Am I imagining things or are all the financial idiots living in Washington, DC? Let me ask you a question: If you were in personal financial trouble what would you choose to do? A) Borrow more money to pay off your old debt. B) Borrow money from your enemies to pay off your debt. C) Drastically cut yor expenses. D) Print as much fake money as you could to pay your debt. E) Demand your neighbors, friends and relatives pay you for doing nothing to improve their lives.
If you are a politician in Washington or the Federal Government you do all but “C”. Which is, of course, a sure fire formula for bankruptcy – which is exactly where the federal government is not headed because it is already there.
Washington politicians, as well as members of the Federal Reserve, the U.S. Treasury and other federal financial institutions have been misleading the U.S. public for decades – hiding the true financial health of our country. The euphemistically titled “Recovery and Reinvestment Act” or “stimulus ” package put forth by President Obama and his Democratic gang of thieves will do neither: recover the economy or reinvest in America; nor will it stimulate anything except a rush toward financial ruin.
It should not take an Einstein to figure out that you cannot take on mountains of new debt to solve old debt problems. Any fifth grader could tell you that. But the majority of Americans have been bedazzled by the mantra “change we can believe in” to the point of mesmerized stupidty.
The United States use to measure its annual deficit in hundreds of billions of dollars. But in the last few months we have heard it expressed in trillions of dollars. However, the average citizen still does not know the whole story. For public consumption, the federal deficit for 2008 was reported to be $455 billion, whereas, in reality, it was a whopping $5.1 trillion.
The once great USA is fundamentally bankrupt. You read that right. If the United States of America were a corporation it would have filed for bankruptcy years ago. The only thing that keeps it afloat is the ability and license to keep printing money and unlimited borrowing capacity – until now.
According to the latest government report (2008 Financial Report of the United States Government), using Generally Accepted Accounting Practices (GAAP), the federal government is now in debt to the tune of $65.5 trillion or almost 5 times the yearly Gross Domestic Product of the entire country and far greater than the entire GDP of the entire globe. For a quicker summary you can go to John Williams’ Shadow Government Statistics.
The financial condition is no longer being referenced with other recessions, but with the Great Depression. Recovery from the depression did not, as most may think, come at the hands of President Roosevelt and his spendthrift economics, but rather at the hands of our enemies that forced us into a World War that was engineered by America’s industrial might. This time around there is no war spirring on the economy but draining it; and our industrial might has been depleted by industrial greed and misguided politics. So, what’s next? Where do we go from here? Read my next blog to find out.