Last week in the Land of the Free, I heard a radio campaign ad for a local political candidate while in Texas.
In the ad, he was talking about the debt and excessive government spending. And then he said something along the lines of, “We need to get this under control before America goes bankrupt.”
‘Buddy,’ I remember thinking, ‘America isn’t going bankrupt. It already IS bankrupt.’
Just so that we don’t mince words, my dictionary defines ‘bankrupt’ as “any insolvent debtor,” i.e. a debtor whose liabilities exceeds assets.
That’s the US government, by its own admission.
As we’ve discussed before, the US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities.
The liabilities far exceed the assets. Big time. And the hole is getting deeper each year.
At this point the government’s net worth is roughly NEGATIVE $17 trillion, about 110% of GDP. That’s textbook insolvency.
The only reason the US government is still able to service its debts is because they are borrowing money just to pay interest… and because the Federal Reserve keeps printing money to buy up US debt.
These are hardly sustainable fiscal strategies.
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9 comments:
Let's be clear: The Federal Reserve Bank (international group of secret bankers) create money out of nothing - and buy U.S. Treasuries.
Because the U.S. Dollar is the world's reserve currency (Bretton Woods Act) the other Nations and Governments in the world sit idle while the Fed counterfeits our currency. The other Nations no longer want to hold U.S. Dollar denominated assets. Some (BRICS) are making plans to de-peg from the U.S Dollar and sell natural resources between themselves in their own currencies.
If this happens, the U.S. Economy will collapse over-night!
The foreign wars are all fought in order to force Nations into continuing the use of the U.S. Dollar (which is not in their interest). The U.S. has become a rogue government because it can't control the Federal Reserve.
The Fed cannot create money out of nothing. That is ridiculous. If that were the case, they could become as rich as they want!
Banks loan us money which someone else deposits. The Fed is buying Treasuries with borrowed money. From whom do they borrow the money is the real question.
But they cannot and do not simply "print money" - that is silly and not true.
Brazil, Russia, India, and China want to use their own money to trade. Forget them!
They must use our money and that is the way it will stay. If they don't like it then we will bomb them. We are not going to let them just use their own money. This is America damit.
By any measure of any standard Obama has bankrupted America.
The U.S. dollar soon will no longer be the World reserve currency and the U.S.A. will dissolve.
11:31 you are totally misled please investagate the just what the FED is.
No Nixon screwed us up when he took us off the gold exchange.
11:31 - you really should educate yourself..They actually do print money out of thin air. That is a fact
11:31 - visit Youtube and watch the short video named "How Banks Create Money out of Thin Air."
Everyone should watch that vid.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow" morning.
Henry Ford
Misguided and misinformed people like 11:31 are why we are in trouble.
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