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BREAKING: US government releases its 2015 financial statements
BREAKING: US government releases its 2015 financial statements
Hot off the presses, the US government just published its audited financial statements this morning, signed and sealed by Treasury Secretary Jack Lew.
These reports are intended provide an accurate accounting of government finances, just like any big corporation would do.
And once again, the US government’s financial condition has declined significantly from the previous year.
For 2015, the government reports $3.2 trillion in total assets.
This includes everything from financial assets like bank balances to physical assets like tanks, bullets, aircraft carriers, and the federal highway system.
Curiously, the single biggest line item amongst these listed assets is the $1.2 trillion in student loans that are owed to the government by the young people of America.
This is pretty extraordinary when you think about it.
37% of the government’s total reported assets are student loans, which is now considered one of the most precarious bubbles in finance.
$1.2 trillion is similar to the size of the subprime mortgage market back in 2008. And delinquency rates are rising, now at 11.5% according to Federal Reserve data.
Plus, it’s simply astonishing that so much of the federal government’s asset base is tantamount to indentured servitude as young people pay off expensive university degrees that barely land them jobs making coffee at Starbucks.
On the other side of the equation are a reported $21.5 trillion in liabilities, giving the government an official net worth of negative $18.2 trillion.
This is down from last year’s negative $17.7 trillion and $16.9 trillion the year prior. It just keeps getting worse.
But there’s one thing that’s even more incredible about all of this.
You see, each year these financial statements are audited by the government’s in-house agency known as the Government Accountability Office (GAO).
All big companies do this. They publish financial statements, which are then reviewed by an independent audit firm.
…click on the above link to read the rest of the article…
Debt Crisis Central: Let’s Not Forget About America
Debt Crisis Central: Let’s Not Forget About America
As the situation in Puerto Rico has recently revealed, Greece is not alone. The world is filled with debt laden nations, many of which may never be able to pay down their liabilities. All told, the world is $200 trillion in debt, of which $57 trillion was accumulated in the past 8 years. And for the record, all the wealth in the world, including assets, amounts to $241 trillion (as of 2013). It’s safe to say that the human race is on one massive debt bender, and there won’t be any easy way out.
As for which countries are worse off than others, a recent article from The Guardian happens to reveal which of the world’s nations are on the fast track to a debt crisis. As I read it however, there was a country that was suspiciously missing from the list. Can you spot this missing debt junky? (hint: it’s America. The answer is always America.)
New analysis by the Jubilee Debt Campaign reveals that Greece’s plight is far from unique: more than 20 other countries are also wrestling with their own debt crises. Many more, from Senegal to Laos, lie in a debt danger zone, where an economic downturn or a sudden jump in interest rates on world debt markets could lead to disaster…
…Jubilee’s analysis defines countries as at high risk of a government debt crisis if they have net debt higher than 30% of GDP, a current-account deficit of over 5% of GDP and future debt repayments worth more than 10% of government revenue. “We estimate that 14 countries are rapidly heading towards new government debt crises, based on their large external debts, large and persistent current account deficits, and high projected future government debt payments,” it says…
…click on the above link to read the rest of the article…
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems
The Global Problem: Monetary Policy Can’t Fix an Economy’s Structural Problems
When we look back from 2025, it will be painfully obvious that central bank policies exacerbated the systemic crises that brought down the global financialization machine.
What with all the praise being heaped on central banks for “saving” the world from economic doomsday in 2008, it’s only natural to ask which structural problems their unprecedented policies solved in the past 6 years. After all, “saving” the world from financial collapse was relatively quick work; so what problems beyond imminent implosion did the central banks policies solve in the past 6 years?
Answer: none. zip, zero, nada. The truth is central bank policies of zero-interest rates andfree money for financiers have made many structural problems worse.
Did central bank policies resolve the structural problem of unfunded pension and retiree healthcare liabilities? No, they made it worse, as zero-interest rates have reduced the yields on pension funds, 401Ks and IRAs to mere pittances. This destruction of safe yields has driven pension funds into risky investments in junk bonds and stocks, leaving them vulnerable to devastating losses when the current credit bubble bursts.
Did central bank policies resolve the structural problem of corporate wealth buying political influence? No, they made it worse, by encouraging corporations to borrow vast sums to use on whatever they fancied–for example, lobbying and share buybacks.
Did central bank policies resolve the structural problem of rising dependence on credit for weak “growth”? No, they made it worse, as cheap money enabled the re-emergence of subprime loans to marginal borrowers. The deterioration of credit quality guarantees a credit crisis and bubble pop as marginal borrowers default.
…click on the above link to read the rest of the article…
The Math Does Not Lie: America Is One Hiccup Away from Total Anarchy | The Daily Sheeple
The Math Does Not Lie: America Is One Hiccup Away from Total Anarchy | The Daily Sheeple.
Half the country is on welfare assistance of some sort. Seventy million Americans receive some kind of federal assistance in obtaining food. The United States is one disaster from total anarchy. The disaster is likely to result from an economic collapse. Please consider these numbers:
THE MATH DOES NOT LIE!
NATIONAL DEFICIT: $18 TRILLION DOLLARS!
UNFUNDED LIABILITIES: $240 TRILLION DOLLARS!
DERIVATIVES DEBT: ONE QUADRILLION DOLLARS!
UNEMPLOYED AMERICANS OUTNUMBER EMPLOYED AMERICANS!
THE UNITED STATES GOVERNMENT TAKES IN TWO TRILLION DOLLARS!
– See more at: http://www.thedailysheeple.com/the-math-does-not-lie-america-is-one-hiccup-away-from-total-anarchy_122014#sthash.zHGoutTD.dpuf
