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Title: True U.S. debt exceeds world GDP by $14 trillion Obama 2010 budget deficit now 5 times larger than nation's output
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URL Source: http://www.wnd.com/index.php?fa=PAGE.view&pageId=278017
Published: Mar 21, 2011
Author: Jerome R. Corsi
Post Date: 2011-03-23 17:00:05 by Mad Dog
Keywords: fiat, is, theft
Views: 6343
Comments: 11
As the Obama administration prepares to finance a Fiscal Year 2011 budget deficit expected to top $1.6 trillion, the American public is largely unaware that the true negative net worth of the federal government reached $76.3 trillion last year. That figure was five times the 2010 gross domestic product of the United States and exceeded the estimated gross domestic product for the world by approximately $14.4 trillion. According to the U.S. Department of Commerce Bureau of Economic Analysis, U.S. GDP for 2010 was $14.861 trillion. World GDP in 2010, according to the International Monetary Fund, was $61.936 trillion. Shock the Washington establishment by participating in the "No More Red Ink" campaign and shut down all new plans for bailouts, "stimulus" spending and even the funding for Obamacare. "As government obligations continue to spiral out of control and the U.S. government shows no willingness to make the magnitude of spending cuts required to return to fiscal responsible, the U.S. economy is headed to a great collapse coming in the form of a hyper- inflationary great depression," says economist John Williams, author of the website Government Shadow Statistics. Statistics generated in Williams' most recent newsletter demonstrate the real 2010 federal budget deficit was $5.3 trillion, not the $1.3 trillion previously reported by the Congressional Budget Office, according to the 2010 Financial Report of the United States Government as released by the U.S. Department of Treasury Feb. 26, 2010. (Story continues below) The difference between the $1.3 trillion "official" 2010 federal budget deficit numbers and the $5.3 trillion budget deficit based on data reported in the 2010 Financial Report of the United States Government is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur. The calculations in the 2010 Financial Report are calculated on a GAAP basis (Generally Accepted Accounting Principles) that includes year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare. Under cash accounting, the government makes no provision for future Social Security and Medicare benefits in the year in which those benefits accrue. "The broad GAAP-based federal deficits, including the Social Security and Medicare unfunded liabilities, have been in the $4 trillion to $5 trillion range in 2008 and 2009, and 2010's deficit again likely was near $5 trillion, remaining both uncontrollable and unsustainable," Williams wrote. "The federal government cannot cover such an annual shortfall by raising taxes, as there are not enough untaxed wages and salaries or corporate profits to do so," he warned. In his analysis of the 2010 Financial Report of the United States, Williams listed both an official accounting and an alternative. "The estimate of a broad 2010 GAAP-based deficit at $5 trillion is mine," he noted. "At issue with the published report, consistent year-to-year accounting was not shown, with a large, one time reduction in reported 2010 Medicare liabilities, based on overly optimistic assumptions of the impact from recently enacted health care legislation." U.S. Government GAAP Accounting Federal Budget Deficits U.S. Treasury, Financial Report of the United States, 2002-2010 (John Williams, Shadow Government Statistics, ShadowStats.com) Williams argues the total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, have effectively placed the U.S. government in bankruptcy, even before we take into consideration any future and continuing social welfare obligations that may be embedded within the Obama administration's planned massive overhaul of health care. "The government cannot raise taxes high enough to bring the budget into balance," Williams said. "You could tax 100 percent of everyone's income and 100 percent of corporate profits and the U.S. government would still be showing a federal budget deficit on a GAAP accounting basis." Williams argues the U.S. government has condemned the U.S. dollar to "a hyperinflationary grave" by taking on debt obligations that will never be covered by raising taxes and/or by severely slashing government spending that has become politically untouchable. "Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations," he cautioned. "The U.S. government and the Federal Reserve have committed the system to its ultimate insolvency, through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, gross mismanagement, and a deliberate and ongoing effort to debase the U.S. currency." He is concerned that the Federal Reserve will supplement its current policy of Quantitative Easing 2, or QE2, under which the Fed intends to purchase by mid-year 2010 another $600 billion of Treasury debt with "QE3." "These actions (QE2 and QE3) should pummel heavily the U.S. dollar's exchange rate against other major currencies," he concludes. "Looming with uncertain timing is a panicked dollar dumping and dumping of dollar-denominated paper assets, which remains the most likely event as a proximal trigger for the onset of hyperinflation in the near-term." Williams predicts that the early stages of hyperinflation will be marked by an accelerating upturn in consumer prices, a pattern that has already begun to unfold in response to QE2.
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#1. To: All (#0)
That figure was five times the 2010 gross domestic product of the United States and exceeded the estimated gross domestic product for the world by approximately $14.4 trillion. According to the U.S. Department of Commerce Bureau of Economic Analysis, U.S. GDP for 2010 was $14.861 trillion. World GDP in 2010, according to the International Monetary Fund, was $61.936 trillion. YEE HAW! "Stick it to de MAN!" "All HAIL the messiah king obammy!" Useful IDIOTS UNITE!
Living in mouth breather's empty noggins 24/7/365 totally rent free!
This is simply not true. Distorting the facts is not helpful. Unfortunately, distorting facts is what World Nut Daily always does. Here's is the real story: First, the U.S. government owes others (including U.S. citizens and foreign governments) about $10 trillion. This is the true current debt. Second, the U.S. has another $4 trillion in inter-governmental debt, which is nothing more than a book keeping fiction caused by two things: The government keeping separate accounts for Social Security and the General fund, and the government "borrowing" money from the Fed. In other words, this is money the government owes to itself. It could be completely eliminated overnight by changing the way the government keeps its books. Third, the government has tremendous future unfunded obligations stemming from Social Security, Medicare, and Medicaid being classified as "entitlement" programs. All of these obligations could be wiped off of the books overnight by simply removing these programs from entitlement status, just like we removed welfare from entitlement status in the 1990s. So, the true current federal debt is $10 trillion. It's a big number, but not insurmountable. The debt will become insurmountable unless the politicians reform the entitlement programs. Do they have the courage to do that? I doubt it, at least not without a huge, immediate crisis which gives them no choice. That crisis is coming in the next 10 years.
You're right, but for the wrong reasons. From http://www.kitco.com/ind/Dougherty/jan222010.html Putting Fiscal Year 2009’s $9,000,000,000,000.00 ($9 trillion) deficit another way, 17% of America’s private wealth, accumulated over a period of 235 years, was wiped out by just one year’s worth of government deficit spending insanity. ... Every single government entitlement program in the United States is bankrupt. This includes Social Security ($17,500,000,000,000.00 underfunded; $17.5 trillion); Medicare Part A ($36,700,000,000,000.00 underfunded; $36.7 trillion); Medicare Part B ($37,000,000,000,000.00 underfunded; $37 trillion); Medicare Part D ($15,600,000,000,000 underfunded; $15.6 trillion), Government and military pensions ($2,000,000,000,000 underfunded; $2 trillion), Food Stamps (current underfunding difficult to measure because the number of recipients is exploding; hundreds of billions underfunded versus original projections, minimum); and the list goes on. The above underfunding amounts are NET of projected tax receipts over the next 50 years. But the current recession has invalidated virtually all long-term budget and tax receipt assumptions, meaning that the true underfunded amounts are now greater than current, already mind-boggling estimates. Add to this, the fact that there is $1.4 QUADRILLION ($1,400 Trillion) in bad derivatives that are hanging out there, and a total of $500 Trillion of total global liquidity, and you should see the problem. [BTW, $1.4Q, if it were $1 bills, would cover the entire world with a layer of paper ~1.24 inches thick.] The reality is that Wall St. created a financial virus that has infected the entire world, and we're all going to suffer greatly for it. The budget that the comes out of D.C. is a complete fiction. They're simply forestalling the inevitable. Wake up, and smell the coffee.
Socialist ass-hats think "There will be no more money when the U.S. dollar has no value, until that time we can keep printing more." And yes, that IS from LF's answer to Ben Bernanke, go65, leading disfunctional and delusional socialist of the forum. "You want me to kill THE ENEMIES of Jappos, I'll kill THE ENEMIES of Jappos, Rebs, or Sioux, or Cheyenne... For 500 bucks a month I'll kill whoever you want. But keep one thing in mind: I'd happily kill you for free." Algren, "The Last Samurai" You may or may not be right. Without CITATIONS NONE of us will ever know will we? But the "substance" of your "argument" is that we are not covered in a hundred miles deep of hit, we're only buried under ten miles of shit. Oh, and WND BAD, bwerry bwerry BAD. That about right? You don't really think that I think that the same assholes who got us into this mess are going to NOW get us out of it do you? And I don't really give a F what your problem is with WND. You called them wrong but then you didn't post any PROOF or CITATIONS showing your claims to be valid.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Yep.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Tripled the deficit as I noted 18 months ago. Deal with it.
Atascadero sure has a large number of idiots (laughing my ass off)
I am not an economist, but I am a business owner and former corporate executive, so I know something about business finance. There are two basic accounting methods -- Cash and Accrual. Cash recognizes income when it is received, and claims deductions when expenses are paid. Accrual recognizes income when it is earned and claims deductions when expenses are incurred. Corporations can use the Cash method if they have receipts of less than $5 million a year. Regardless, government accruals (future liabilities) in Social Security, Medicare, and Medicaid can be completely wiped off the books tomorrow by simply removing these programs from entitlement status. Removing them from entitlement status removes all obligation to pay. Congress would have to vote every year on how much money to allocate, just like they do with everything else.
No I don't, which is why I said that a day of reckoning is coming. But the truth is that it doesn't have to come if we had politicians that would: A.) Refuse to raise the debt ceiling B.) Cut spending to balance the budget C.) Remove Social Security, Medicare, and Medicaid from entitlement status Of course, this won't happen, so I foresee a Japanese-style decade long rolling recession followed by hyperinflation to "pay" the bills. But it doesn't have to be this way. It's not to late to fix the issues. The true current debt is not as large as people make them out to be. BUT, the the debt is growing by leaps and bounds every single day. It won't be long before we cannot fix the it. We are less than a decade away from that happening. In the meantime, don't expect any big economic recovery -- it's not going to happen.
. You are way more optimistic than I am. I believe that the "great depression" of the 1930's is going to look like good times by the time we Americans get this straightened out. Just like the demonRATS and the statist repukelican'ts and their whores and tools want. It'll be a miracle if we make it a decade down the road without serious civil disruption, read VIOLENCE. I believe in my heart that the so called "progressives" WANT violence so they can crack down on American's remaining rights. It's going to get way more ugly before it ever gets better imo.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
I am not optimistic at all because there are too few politicians who get it. Many of those who do understand are hoping to retire before things completely collapse. All I am saying is that it still isn't too late to fix the problem, because the true current debt is not as large as people make it out to be. It was larger as a percentage of GDP at the end of WWII. BUT, the the debt is growing by leaps and bounds every single day. So it won't be long before the politicians won't be able to fix it. We are less than a decade away from the point of no return. In the meantime, don't expect any big economic recovery -- it's not going to happen.
You are preaching to the choir on this man. But I think that it is the people who need to buy a clue. Politicians are what they are. That has never and will never change. WE get the gooberment that WE deserve I'm afraid. WE put those scum in positions of power. We let them LIE to our faces with no consequences. WE have done this. OUR greed and selfishness and desire for power and status has done this. Surprise Americans are humans! "T'was EVER thus."
Living in mouth breather's empty noggins 24/7/365 totally rent free!
As the Obama administration prepares to finance a Fiscal Year 2011 budget deficit expected to top $1.6 trillion, the American public is largely unaware that the true negative net worth of the federal government reached $76.3 trillion last year.
#2. To: Mad Dog (#0)
(Edited)
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#3. To: jwpegler (#2)
This is simply not true. Distorting the facts is not helpful. Unfortunately, distorting facts is what World Nut Daily always does.
The government continues to dig a deeper and deeper fiscal grave in which to bury its citizens. This year, the federal deficit will total at least $1,600,000,000,000.00 ($1.6 trillion), which represents overspending of $4,383,561,600.00 ($4.38 billion) per day. (The deficit during October and November, 2009, the first two months of Fiscal Year 2010, totaled $296,700,000,000.00 ($297 billion), or $4,863,934,000.00 ($4.9 billion) per day, a record.) Using the GAAP accounting method (which is what corporations are required to use because it presents a far more accurate and honest picture of a company’s finances than the cash accounting method primarily and misleadingly used by the U.S. government), the nation’s fiscal year 2009 deficit was roughly $9,000,000,000,000.00 ($9 trillion), or $24,700,000,000.00 ($24.7 billion) per day, as calculated by brilliant and well-respected economist John Williams. (www.shadowstats.com) Fiscal Year 2010’s cash- and GAAP-accounting deficits will likely be worse than 2009’s, given government bailout and new program spending that is on steroids and psychotic.
#4. To: jwpegler (#2)
#5. To: Capitalist Eric (#3)
The budget that the comes out of D.C. is a complete fiction. They're simply forestalling the inevitable.
#6. To: GO65 (#0)
#7. To: Capitalist Eric (#3)
(Edited)
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#8. To: Mad Dog (#4)
(Edited)
You don't really think that I think that the same assholes who got us into this mess are going to NOW get us out of it do you?
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#9. To: jwpegler (#8)
#10. To: Mad Dog (#9)
(Edited)
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#11. To: jwpegler (#10)
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