(News & Editorial/ Update: US Economy)
A. The US Government Has Nearly As Much Debt As The World Has Wealth
11 Jun 2014, Gold-Eagle.com, by Jeff Berwick contributing editor
Pasted from: http://www.gold-eagle.com/article/us-government-has-nearly-much-debt-world-has-wealth
According to a study by the Boston Consulting Group, privately held wealth increased to $152 trillion globally in 2013.
Compare this to estimates putting the US federal government’s total debts and liabilities alone at anywhere from $78 trillion to $200 trillion and you can see just how untenable the US government’s debt is. The US government is nearly indebted to the equivalent of all the privately held wealth in the world and possibly more!
Remember that the next time someone says, “The US is the richest country on Earth”. It is much more accurate to state that the US is the most bankrupt and indebted country in the history of the world.
Tallying Up The Total
We are dealing with massive, incalculable numbers here, of course. Certainly it is impossible to calculate the value of all wealth in the world but the Boston Consulting Group’s number of $152 trillion is reasonable. Zero Hedge calculated the total amount of global wealth at $223 trillion.
What should be much easier is calculating the total debt and liabilities of the US government… but even this is mostly a guessing game. Even the US government’s own Government (Un)Accountability Office (GAO) which is slated with the task of trying to find out where all the money in the government is going has said that it is impossible to fully audit the government.
“The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2012 consolidated financial statements of the federal government because of widespread material internal control weaknesses, significant uncertainties, and other limitations,” the agency said. “As was the case in 2011, the main obstacles to a GAO opinion on the accrual-based consolidated financial statements were: Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable. The federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies. The federal government’s ineffective process for preparing the consolidated financial statements.”
However there have been some estimates of the total debt and liabilities of the US government. Former US Comptroller General David M Walker argues total US government debt is $73 trillion. Some consider it to be higher: The Washington Post asked if the US has $128 trillion in unfunded liabilities. That means the US government is nearly as indebted as the world is wealthy, if not more.
This means that all the wealth in the world – every stock, bond, bar of gold, piece of real estate – couldn’t even pay off the US debt and liabilities at this point.
Actual debt owed via Treasury bonds currently stands over $17 trillion and as can be seen in the following chart has gone fully parabolic.
That total doesn’t take into account the liabilities of the federal government. These are funds that have been extorted in the past for programs such as Medicare, Medicaid and Socialist Insecurity that are theoretically supposed to be paid back. If accounted for under Generally Accepted Accounting Principles (GAAP), like every other company in the US does, total US government debt and liabilities stands above $90 trillion and is rising at about $5 trillion per year.
The Only Thing Keeping This Game Going
This is a truly record-breaking amount of debt for an empire. Compare this to the Soviet Union which, in comparison, barely had any debt at all… mostly because no sane person would lend a communist government money. The total amount of debt of the Soviet Union upon its collapse was $45 billion and was quickly paid off once Russia had become more capitalist and actually created wealth in 2006. $45 billion is equivalent to what the US government goes into debt every 15 days currently!
The only thing keeping this system alive is the never-ending printing of money of the Federal Reserve and the continued acceptance of dollars by foreigners in the form of Treasury bonds.
In March of this year, Treasuries held by the Federal Reserve on the behalf of foreigners recorded the biggest drop in history.
In other words, this game is coming to an end. And all the wealth in the world couldn’t even pay off the debt and liabilities of the US government at this point.
Yet, the great majority of people are not even aware of the possibility of The End Of The Monetary System As We Know It (TEOTMSAWKI) much less prepared for it. Stay tuned at The Dollar Vigilante for info, news and analysis on how to survive and prosper during and after the collapse of the US dollar.
B. 19 Reasons Why You Can Laugh When Anyone Tells You That The Economy Is In Good Shape
10 June 2014, End Of The American Dream.com, By Michael Snyder
Pasted from: http://endoftheamericandream.com/archives/19-reasons-why-you-can-laugh-when-anyone-tells-you-that-the-economy-is-in-good-shape
Have you heard the one about the “economic recovery” in the United States? It’s quite funny, but it is not actually true. Every day, the establishment media points to the fact that global stock markets have soared to unprecedented heights as evidence that the economy is improving. But just because a bunch of wealthy people have gotten temporarily even richer on paper does not mean that the real economy is in good shape. In fact, as you will see below, things just continue to get even tougher for the poor and the middle class. Retail stores are closing at the fastest pace since the fall of Lehman Brothers, the rate of homeownership in this country is the lowest that it has been in 19 years, one out of every five families do not have a single member that is employed, and one out of every five children is living in poverty. We are working harder, earning less and going into more debt. With each passing day, the middle class gets a little bit smaller and the ranks of the poor get a little bit larger. But at least the stock market is doing great, eh?
If the U.S. economy really was doing well, government dependence would not be at epidemic levels.
If the U.S. economy really was doing well, we wouldn’t have more than a million public school children that are homeless.
If the U.S. economy really was doing well, the percentage of Americans that have a job would not be lower than it was when the last recession supposedly “ended”.
Nobody that takes an honest look at the numbers can honestly say that the U.S. economy has recovered. The following are 19 reasons why you can laugh when anyone tells you that the economy is in good shape…
#1 RadioShack just announced that it is going to close an additional 200 stores on top of what it was already planning to close.
#2 During the first quarter of this year, reported earnings by major U.S. retailers missed estimates by the largest margin in 13 years.
#3 One out of every three grocery store workers in the state of California is on some form of public assistance.
#4 The percentage of Americans that believe that it is a “good time to buy a home” is the lowest that it has been in four years.
#5 According to one recent survey, 52 percent of Americans cannot even afford the house that they are living in right now.
#6 Sadly, only 36 percent of American adults under the age of 35 currently own a home. That is the lowest level that has ever been recorded.
#7 According to one new study, half of all college graduates are still relying on their parents financially when they are two years out of school.
#8 The number of planned job cuts by U.S. employers is on the rise again…
Job cuts climbed to the highest level in more than a year, as U.S.-based employers announced plans to reduce payrolls by 52,961 in May, according to a report from Challenger, Gray & Christmas.
#9 Right now, one out of every six men in their prime working years (25 to 54) do not have a job.
#10 The percentage of Americans not in the labor force is still at a 36 year high.
#11 53 percent of wage earners in the United States make less than $30,000 a year.
#12 The average age of vehicles on America’s roads has hit an all-time high of 11.4 years. Are we making them better or is it just that people simply cannot afford to buy new vehicles anymore?
#13 According to Pulitzer prize-winning reporter David Cay Johnston, the economic recovery following the depths of the Great Depression was far superior to what we are experiencing today…
The most eye-opening measure of how poorly the vast majority are faring these days comes from comparing the periods after the Great Recession and the Great Depression.
The 90 percent, the vast majority, saw their income decline in 2012 compared with 2009, the year the Great Recession officially ended. Average annual income was down $556, or almost 2 percent, adjusted for inflation, to $30,997.
But in 1936, three years after the Great Depression ended, the vast majority enjoyed 31 percent more income than in 1933. The average increase, in today’s dollars, was $2,146 per household.
#14 The U.S. economy did not experience any economic growth during the first quarter of 2014. In fact, it actually contracted.
#15 The growth of furniture spending has just gone negative for the first time in about two years.
#16 More than 20 percent of all children in the U.S. are living in poverty, and 49 million Americans are dealing with food insecurity.
#17 As I have written about previously, approximately 20 percent of all American families do not have a single member that is employed at this point.
#18 According to a recent Gallup survey, “Unemployment/Jobs” represents the number one concern for U.S. voters.
#19 After adjusting for inflation, median household income in the U.S. is now about 7 percent lower than it was in the year 2000.
[You haven’t seen anything yet, wait until the second half of this “recession” sets in.
Watch for the next major decline in the stock market; watch for an internal political and international blame game to commence; watch for a war – perhaps one that brings missiles to American soil or near space… watch out below.
On June 18th, the following headline appeared in the news, “Pope Francis warns global economy close to collapse.” Has the Pope stooped to becoming a fear monger and a prepper, or has the global public been missing the message? The warnings are rising fast now, perhaps just not in US main stream media, never- the- less, the “Good times are here again ” end game lies just over the horizon and is approaching. Mr. Larry]