Hey, guess what? The United States is flat broke! OK, I imagine this doesn’t come as big news to many of my readers, since you are of much higher intelligence than the mainstream media’s target audience of low information voters. However, I wonder how many of you actually caught the issuance of House Resolution Number 41.
Since this dealt with financial matters, I am not surprised there was virtually no coverage of this Resolution. Also, there is absolutely no chance it will end up passing and being officially entered into the Congressional Record. But it is very enlightening when we look at what it says about America’s financial situation:
“Whereas the Federal Government is operating at an annual deficits and is increasing its outstanding debt every year; Whereas the Federal Government, as of January 2015, is carrying more than $18 trillion in debt, of which $13 trillion is owed to the public and $5.08 trillion is owed to Social Security and other trust funds; Whereas foreign governments, individuals, and corporations as of October 2014 own 47 percent of Federal debt held by the public;
Whereas Social Security’s unfunded liabilities in 2014 are $10.6 trillion over 75 years and $24.9 trillion over the infinite horizon; Whereas the Federal debt held by the public is expected to increase by more than $7 trillion from 2014 to 2024 according to the Congressional Budget Office; Whereas more than 16 percent of the entire Federal budget goes directly to States and local governments;
Whereas more than 22 percent of total State and local government general revenue comes from the Federal Government according to Census Bureau’s latest Annual Survey of State and Local Government Finance; Whereas several State and local pension plans are expected to fully exhaust their funds within ten years…”
And so it goes. Basically, the United States is broke. But you already knew that. Those idiots in Congress will try to tell us everything is OK, because we owe the money to ourselves. Looking at the above quote, we see that is clearly not true. Even if it was, it still is a very poor argument. Or, they will tell us we can simply work our way out by printing more and more money. Didn’t we already try that with QE I to IV or 1,000 or however many times they did this?
When a government is broke, there are not many options. They could choose to actually get serious and cut spending while creating policies to put the nation back to work in a productive capacity. In other words, less welfare and regulation and more tax breaks, business incentives, and the like. Most people have little confidence the government would even consider doing anything like this.
But there is a huge pile of cash they could think about grabbing. Retirement savings in this country are approximately $5 trillion. That is a nice prize…probably too big for any big government bureaucrat to resist for very long. This is the the push and the drive behind Obama’s MyRA program. He wants you to start taking your retirement savings and invest them solely in government bonds! Instead of Chinese and Japanese and Saudi Arabian tycoons, Obama wants us to finance the national debt.
He might just be able to pull this off, too. Nationalized retirement savings accounts. Imagine that. When given the option of seeing continued poor returns in the stock market or invested in CDs and the like at paltry interest rates, I imagine a number of people would jump at the chance to invest in an option guaranteed by the government to not lose money! Backed by the full faith and credit of the United States, folks. Of course, never mind that huge $18 trillion debt bubble, you see, we owe it to ourselves. Heck, once your retirement fund owns only government bonds, you really will owe it to yourself! Then, when the government goes belly up and defaults on its loans you can declare yourself bankrupt as well.
What do YOU think about all this? Is the MyRA program a wonderful idea for our broke government to be floating now? Will it get support from a number of people fed up with their continued poor market performances who believe the Obama lie of a government guarantee?