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Letters by a modern St. Ferdinand III about cults

Gab@StFerdinandIII -

Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands.  Cults everywhere:  Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...

Tempus Fugit Memento Mori - Time Flies Remember Death 

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Friday, January 18, 2013

Real debt levels are 5-10 times the size of the economy.

But by all means - spend more, and print more paper...should work out well.

by StFerdIII

 John Williams at estimates that the real 2012 US budget deficit, using GAAP, was 7 times what the government stated. Would government lie to its own people ? Isn't the worship of the state part of the liturgy of the modern Atheist-Marxist era ? Self-worship and the veneration of the 'kind', 'angelic', 'gentle' government seems de-rigueur.  

Williams states:

Based on generally-accepted-accounting principles—or GAAP-based accounting—the 2012 consolidated financial statements of the United States Government showed a $6.9 trillion deficit for fiscal 2012, up from $4.6 trillion in 2011.  The latest detail showed the uncontainable and uncontrollable actual federal budget deficit to be deteriorating rapidly.  The much-delayed GAAP-based statements were published by the U.S. Treasury, today, January 17th.”

The US government is technically bankrupt since it owes in real debts and in real future liabilities about $88 Trillion or more at the National level. Add in states, bankrupted cities and counties, and you would have a total debt in the US of $100 Trillion or more.

Those deficit numbers [the real deficit of $6.9 Trillion not the stated $1.3 Trillion] reflect consistent GAAP accounting on current fiscal operations, plus year-to-year deterioration in the net present value (NPV) of unfunded liabilities for programs such as Social Security and Medicare.  Reflecting the time value of money, the NPV represents the amount of cash in-hand needed to cover future obligations.

Based on tentative calculations from numbers in the report, total U.S. government obligations—including the NPV of the unfunded-liabilities of social programs—is around $88 trillion, or nearly six-times annual U.S. GDP.”

Governments put private industry executives in jail for 'off the balance sheet accounting', where debts are moved to a 'special vehicle' not connected to the firm or its balance sheet. Yet government officials and politicians are doing the same and lying about the real obligations of the national-socialized political-economy they have erected. I wonder why they would do that ?

For example, in 2011 the Treasury published a report stating that Socialized Health Care liability was $24 Trillion [future expenses in excess of future revenues]; and that Socialized Social Security was $12 Trillion short. In 2012 these numbers will only have worsened. Just from these 2 socialized programs the US has about $40 Trillion in unfunded future debt that must be accounted for on the current balance sheet but is not. Imagine if you just decided that your mortgage debt was not real debt, because it was 'in the future', and that you had in essence, no mortgage liability at all and could put a 0 against long term liability on your own personal balance sheet. You would be accused of insanity and any lender of capital would simply ignore you.

The US is not unique. Every single government at every single level of our socialized world [4-6 levels of caring government], lies about debt, inflation, unemployment, and any publicly available statistic. What it means is that the US and every developed country has a real debt load of 5-10 times the size of their economy. That is bankruptcy.  

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