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The US is really bankrupt and most don’t know it

uncle sam credit card gullotine

“This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck. ” — Laurence Kotlikoff

“Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills. What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.” Laurence Kotlikoff

The U.S. was bankrupt after the Korean War and it has no intention of honoring it’s debt. Indeed, they actually intend to borrow for as long as the world allows, and it appears that time is quickly upon us. Don’t forget that Roosevelt declared bankruptcy in 1932 and when the U.S. went off the Gold Standard, that too was a form of bankruptcy. It was done unilaterally.

The futurists recognized the collapse of the American Economic Empire as a certainty as far back as 1982. They also recognized the Generational Storm and the 75 million people (those born after WWII) lining up for their social security cheques without knowing the cookie jar is empty.

The Rich Folks knew and intended to break every promise made to the Working Class since WWII. Also, Free Trade was not about manufactured goods, but rather the ability of the Rich Folks moving their money out of North America. Free Trade gave the Rich Folks unfettered access to banking systems around the globe and thus giving them abilities to avoid the Generational Storm in North America.

Britain did the same thing in 1870 and the collapse of empire did not occur until after World War I. The Rich Folks in Britain moved their money out of Britain and into North America between 1870 and 1900. Knowing this, America has been living on “Borrowed” funds for 50 years. Here are some basic facts:

Federal Debt:
1982 $1.142 trillion
2010 $14 trillion

Plus all monies collected from pay cheques for social security and medicare was not stashed away to meet the promises made to the Working Class. Indeed, it was spent which leaves the U.S. with Unfunded Liabilities:

$13.9 trillion for Social Security;
$18.4 trillion for Drescription Drugs
$73.3 trillion for Medicare/Medicaid

usa debt chart 1910 2010

International Monetary Fund declares USA bankrupt

Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

If every level of government doesn’t significantly roll back the exorbitant salaries paid to their ‘workers’ we are in for a depression that will make 1929 look like a party. Every study done clearly shows the taxpayer (and government ‘workers’ don’t pay taxes) are falling more and more behind with the parasites living off their investments and labor. Government is a cost center, nothing more and nothing less. Their incomes should follow that of private industry, not lead the charge. If we don’t get government back to being servants of the taxpayers it is gonna collapse. Instead these egomaniacs will raise taxes to keep their own party going. I wonder what the provinces expenditures would drop to if government ‘workers’ put in a full day vis-a-vis private industry and were paid in line with these folks.


  1. David Jeremiah David Jeremiah August 16, 2010

    For People to not Rise up against the Financial System, it is obvious that More people are being Fed than People who are NOT being Fed. This is the Truth: People will not wake up until there is no Food on the Table. So the People who are not being Fed have to remain silent for being Guilty of Not being able to provide for themselves.

    The truth is: From 1965 to 2010 there has been a record by the UN that (1) The Rich are getting Richer and the Poor are getting Poorer (2) The Middle Class is Disappearing (3) The Boom-Bust cycles are getting more destructive each decade (4) These are world-wide in effect not sparing any Nation. (5) 30% of the Poor today were not born poor. (6) The Repealing of the Glass-Steagall Act allows room for further corruption. (7) The Dollar having no gold backing is nothing but a counterfeit currency. (8)The Uncontrolled Monetization of US Debt will only increase the effects of 1) to 5) and the World will have its Day of Revolution like the French Revolution an the Oligopolies who are benefiting through the sufferings of others will be exposed.

  2. Allan Allan August 17, 2010

    The Next big Crash??????

    All of the federal government’s efforts to stem the tide of the financial meltdown have added hundreds of billions of dollars to an already staggering national debt, a sum that is expected to double over the next 10 years to more than $23 trillion. In Ten Trillion and Counting, FRONTLINE traces the politics behind this mounting debt and investigates what some say is a looming crisis that makes the current financial situation pale in comparison.

    By now, you may have heard about our acclaimed documentary I.O.U.S.A., a film that boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. The film has been a huge hit, getting rave reviews from Roger Ebert and others.

    Collapse of the American Empire: Swift, Silent, Certain

    Historians warning of a sudden ‘thief at night,’ an ‘accelerating car crash’

    By Paul B. Farrell

    Harvard’s Niall Ferguson, one of the world’s leading financial historians, echoes Diamond’s warning: “Imperial collapse may come much more suddenly than many historians imagine. A combination of fiscal deficits and military overstretch suggests that the United States may be the next empire on the precipice.” Yes, America is on the edge. ……

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