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View Full Version : US government’s net worth is now NEGATIVE $75 TRILLION




Origanalist
04-06-2019, 06:57 AM
Simon Black
April 3, 2019
Dorado, Puerto Rico

Usually around the middle of February each year, the US Treasury Department releases an annual report of the federal government’s financial condition.

It’s called the Financial Report of the US Government… and it looks a lot like an annual report that you might see filed by a big company like Apple or Facebook.

Except that, unlike Apple and Facebook, the US government’s annual report is absolutely gruesome.

This year’s report is no exception, save for one humorous anecdote: they -just- released it. In other words, they’re a month and a half LATE (given that the report is typically released in mid-February).

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I actually CALLED the Treasury Department myself in early March, asking when they would publish the report.

The bewildered individual on the other end of the line said that he had no earthly idea, given that the government had been shut down for so long earlier this year.

Anyhow, if you want to see the report for yourself, you can download it here.

But I thought I would take the liberty of providing a few highlights–

In Fiscal Year 2018, the government’s total net loss was $1.16 TRILLION.

Uncle Sam collected $3.4 trillion in tax revenue in FY18. But they spent over $4.5 trillion.

Of that $4.5 trillion spent, nearly HALF went to Social Security and Medicare. (They also spent a record $523 billion just on interest payments on the national debt!)

This is extraordinary given that the Social Security and Medicare trust funds are set to run out of money within the next 15 years.

In other words, despite spending almost HALF the federal budget on Social Security and Medicare, both programs are effectively insolvent.

As a matter of fact, on page 10 of the report, the government estimates Social Security’s long-term funding gap to be a mind-blowing $53.8 TRILLION (which is almost 10% worse than last year).

To put that number in context, $53.8 trillion is roughly 70% of the entire world economy. That’s how bad the Social Security funding gap is.

But it gets worse.

As part of the report, the federal government also tallies up its assets and liabilities, just like any individual or company would do.

If you have assets (like houses, cars, cash, investments) worth $1 million, and liabilities (credit card debt, mortgages) worth $300,000, your net worth is $700,000.

The government has assets as well: a total of $3.8 trillion. The single largest component of that– $1.08 trillion– is STUDENT DEBT.

In other words, the government’s #1 asset is the debt owed to it by young people across America. That’s pretty sad.

The next biggest asset is what accountants call “property, plant, and equipment”, or PP&E. That’s the sum total of all the land, government buildings, tanks, aircraft carriers, military bases, etc.

For Fiscal Year 2018, the government reported $581 billion in equipment (mostly military), and about $500 billion in real estate.

In total, the government’s $3.8 trillion in assets sounds like a lot.

Except that the government’s liabilities, i.e. the national debt, etc., totaled more than $25 trillion.

That makes the government’s net worth an unbelievable NEGATIVE $21.5 TRILLION.

And that’s a lot worse than the government’s negative net worth of -20.3 trillion in 2017, -19.3 trillion in 2016, -18.2 trillion in 2015, -17.7 trillion in 2014…

Notice the pattern?

If you add their own estimate of Social Security’s unfunded liability, Uncle Sam’s total net worth is NEGATIVE $75 TRILLION… which is almost precisely the size of the entire global economy.

What could possibly go wrong?

continued..https://www.sovereignman.com/trends/us-governments-net-worth-is-now-negative-75-trillion-24868/

Itsback
04-06-2019, 07:24 AM
All these financial reports are real or fake ?? People drink alcohol etc.. as they say "booze and women".

Just write $50,000,000,000,000 and people will see all the money and read it. It could be "clickbait" just like those hollywood movies makers who have earned $50 million or $200 million from nonsense movies

oyarde
04-06-2019, 07:46 AM
Precisely why my investment patterns differ from just stocks and cash . I place weapons , ammo ,land , gold , silver , copper , lead , aluminum , tools and equipment etc at as great or greater value . Just in case . That way there is no risk of leaving yourself with nothing but devalued paper . They are adding a trillion a yr to debt while raking in record tax revenue and paying a half trillion in interest . That of course does not include social security , medicare or medicaid . In order to keep those going and the actual few things in Article One Section Eight that the fed govt has some legal standing to dabble in everything else should be eliminated . This will not be done which means exactly that one day it will all fail. Do not be left holding the bag of dogshit.

Aratus
04-24-2019, 05:12 AM
Since 2001 the War on Terror has cost us easily 6 to 7 Trillion dollars.

timosman
04-24-2019, 05:17 AM
Since 2001 the War on Terror has cost us easily 6 to 7 Trillion dollars.

:rolleyes:

Aratus
04-24-2019, 05:27 AM
:rolleyes:

Duckie.... we have lousier roads and public schools. We are less secure.

TheTexan
04-24-2019, 05:42 AM
Negative $75 trillion sounds like a lot but I'm sure there's a perfect reasonable explanation.
Zippyjuan

oyarde
04-24-2019, 05:58 AM
Negative $75 trillion sounds like a lot but I'm sure there's a perfect reasonable explanation.
Zippyjuan

Neg 75 T could be a bit optimistic

Zippyjuan
04-24-2019, 10:37 AM
Negative $75 trillion sounds like a lot but I'm sure there's a perfect reasonable explanation.
Zippyjuan

It assumes you have to pay every penny every person has qualified to receive over their entire lifetimes right now and with no future tax revenues to do so.

TheTexan
04-24-2019, 02:51 PM
It assumes you have to pay every penny every person has qualified to receive over their entire lifetimes right now and with no future tax revenues to do so.

Thanks Zippy, I feel a lot better now

Schifference
04-24-2019, 03:02 PM
Gonna be like that Forest Gump movie where he talks about the rain going every which way and says, "and then one day it just stopped." Obviously this will not go on forever. Who do we owe the money too? Foreign countries? Fuch them! Every investor, person, entity, that lends money or sells on credit knows there is risk. The money owed to the American people? Too Fuching bad! That property you think you own? Think again Mother Fucher!

shakey1
04-24-2019, 03:09 PM
US government... less than worthless. :bigpoo:

Schifference
04-24-2019, 03:26 PM
I hear of negative population growth and they talk like we need the workers to pay for the old peoples benefits. What happens in a couple of years when automation makes most positions irrelevant?

enhanced_deficit
04-24-2019, 06:05 PM
Even if grandchildrens lunch money is being spent to defend our closest allies in mideast, a bird in hand now is better than two in the air in future.

Anti Globalist
04-24-2019, 06:30 PM
Negative net worth. They must be very proud of that.