the Debt Problem as Bad as They Say?
by Simon Black: Bankrupt
Nations Try to Stop the Future From Happening, Fail
On the rare
occasion that Im bored, I like to watch 24-hour news television
for entertainment. Its hilarious watching the talking heads
spin out of control in apoplectic fits when theyre essentially
arguing the same point; they might be from different parties, but
theyre merely battling over small details of the same government-sponsored
caught one of these talking head financial experts on TV arguing
about debt levels in the United States. He was saying that the US
debt doesnt matter all that much because the US government
has so many assets to offset its debt.
he suggested that things like the highway system, national parks,
and strategic petroleum reserve would more than offset Americas
liabilities, so the looming national debt isnt such a big
deal after all.
have been more wrong.
Accounting Office (GAO) puts out an annual financial report that
looks and feels like corporate financial statements
the US government doesnt have to abide by the same accounting
principles as the private sector, so they get to cheat quite a bit
in overstating their position.
recent report is signed off by Tim Geithner and includes oodles
of newspeak from the Ministry of Plenty about how dazzling their
economic recovery measures have been. Needless to say, the numbers
paint a different picture.
Even when you
add up -all- of the assets, right down to every desk, chair, and
lifeguard stand, and even if you throw in a healthy boost to the
asset column to account for premiums in the market value for land
and gold in Fort Knox, the government is still in the
hole to the tune of over $10 trillion. It would take more than 300,000
years to count that high.
And yet, the
fake recovery is vanishing, the dollar keeps falling against anything
of real value, and the average guy on the street is realizing limited
benefit for his share of the debt and inflation burdens. How is
said that bureaucrats and politicians have an extremely limited
playbook consisting of taxation, regulation, and inflation. These
three ugly sisters of bureaucracy effectively serve to steal from
people, make things more difficult for them, and rob them of their
and yet theyre dressed up as solutions
instead of problems.
case of Illinois the state is completely insolvent and running
out of cash quickly. It doesnt have the luxury of printing
its own currency, and is thus being forced to deal with its fiscal
much like Greece.
the rest of the article
June 10, 2011
© 2011 Sovereign Man