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According to the Chief Auditor of the Federal Government books the US would be declared bankrupt if it were a private company. The facts below:

  1. Merrill Lynch can out and stated we are officially in a recession.
  2. The comptroller of the United States (guy who audits the federal govt. books) stated yesterday on t.v. that if the government were a company we would have to file for bankruptcy. 2008 is the first year that baby boomers start collecting Social Security. The fund has been wiped out and there is no money outside of borrowing more. There is over 52 Trillion dollars now in liabilty that we won’t be able to pay. He stated in order to pay it we would have to raise income tax to 75% or higher levels.
  3. Currently federal govt. borrows 2 billion a day to stay afloat. Mostly from foreign central banks. The Chinese govt. has surpassed the Japanese as our biggest creditor. We owe more money to a communist nation that any other in the world.
  4. Currently the entire income tax, 40% of Federal Income, goes to pay the interest on national debt. Not a single penny to services. Last year the Income Tax could not even cover the interest payments.
  5. 70% of our Gross Domestic Product is consumer spending driven. Very little is actual manufacturing or exports. So goes consumer spending so goes the GDP.
  6. December 2007 topped all previous records for foreclosures.
  7. The dollar continues to hit record lows. That means savings, what little we have, gets eaten alive. Goods become extremely expensive and foreigners can buy american assets at super discounts.
  8. Right now the US is selling off assets, not commodities, to foreign interests at record levels. Bear Stearns, Merill Lynch, and Citibank are all begging the Saudis and Chinese to bail them out. This is on top of the investment they have already made. Countrywide is on the ropes and the Chinese could make a play there if BofA doesn’t. That means a foreign communistic govt could likely own the largest mortgage broker in the United States. There are special accounts called Sovereign Trust Funds that are being used to make these purchases.
  9. Foreign entities are buying record levels of commercial real estate. My brother,who is ranked in the top 100 REMAX agents in the country, has been approached by Chinese investment arms within the last few months to start buying up BILLIONS of dollars of US property. I too was approached recently by another Chinese entity to find deals for them through my business.
  10. Inflation is here and that means we get slammed twice. Dollars buy less because they are down and inflation makes cost of goods go up more. That means personal financial crisis for modern americans.
  11. Unemployment is on the rise. Topped 5% in December. If the goverment didn’t add jobs we would have seen 17,000 less jobs in the entire country.

More alarming statements from the Comptroller.

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2 Comments

  1. Oh, tecnical bankruptcy to go with the US governments moral bankruptcy. Somehow poetic don’t you think.

  2. Agree. Frankly, the debt limit is just a political game so that the party out of power can complain about the party in power. It has no practical effect. Robert Rubin proved that (when was that, 1995?). If memory serves, we were over the debt limit for about 3 weeks, but Treasury shenanigans papered over it.

    Don’t get me wrong. The US is close to the brink, but not because of the debt limit. It’s like when Bugs Bunny draws a line “I da’st you to step over that line”. –next line — “Well, you’ll never step over this one.” –new line–, etc. until Elmer Fudd steps over the last line and falls off a cliff. Actually, rather prescient now that I think about it.


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