaper to buy oil right now and our wonderful gov't long ago outlawed hemp farming in favor of cotton.
America could produce enough grain alcohol to keep things running while more efficient solar solutions are being developed.
Don't go thinking that the world will change if there is an energy supply blip. You'll still have to get rid of the Fed, one way or another. The Fed presents a far greater danger to our future than running out of oil does. Heck, you can burn trash and generate electricity, only it just so happens that Waste Management owns Wheelabrator, who develops these waste to energy plants.
They don't build many, though, probably because it's more profitable to pick up trash and throw it in a landfill, but it could be done on a large scale and it is being done in a few US locations.
You are wasting your time promoting Peak Oil, not because it doesn't exist, but because it doesn't matter. You have to eliminate our overlords first or nothing else will matter. You should spend your time exposing Zionism, not Peak Oil.
ANON
one word...
u r wrong [.]
The full faith and credit of the US government is the most valuable thing on earth. What is wrong with monetizing more of it?
ANON was wrong about hemp taking the place of oil. Or corn...wishful thinking.
ITO Jewish lobbies...jewish media...jew secret clubs
No argument here.
When oil is $1000 a barrel - Israel will be feding for themselves...see it is not that the Jewish "issue" does not exist...it does...it just will not matter once the US of K crumbles and the 8 Billion a year in military toys goes away for Israel.
Keith,
Another great article:
http://tinyurl.com/y5ajje
Quote: " John Law was the first westerner to try shifting his country to unbacked fiat currency. That experiment ended in less than a decade after hyperinflation left the paper money worthless. But before that happened laws were passed in France that anyone holding gold and silver would be thrown in jail."
All you gold/silver buyers, just keep telling yourself "It can't happen here..."
"All you gold/silver buyers, just keep telling yourself "It can't happen here...""
It won't just be limited to those holding gold and silver...
Lesbians...
Blacks...
Those with pocket constitutions on their persons...
Bloggers with a disenting voice...
Those with guns...
Those who home school...
Those who refuse vaccinations...
Those who do not get a REAL ID card....
Those who protest...
Those who just "don't fit".
You think it can't happen here...it has and is.
The economic cycle consists of inflation and recession. In inflation, it is good to go into debt, because the borrowed dollars will be cheaper when paid back. In recession, cash is king, and anyone with just a little of it will live like a king. So, if the war causes inflation such as Viet Nam did, we should all own $1M houses with nothing down, right? Is my high school economics wrong? Please let me know what is going on -- there are more mixed signals here than at the NSA.
"Every politician knows that the entitlement programs have to be scaled back."
Nah, they will pay out exacly what they agreed to pay. But inflation will make those dollars worth about 10% of what they will buy today. That is how governments take care of too much debt -- they inflate it away.
BTW, where are all the deflation guys? November wholesale prices are up at an annualized rate of 24%, doesn't sound like deflation to me. Home builders around here have been complaining for months that prices for common building materials are going up about 1% a month. Doesn't look like deflation to them. Oh and despite what Keith says, home prices are still going up as well.
But if that $166,666 will only be worth $10,000 in 20 years is it so bad?
"$50,000,000,000,000 / 300 million Americans = $166,666 per person. Yup, we're fu#ked
Tuesday, December 19, 2006 4:35:07 PM
Anyone under 40 who thinks they will see $1 of SS is fooling themselves. Best to plan on never seeing any of the money you contributed to the system, you ain't gettin any...$50 trillion or $500 trillion, doesn't matter. It is a ponzi scheme that will collapse well before I retire.
Don't you know? They already are.
"you all would be rich renters"
Lurker in Seattle,
If the USA "goes down" just how closely is Canada's economy tied to ours?
How close is the Canadian Dollar tied to ours?
Will Canada get caught in the meltdown?
Will they close the borders to keep American refugees out?
No refuge north?
I guess Australia it is. Time to sell the condo, convert my assets to more portable wealth like Euros, Gold, and apply to Grad School in Sydney. Marry an Aussie and that should raise my immigration score enough to get a visa.
Good luck everyone!
We got what we deserve. Few if any in our government really question this printing of paper money with "no" limits. Since the private banks, Federal reserve, no more federal than I am, operated with flooding the system with dollars not holding value brought us to this. Since 1913 when the Federal Reserve started, the dollar has lost "95%" of its value.
The Dow Jones industrial average reached another record close on Tuesday as investors largely looked past economic and earnings reports that had stirred concerns about the health of the economy
Won't AUZ be as fucked up as everyone else? You think the AUZ dollar will be spared the wrath of the jews? Or are you a jew too?
I guess Australia it is. Time to sell the condo, convert my assets to more portable wealth like Euros, Gold, and apply to Grad School in Sydney. Marry an Aussie and that should raise my immigration score enough to get a visa.
Good luck everyone!
Won't the governemnt just print more money to pay it off? If history is a ny guide the answer is a resounding yes.
I owe a shitload of money, all of it at low fixed rates, including a 20 year fixed mortgage at 5.9%. I hope and pray for a reckless Fed printing money and bringing inflation up to 1970s levels.
If this $50 trillion is anywhere close to a real number I'm sitting pretty as the only possible way it will ever be paid off is through hyperinflation.
The 50 trillion is meaningless. It counts all social security obligations on every person, retired or not. Cutting social security to account for longer lifespans (maybe 25%) would probably get rid of most of the 50 trillion.
Medicaid is also out of control. It will be rationed in the future. Sorry no transplants on medicaid. Just die already.
Medicare, similar story.
The US had far greater debt after WWII than it does now...not that it's not important but a number like 50 trillion is just stupid.
Adviser: Worst of housing slump may over
By JEANNINE AVERSA, AP Economics Writer
Tue Dec 19, 3:06 PM ET
WASHINGTON - The worst of the housing slump might be over, although some pain is likely to linger, an adviser to President Bush suggested Tuesday.
ADVERTISEMENT
This year's housing slowdown — which came off five straight years of booming activity — was a key force behind the overall economy's loss of momentum in the late summer.
Investment in home building during the July-to-September quarter was reduced by the largest amount in 15 years. That sliced 1.16 percentage points off the economy's third-quarter growth, the most in nearly 25 years.
In terms of the crumbling housing market "most of the action has already played out," Edward Lazear, chairman of the White House's Council of Economic Advisers, told reporters.
Still, weakness in the housing sector will be probably visible in the months ahead, he said. "But hopefully that will end in the relatively near future and we'll be able to move back to a period of positive economic growth in the housing sector," he added.
The White House expects the economy to log fairly solid growth for all of 2006 — just over 3 percent — despite the cooldown in the once- sizzling housing market this year. Next year, the Bush administration believes that economic growth will slow slightly to around 2.9 percent and then pick up the following year.
Of the housing slump, Lazear said, "it looks like the precipitous decline that we saw earlier is not going to occur in 2007."
Death Of The Dollar for your simple mind's viewing pleasure Chauncy.
Not the best quality for some reason, but easy to understand for beginners.
Come on out of the Matrix.
http://www.informationliberation.com/?id=18777
Excellent post FWM!
The dollar is toast and it did not take hal turner to figure that out.
The doc. "america: freedom to fascism" explains a lot.
Free to watch on google video.
http://tinyurl.com/ykrznn
http://preview.tinyurl.com/ykrznn
terror storm
by alex jones is also a must see.
Free on youtube
Anonymous said...
$50,000,000,000,000 / 300 million Americans = $166,666 per person. Yup, we're fu#ked
Tuesday, December 19, 2006 4:35:07 PM
Sure, like EVERYONE'S gonna pay...
BubbleShanker said...
SS and medicare need to be ended for anyone under 40, if you are under 40 you will get a small percentage of what you put in to start your own retirement account. You are on your own, the way it should be.
Tuesday, December 19, 2006 7:34:11 PM
-------------
let me guess, u r 41 yo?
For those of you who don't know, Australia paid off the balance of its national debt earlier this year. They have NO NATIONAL DEBT.
Australia is the place to go.
Dear Richard Dick to Some.
Thank you.
iw
This illustration is for the Trolls so they can understand.
Have a Look.
te he
FUTURE HOME OF THE USD
http://www.stevequayle.com/News.alert/06_Photo_of_Day/061220.photo.of.day.html
or
http://tinyurl.com/y76nn8
More from those down under (new zealand and Australia)
http://www.energybu lletin.net/ 23819.html
Published on 19 Dec 2006 by Energy Bulletin. Archived on 19 Dec 2006.
New Zealand's response to Peak Oil
by Tim Jones
The Transport and Oil Working Group of the New Zealand Sustainable Energy Forum has just released Peak Oil: A Major Issue for New Zealand [PDF, 60 KB], which is designed as a quick guide for the public and the media on what the Peak Oil issue is about, how it affects New Zealand, and how New Zealand should respond.
The document includes a set of proposals for Government and individual action to prepare for and mitigate the challenge of Peak Oil. SEF Transport and Oil Working Group convenor Tim Jones says that, during the past year, the New Zealand Government has admitted that Peak Oil is a real issue, but it is still not being taken seriously enough.
"The Government's recently-released draft New Zealand Energy Strategy devotes only three paragraphs to Peak Oil. Although there's a praiseworthy focus on climate change in the document, the lack of attention to Peak Oil contributes to the draft Strategy being disappointingly weak in the area of transport," Tim Jones said.
Keith,
You really need to look at the peak oil stuff... YES the economy is going to tank, and YES it's looking more like 1929 than the 70s... all that is going to happen regardless.
But, the biggest issue we face today (or in the next few years 2007-2010?) is the global peak in oil production. As production decreases, it will change our lives in many ways.
Many believe there is no solution... once you really understand the problem you begin to see that alt. energy or "technology" really offers no long term (or even short term) solutions.
www.peakoil.net
Read "The Long Emergency" or "The Coming Economic Collapse".
Do you fools just make this stuff up as you go along? You can't possibly believe the lies can you?
http://www.theage.com.au/news
/National/National-debt-too-high-
Beazley/2005/06/12/1118514917679.html
Federal Opposition Leader Kim Beazley has expressed alarm at the size of Australia's national debt. Mr Beazley today told the NSW state Labor Conference at Sydney's Town Hall that Australia's $425 billion foreign debt was a risk to the economy
LIAR SAID:
"For those of you who don't know, Australia paid off the balance of its national debt earlier this year. They have NO NATIONAL DEBT."
Each person is too blame. But at the same time, the corporations don't educate the masses about their rules---in essensece, we don't know what we don't know!
This is something that will always be with our society unless people, like us, who are somewhat awake to what is really going on educate everyone else.
None of the U.S. debt is legitimate. It is owed to the shareholders of the private central bank, the Federal Reserve. The U.S. has ONE trump card left to prevent the world's elites from taking the money and leaving the debt to the American people!
We can send the Marines to each and every shareholder of the Fed, JP Morgan, Goldman Sachs, etc. and, at the point of a gun, make them surrender all of their personal assets, in lieu of instant justice, as the start of financial reparations. They will be awarded an indefinite house arrest and provided a subsistence level existence in a double-wide while working to undo the fiat money system and put U.S.A back on a Constitutional money system of hard currency. The new American economy will be a cash-based economy of income and savings with strict controls on credit. The American commons will be restored to the public trust and allodial titles to property will be made available.
Anybody caught leveraging, or trying to reproduce the old financial games, will be executed and his body hung up on Wall Street for all to see. That's what I'd like to see.
To Honika Jewinski: You are an absolute moron. To state that the jewish people are responsible for this just shows how little you know of the world and even the workings within the United States. My mother gets a SS check once a month that was from what my father earned. She has no debt and no assets to her name. So using your logic, she obviously drew us into a prolonged war with Iraq and Afghanistan. Oh, by the way, how many Jews performed terrorist acts against our nation? It is the freedom of speech that allows you to post such inane dribble. As a veteran of two of our nations wars, I'm quite sure that I have done far more as a jew for our country that you could ever dream of. Have a nice day!
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