Tuesday, October 20, 2015

The US Government Really Is Bankrupt...........

The US Government Really Is Bankrupt

The government of the United States is completely insolvent.

That is 100% true statement.

The government's own numbers show that official liabilities, including debt held by the public and federal retirement benefits, total $20.7 trillion.

Yet the government's assets, including the value of the entire federal highway system, the national parks, cash balances, etc. totals just over $3 trillion.

In total, their 'net worth' is NEGATIVE $17.7 TRILLION

If you include the government's own estimates of the Social Security shortfall, this number declines to NEGATIVE $60 TRILLION.

And it gets worse every year!

If you conduct a Present Value calculation of the future tax revenue of the US government discounted by the official 2% rate of inflation, the US government's ability to tax its citizens is 'worth' $150 TRILLION.

But… if you're going to count the government's tax authority as an asset, you have to be intellectually honest and consider the expenses as liabilities.

Think about it: yes, the government brings in tax revenue every single year. But for nearly every year over the last seventy years, they've spent far more money to deliver on the promises they've made to their citizens. AND NO ONE IN LEADERSHIP HAS DONE ANYTHING TO STOP IT! YES THEY TALK, BUT THEY DO NOTHING TO STOP IT!

Those promises are liabilities. And given the government's spending history since the end of World War II, the liabilities far exceed the tax authority asset.

Isn't it a little bit scary to consider that the government's #1 asset is its ability to steal money from you?

Or that the only way the government can make its liabilities go away is by defaulting on the promises it has made to its citizens?

That's their only way out: steal from you, and default on you.



No comments:

Post a Comment