The $65.5 trillion financial obligations of the United States, including medicare and social security, now eclipse the gross domestic product (GDP) of the entire world, and that’s before the Troubled Assets Relief Program (TARP) or the so-called economic stimulus package monies are considered. The government, in their current reporting, makes no consideration for medicare and social security benefit net present value changes in the year that they accrue, only when they are distributed, therefore the government is substantially underestimating our true debt. According to experts, our tax dollars earmarked for these programs and our future use are no longer being placed in a theoretical “lockbox” for future distribution to us. In other words, these tax monies that are being withheld weekly from our paychecks are being diverted to fund current and future “real-time” social welfare programs without consideration for the impact upon the future obligations. If a U.S. company did this, their officers would be in federal prison. In the U.S. government, apparently, it’s the status quo.
What makes a bad situation worse is the current U.S. economic instability. Foreign entities like China, Japan and other major holders of U.S. dollar foreign exchange reserves have funded our government spending obligations for a long time, however, now the experts say this will not continue. This will force the Federal Reserve to “monetize the debt” or, in other words, simply print cash to fund these obligations. This will lead to further inflation and, in their words, “threatens the viability of the financial system”.
If you can’t fund your debt, you are considered bankrupt. The experts believe the U.S. Treasury is already printing money in order to meet the government’s financial obligations. Therefore, the U.S. is bankrupt.
Expansion of socialism needs to stopped before it goes any further. Social welfare spending must be curtailed, not expanded, or total collapse of our economic system will result, in the words of the experts.
Please read this very revealing WND article to get a better understanding of that which the U.S. Treasury and the President are complicit in keeping from all of us hard-working taxpayers…
http://wnd.com/index.php?fa=PAGE.view&pageId=88851
