U.S. Federal obligations exceed world GDP

U.S. Federal obligations exceed world GDP

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.

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"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.

But the numbers in the 2008 report are calculated on a GAAP basis ("Generally Accepted Accounting
Practices") that include year-for-year changes in the net present value of unfunded liabilities in social insurance programs such as Social Security and Medicare.

Under cash accounting, the government makes no provision for future Social Security and Medicare benefits in the year in which those benefits accrue.

"As bad as 2008 was, the $455 billion budget deficit on a cash basis and the $5.1 trillion federal budget deficit on a GAAP accounting basis does not reflect any significant money [from] the financial bailout or Troubled Asset Relief Program, or TARP, which was approved after the close of the fiscal year," economist John Williams, who publishes the Internet website Shadow Government Statistics, told WND."

www.worldnetdaily.com
(visit the link for the full news article)

Good Find!!! I've been Looking for More Confirmation on Our Current Financial Crisis.

Truth Be Told...It Has Been Bankrupt for Quite awhile, it's Just Now With Things Crashing so Hard/Fast, the Masses are Starting to Really Take Notice.

Check out My Signature Thread For More info...

S&F !!!


[edit on 2/14/2009 by Hx3_1963]

I always wondered where all our money seems to come from... I guess it likes to disappear too.

in the video Money As Debt, there is a graphic of the "interest" monster getting bigger and bigger chasing after the world. a pretty harrowing concept if there ever was one.

frighteningly, we have now reached that point.

It is a shame that we spend more money on this recession than what a lot of third world country GDP is. Why do we have to keep pumping more and more money into this recession when it isn't going to do much stimulation of anything. In the latest bill included such measures as removing e-verify from companies who get bail out money. What that means is that companies don't need to run checks on employees to make sure they are American citizens. E-verify has been a program for ten years and is up for renewal this year and was apart of the last bail out bill as a condition, but was removed by the democratic congress on the new stimulus bill.

the other part of the bill was a provision in socialized medicine. It is a provision which gives the government the right to tell a doctor or a hospital when a patient has receive enough medical care. Doctors and medical professional can be find if they go beyond this limit. I believe this is for those on medicaid and medicare. So socialized medicine has begun and they can decide when you become a lost cause and are sucking up too much attention and are going to be cut off while you life hangs in the balance.

These and many other amendment and other provisions that are in a bill that is going to cost more that most of the third worlds GDP. This bill is so big that it will take as much money as the government will collect in taxes in the coming year. So what will the other programs departments do for money. We will just have to issue more bonds and borrow more money and just push the debt on down the line to the next generation. My generation.

Does anyone have a final tally on how much Bush spent in Iraq. I think that we are going to eclipse it really quick if things keep going the way they are going.

Why do we have to keep pumping more and more money into this recession when it isn't going to do much stimulation of anything.

Because america is the banker's new biatch. Don't worry, it will soon be over. It will be either slavery or revolution, but be assured of complete chaos between now and one of those two outcomes.

Obama's the new puppet, you better understand or lick his boots, or you'll be crushed in the middle.

So why on Earth is your country even still standing exactly? should it not be down the pooper already? or is it in fact the plan to print as many dollars as possible and wave goodbye to your currency? why the hell is the dollar still worth what it is? The USA brand name or arftifical...1 dollar is now 0.7 euros at exchange rate...that doesnt seem right..Not my area of expertise but i know we are all getting bent over by banking elites.

reply to post by Solomons


They'll never print enough money to cover it. It is all electronic. I believe the reason why the dollar is still worth .7 to on Euro is because the Euro has taken a dive as well. There isn't much that hasn't. China is still the one though buying our treasury bonds and financing our debt.