Actual U.S. debt higher than total world economy
Monday, February 16 to 15:51, 105 views
Groningen, Monday, February 16, 2009
Tuesday President Obama puts his signature to the dollar cost about 800 billion economic stimulus program. Most of the American public is not, however, aware that the actual deficit of the U.S. government, consisting of both debt and deficit financing commitments, a staggering $ 65.5 trillion is - higher than the total Gross National Product of world.
This total debt of the U.S., including the yet to be social and medical benefits and allowances, that the U.S. government is actually bankrupt, even without the new social obligations Obama's stimulus package are included.
The big difference explained
The real federal budget deficit in 2008 amounted to the Financial Management Service Bureau of the Ministry of Finance $ 5.1 trillion, not officially approved by Congress reported $ 455 billion. The huge difference is due to the fact that the official deficit is calculated on a cash basis, where all tax revenues, including those from social security are used to government liabilities.
The much higher numbers of FMS are calculated on the standard GAAP (Generally Accepted Accounting Practices), and include the annual change in the net value of the unfunded liabilities in social insurance programs such as assistance and health insurance. In the official 'cash' calculation, the government does not take into account the mandatory issues for future assistance and health insurance, in the year that they should be paid.
And while 2008 was so bad, with an official cash deficit of $ 455 billion and $ 5.1 trillion federal deficit, large-GAAP basis, is not even the huge amount of the first financial bailout package ( "Tarp", $ 700 billion) by the end of 2008 to customers, "said John Williams, economist and author of the Internet website Shadow Government Statistics.
'The Budget Office of Congress estimated that the fiscal year 2009 deficit of $ 1.2 trillion on a cash basis will show. That was before the total cost of the wars in Iraq and Afghanistan and of the approximately $ 800 billion dollar stimulus package Obama was there. The second-Tarp bailoutronde of $ 350 billion, and all ongoing bailouts of the Fed and the Ministry of Finance are not at. "
"The deficit of the federal government is so terribly fast, that the viability of the financial system it is threatened," Williams added that to it. "The public report of 2009 a cash deficit of well over $ 2 trillion to show and the whole amount by the Ministry of Finance borrowed."
"It is likely the Fed itself to function as money provider for the Ministry of Finance. In this way, the guilt 'gemonetariseerd', which simply means that the money presses running to be put to the schuldverplichtingente requirements. That will have to, because the Ministry of the huge amounts of debt nowhere else to sell. "
No money for social security and health insurance
According to Williams, the U.S. government money for social security and health insurance (Medicare) put aside. 'It's only a matter of time before the public becomes aware that the government actually insolvent, and that no taxes separately put to the social security and health insurance to pay. Insurance, where people every year have paid for through taxes. "
The $ 65.5 trillion by the U.S. federal government under the GAAP standard guilty, is four times as high as the U.S. GDP and is even higher than the total GNP of the whole world. 'In the last seven years we have averaged an annual deficit of $ 4 trillion had in no way by means of tax could be together,' explains Williams from. "Shortages of this magnitude are impossible to maintain."
"The only way for the government to social security and health insurance obligations, the bijdrukken money. This year will increasingly take place, thus increasing the dollar value will decrease.
Painful truth: U.S. is bankrupt, is hidden
"It is not publishing the actual deficit in accordance with the GAAP standard is nothing but an attempt to the painful truth for the American public to keep hidden. The public has a right to know how bad the State is and how big the deficit really is, especially since the total situation out of hand is running. "
"The federal government is bankrupt," Williams concludes. "If the members of the government had worked at a company, they would now all in prison."