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News Link • Government Debt & Financing

We Have Sold Our Grandchildren Into Perpetual Debt Slavery

Sadly, the chart above does not tell the real story. It is based on fraudulent government accounting. If the government used GAAP accounting (like all public companies on Wall Street must), the numbers would look much worse. John Williams of Shadow Government Statistics says that if the federal government would have used GAAP accounting standards to calculate the federal budget deficit for 2009, it would have been approximately 8.8 trillion dollars and that there is simply no way out of all this debt.... The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall. The U.S. government is essentially bankrupt at this point. It is just a matter of playing out the hand. The rest of the world is starting to realize this, and confidence in the U.S. dollar is beginning to significantly decline. Things did not have to turn out this way, but Americans did not listen to the warnings and so now this is where we are at as a nation.

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