As I have pointed out in several posts, the US is currently totally insolvent.
It is bankrupt.
The Federal Reserve will begin massive money printing operations shortly.
The dollar will be destroyed shortly.
You will not get your Socialist Security money.
You will not get your Medicare care.
You will not get to keep your house.
You will not get to keep your crumby 401Ks.
You will be impoverished debt slaves severing a totalitarian government that will put a boot in your face should you decide not to pay the criminal bankers with your tax dollars.
The government has destroyed everything and has taken all your freedoms.
And you love it.
Zero Hedge reports:
There are some who will take up hundreds of pages to explain something as simple as the complete bankruptcy of the US entitlement program. Others, like Morgan Stanley in this case, present it succinctly- why write and write and write when a one page income (well, loss technically) statement will suffice? In a presentation, oddly focusing on Internet Trends, the MS team puts up an appendix page that probably should make the inbox of every politician in America. In a nutshell, when analyzing the math of entitlement spending, even as revenues flatline (at best), and decline (realistically), the expenses are quite literally growing geometrically. At this rate of deterioration, the Loss on the entitlement P&L will be at ($3 trillion) a year by 2013. For those who don’t buy this estimate, here is a refresh: it was +$128 billion in 2001, (318) billion in 2005, and ($1,413) billion in 2009.
Hey, but why stop there.
Zero Hedge has also provided us with a realistic analysis of our debt to GDP in that time frame as well:
One of the events that received absolutely no mention last week was the sneakily announced Treasury annual report on public debt this past Friday, alongside the horrendous NFP report. Luckily, courtesy of Congressman Dave Kamp, we have managed to obtain this report which shows the unprecedented level of delusion that exists at all levels of our administration. In a nutshell, the attached report pretends to forecast US debt and GDP levels. What it doesn’t pretend to do, is to be the work product of a variety of pathological liars. Even as Geithner anticipates US total debt to hit $19.6 trillion by the end of 2015, somehow, in some parallel universe, he also anticipates US GDP will rise at a 5% CAGR for the next five years! Total US GDP, which was at $14.2 trillion for 2009, is expected to ramp up by 2.7% in 2010, and then really put on the afterburners in 2011 through 2015, averaging almost 6% each year, and hitting a stunning $19.2 trillion in 2015. The ridiculousness of this assumption is beyond comprehension. And even so, total debt/GDP will still be over 100% per the government’s baseline assumptions. Alternatively, if one assumes, as PIMCO does, a GDP growth rate of 1.5% for the next 4-5 years courtesy of the 10% unemployment “new normal”, total debt-GDP will hit 126% in 5 years. And this obviously excludes GSE, SSN and Medicare off balance sheet debt. Lastly, the Treasury assumes that even with 100% Debt to GDP, the funding cost on US market debt in 2015 will be only 4.7%, compared to the 1990-2009 average of 5.9%.
The government has lied to you.
The government has kept you stupid and socialist with its public education programs.
The government has stolen your retirement and squandered it on wars and bureaucrats.
The government has stolen your medical savings into old age and wasted it on needless regulatory bodies and warfare.
The government has looted the equity of your home and handed it to bankers.
The government has taken everything from you and has given you nothing in return except stupidity and enslavement.
Have a nice life as debt slaves.