I’ve long-stated that the government of the
United States is completely insolvent. And that is 100%
true statement. The government’s own numbers show that official liabilities,
including debt held by the public and federal retirement benefits, total $20.7
trillion.
Yet the government’s assets, including the value of the entire federal
highway system, the national parks, cash balances, etc. totals just over $3
trillion.
In total, their ‘net
worth’ is NEGATIVE $17.7 TRILLION… a level that completely dwarfs the housing
crisis. If you include
the government’s own estimates of the Social Security shortfall, this number
declines to NEGATIVE $60 TRILLION. And it gets worse every year.
Now, is this balance sheet an accurate
reflection of reality? Do we really trust the bean counters to tell us what the
United States of America is really worth? Surely there must be significant intrinsic value to the United
States military, for example. Or the US government’s ability to collect taxes. Or
what about the value of all the natural resources underground? These must all be HUGELY positive and would
swing the government’s net worth back in the right direction. Guess again.
The US military is certainly one of the
best-trained and most effective forces in history. But
it’s difficult to place a substantial value on it when the government can no
longer afford to use it. And
even when they do use it, the overall cost of doing so is negative. The wars in Iraq and Afghanistan have cost
the taxpayers $4 trillion. But where’s the financial benefit? Aside from a few defense contractors
profiting handsomely, the Chinese got most of the oil. ISIS
ended up with much of Iraq. And Iran made out like a bandit, with the US
government taking out its most threatening neighbors free of charge. Mission
accomplished. Bottom line, even the best asset in the world can
end up being a big liability if it’s used improperly.
So what about the tax authority of the US government? If Uncle Sam can
collect $3 trillion in tax revenue each year, surely that must count as a huge
asset. And it absolutely is. If you
conduct a Present Value calculation of the future tax revenue of the US government
discounted by the official 2% rate of inflation, the US government’s ability to
tax its citizens is ‘worth’ $150 TRILLION.
But… if you’re going
to count the government’s tax authority as an asset, you have to be
intellectually honest and consider the expenses as liabilities. Think about it: yes, the
government brings in tax revenue every single year. But for nearly every year
over the last seventy years, they’ve spent far more money to deliver on the
promises they’ve made to their citizens. Those promises are liabilities.
And given the government’s spending history since the end of World War II, the
liabilities far exceed the tax authority asset.
More importantly, though, isn’t it
a little bit scary to consider that the government’s #1 asset is its ability to
steal money from you? Or that the only way the government can make its liabilities go away is by defaulting
on the promises it has made to its citizens? That’s their only way out: steal from you, and default on you.
Join me in today’s very sobering (and inspiring) podcast as we dive deep into the government’s own numbers
and discover the truth… and what you can do about it. Go audio to at:
Herman
Talmadge III
Comments
The audio
report from the Sovereign Man by Simon Black compares the US with France in the
18th century, overspending.
He says that the US federal government shows a balance sheet negative
net worth of $18 trillion on the monthly Treasury Financial Report. But the
cost of military foreign aid isn’t counted as a liability and resources are not
considered as assets. The value of the US government’s tax authority is $150
trillion. The promised benefits to taxpayers are liabilities spending more than
they take in. With 70 years of overspending the liabilities are well over $200
trillion. Social security liabilities are $42 trillion with 50 million people
retired 11 million are disabled. Add 21 million veterans and government pension
recipients. Unfunded liabilities are $127 trillion plus more obligations for
housing loans student loans banking guarantees 15 trillion. FDIC has no cash.
$200 trillion not on the balance sheet. The Ottoman Empire disappeared. France
had a revolution. The British Empire retrenched. He predicts and recommends
default and further predicts that we will survive if we move some of our
savings to a solid overseas bank or asset.
Norb
Leahy, Dunwoody GA Tea Party Leader
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