“Enron Accounting” Has Bankrupted America: U.S. Deficit Really $202 Trillion!
- Will America ever pay back its debts? Obviously not! It is mathematically impossible. At 3% interest rate, a debt of US$100T will accrue yearly interest payment of US$3T. Total tax revenue is around US$2.1T. Even at its highest, it was just about US$2.5T. With deficits running way above US$1T a year, where do the Feds get the money to pay even the interest on debts?
- The answer is: they don’t. They just roll over debts ie refinance debts and now finance interest and debt capital payment with massive amount of Quantitative Easing, printing or electronically creating money out of thin air. This is a giant Ponzi scheme. It makes Enron’s Ken Lay look like an amateur. This is simply legalized counterfeiting.
- How will this end? The Illuminist plan is a global monetary crisis centred around the USD. When the USD collapses, many countries’ foreign reserves denominated in USD will crash overnight! Imagine having a US$100B of reserves and its purchasing power drops 50% overnight! You lose US$50B of purchasing power. This will impact responsible, hard-working and fiscally prudent countries like the Asian Tigers and China, a great deal.
- We should not however, think that only Asia will be affected. The USD is the world reserve currency. It is held by all countries in varying amounts because of the need to buy oil (which is bought and sold only in USD) and the needs of international trade. As much as 65-70% of global trade between countries is transacted in USD. When the USD collapses, the ramifications across the world is catastrophic. When half of the hard-earned reserves disappear overnight, many countries will no longer be solvent.
- I have no doubts that the Illuminist banksters will initiate attacks on countries via the forex market, the capital market and the bond/stock markets. Keep in mind that both the Euro and JPY are also dubious fiat currencies overloaded with debts that will never be paid back! We have the makings of one hell of a Big Bang coming up! Got gold yet?
“Enron Accounting” Has Bankrupted America: U.S. Deficit Really $202 Trillion
The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion this year. An astronomical figure, to be sure, but that’s lower than was projected in March. It’s also less than last year’s record $1.41 trillion deficit, which was close to 10% of GDP. And, that’s the good news.
As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures. But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.
“Forget the official debt,” he tells Aaron in this clip. The “real” deficit – including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget – is actually $202 trillion, the professor and author calculates; or 15 times the “official” numbers.
“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don’t Even Know It.
Yet, the debt market continues to have an insatiable appetite for U.S. Treasuries; heading into Monday’s session, the yield on the 30-year Treasury bond (which moves in opposition to its price) was at its lowest level since April 2009.
Kotlikoff says that’s because the market is focused on the “mole hill” of official debt. In time, the U.S. will have a major inflation problem to rival that of Germany’s post World War I Weimar Republic, he predicts. “We have to think about the fact that unless the government gets its fiscal act in order we’re going to have the government printing lots and lots money to pay these enormous bills that are coming due over time.”
America is in need of major reform of the health-care, retirement, tax and financial system, Kotlikoff continues. “We need (to perform) heart surgery on this economy, not putting on more band-aids which is what we’ve been doing.” Barring that, your hard-earned dollars will soon be worthless, he declares.
- See also:
15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse
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