Saturday, February 14, 2009

The United States is Bankrupt!

Jerome R. Corsi of WorldnetDaily did an article entitled, "Federal obligations exceed world GDP - Does $65.5 trillion terrify anyone yet?. This article describes the absolute reality of collapse of the American government. I can't say anymore about it, but you can read the article, and then review the 2008 Financial Report of the United States provided by the US Treasury.

The table below is extracted directly from the US Treasury Report looking out the infinite horizon. Look down at the lower-right total obligation for Social Security, Medicare, and Disability Insurance. Yes, that reads $101.9 TRILLION more in outlays than projected revenues.

The table below shows where we stand right now, looking out only 75 years, but including all federal government obligations, including social program entitlements from the table above. Yes, you're seeing $65.5 TRILLION dollars (the amount of money we're going to need in current dollars, added to the expected revenues for the next 75 years, to cover the federal obligation for all the promises our government has made for the next 75 years.)

Below is the link to the report from, as referenced in the Corsi article. You can read the US Government's dirty little secret for yourself.
December 2008 - GAAP-Based 2008 Federal Deficit

Perhaps this explains why the Democrats appear to have lost all sense of responsibility? I mean, after all, why bother to be fiscally responsible when the fuse is lit and it can't be extinguished? Republicans have engaged - again - and are fighting to stop the waste and the acceleration to our collapse, but are they doing it because they think they can stop it, or simply so they will have some power before things come crashing down around us all?

Have the Chinese and other foreign investors in America's debt figured out what is happening? What can they do? If they stop throwing good money after bad it will only hasten the destruction of the world economy and civilization as we know it. But if they keep throwing money into our spending insanity, don't they only prolong the agony and worsen the collapse?

China announced last week its intention to continue to buy US Treasury bonds even though it knows the dollar will depreciate because such investments remain its "only option" in a perilous world. But is this "only option" a decision based on confidence in the dollar, or a decision driven by desperation to keep the global economy from collapsing?

Luo Ping, a director-general at the China Banking Regulatory Commission, speaking at the Global Association of Risk Management’s 10th Annual Risk Management Convention, said: "We hate you guys. Once you start issuing $1 trillion - $2 trillion . . . we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do."

God help us all.

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