U.S. Federal obligations exceed world GDP - *$65.5 trillion*

When I read this.... I was taken aback! How is this possible? This information is No Where Near what the government is saying or releasing!
Where did these numbers come from? What I can say, is if this is true - even half that amount.... we can Never get out of it. At some point "truths" will be Forced out into the open!

link to article: www.worldnetdaily.com...

As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the "2008 Financial Report of the United States Government" as released by the U.S. Department of Treasury.

The difference between the $455 billion "official" budget deficit numbers and the $5.1 trillion budget deficit cited by "2008 Financial Report of the United States Government" is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.

Below is the key here - the U.S. has lived off other country's money... but they are getting smart and not "jumping" to buy our debt anymore.

"Monetizing the debt" is a term used to signify that the Federal Reserve will be required simply to print cash to meet the Treasury debt obligations, acting in this capacity only because the Treasury cannot sell the huge of amount debt elsewhere.

The Treasury has been largely dependent upon foreign buyers, principally China and Japan and other major holders of U.S. dollar foreign exchange reserves, including OPEC buyers purchasing U.S. debt through London.

"The appetite of foreign buyers to purchase continued trillions of U.S. debt has become more questionable as the world has witnessed the rapid deterioration of the U.S. fiscal condition in the current financial crisis," Williams noted.

Calculations from the "2008 Financial Report of the United States Government" also show that the GAAP negative net worth of the federal government has increased to $59.3 trillion while the total federal obligations under GAAP accounting now total $65.5 trillion.

The $65.5 trillion total federal obligations under GAAP accounting not only now exceed four times the U.S. gross domestic product, or GDP, the $65.5 trillion deficit exceeds total world GDP.

Our country has been run on a "Ponzi" scheme - it will eventually unravel.

My one question to you....... have YOU prepared for when the unraveling happens?

"Social Security and Medicare must be shown as liabilities on the federal balance sheet in the year they accrue according to GAAP accounting," Williams argues. "To do otherwise is irresponsible, nothing more than an attempt to hide the painful truth from the American public. The public has a right to know just how bad off the federal government budget deficit situation really is, especially since the situation is rapidly spinning out of control.

"The federal government is bankrupt," Williams told WND. "In a post-Enron world, if the federal government were a corporation such as General Motors, the president and senior Treasury officers would be in federal penitentiary."

[edit on 14-2-2009 by questioningall]

reply to post by questioningall


I know there is another thread with this name somewhere...
but yes. It is horrible.

I would say that's a problem.

It's like 1 person saying they can do the work of 2. Just can't happen.

Someone's promises are going to be broken.

It's just about time to start looking after yourself, otherwise there will be no one to help you...

The numbers are a bit misleading. They include future obligations for medicare, social security, and other government handout programs. Those obligations are going to have to be dropped in the near future and people are just going to have to provide for themselves instead of expecting the liberal cradle to grave system to take care of them. Not even the worlds largest and most powerful economy can afford such obligations and current economic conditions prove my point. This kind of debt is killing us and the liberalism that brought it on is as well.