U.S. Taxpayers On Hook For $5 Trillion

Our glorious leaders have taken it upon themselves to cover every mortgage in Amerika with tax payer backing.

Praise Mao.

Banks should not have to worry about making bad investments or loans, the public should pay them at all costs!  – Even it if means totally imploding the US economic system!

Aaron Task of Yahoo finance fills us in:

But after years of winks and nods, there’s no doubt that Fannie and Freddie now enjoy an explicit guarantee, according to most observers. The U.S. government placed Fannie Mae and Freddie Mac in conservatorship in September 2008: "This means that the U.S. Taxpayer now stands behind $5 trillion of GSE debt," according to the Congressional Research Service.

The problem is that $5 trillion of so-called agency paper is not treated as if it is a debt of Uncle Sam for accounting purposes, says Richard Suttmeier, chief market strategist at Niagara International Capital

That’s right.  Not only have our glorious leaders decided to back all the mortgages in the US with tax payer dollars, they have also decided not to account for this risk at all in the government budgets.

The reason they haven’t put it on the books becomes obvious when we dig a little further:

Another Time Bomb Ticking But $5 trillion is a lot of money – even by government standards — and moving on may be the problem because ofongoing problems in the housing market, Suttmeier says. "There’s a general concern on Main Street U.S.A. that ‘my neighbors are throwing in their keys, there’s more for sale signs in my community…do I want to buy a new home, risking there’s still downside risk to housing?’ "

Noting the Case-Shiller 20-City Home Price Index is still 50% above 1999 levels and mortgage delinquencies are still rising despite the rebound in GDP

If the 5 trillion in worthless debt was to be put on the books, the US would have no choice but to declare insolvency.  The US is already bankrupt, but the accounting tom-foolery is preventing an official declaration.

The statist tyrants are well aware of what they are doing.  They don’t care.  They are hell bent on destroying the country.  Nothing will stop them until the dollar is destroyed and the country is a smoking hulk of ruin and despair.

We can look forward to a life of socialist tyranny with 3rd world price controls, rationing, and police state enforcement.