American Government Broke – World Collapse Imminent!
Aug 28, 2013
It’s clearly apparent now that the United States government is broke. It’s an easy calculation for one to make if one just takes a bit of time to put the pieces of this jigsaw puzzle together. Let’s start with the numbers used by the Department of the Treasury where they reported the GAAP deficits for the year.
In 2012 we were at $6.5 trillion, which also includes the increased value of today’s recognized debt. Next look at America’s $17 trillion economy which includes the $6.5 trillion deficit that continuously increases. Finally throw in the huge amount of America’s unfunded debt obligations.
When summing all this up based upon various estimates you’re looking at figures between $40 and $80 trillion. With the economy at $17 trillion, the United States is also currently operating with a $1 trillion annual cash deficit.
Analogize the parallels between the City of Detroit’s bankruptcy and the fiscal condition of the United States. 10 years ago it was already known that Detroit was broke, yet no one tried to intervene to correct their fiscal problems. Now their bust, had action been taken earlier pensioners could have gotten away with 10% – 20% shaved of their salaries. However because of the total lack of action to repair the city’s problems, these pensioners were all forced to take a 75% pay cut in the end.
The scenario that played out for the City of Detroit could become the same scenario to be played upon America, should the government continue to delay the obvious. At some point in the future something terrible will happen which can’t be reversed any longer by papering over and over.
When that time comes expect those individuals who receive and exist upon government pensions, social security, Medicare and alike to receive pay cut’s far greater than they would have had to endure, had they already been receiving less. All this will happen because nobody did anything substantial early on, to right the fiscal wrongs that created this mess in the first place.