GAO: USA is Insolvent

This isn’t getting a whole lot of press, but Comptroller David Walker has more or less announced that the USA cannot pay it’s obligations at the current rate of taxation. In other words, while we many not be totally broke, we’re headed there. For example, when you include the ‘off-balance sheet’ appropriations the government has used to fund numerous projects in the last 6 years, the national debt currently stands at around $53 trillion (versus the official tally of $8 trillion), which is over 400% of the US GDP, and that’s not counting state, local or personal debt. Chris Martenson’s article does an excellent job of discussing what this means for all of us in the coming years. Hint: It’s not pretty.

People who are holding large amounts of dollars in a savings or money-market account are going to get punished through the mechanism of inflation if nothing else. If you have any tools or other items you are considering purchasing, I would encourage you to think about doing it soon, for this game can’t continue indefinitely. This is especially true for imported goods, which in the USA means more or less everything.

Sooner or later, the dollar will collapse. I think it’s inevitable at this point due to the horrible underlying economic situation the US is wallowing in. What do we do at that point? Re-monetize, of course. Get ready for the Amero, a Euro-clone which promises to be the bastard child of the US Dollar, Mexican Peso and Canadian Dollar if the CFR wonks get their way.

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3 Responses to GAO: USA is Insolvent

  1. […] There have been a number of doom-mongers out there in recent years warning of trouble, along with Comptroller David Walker, who’s been ranting on this subject for a few years now.  When one of the big-wigs at the […]

  2. Stocks in the Toilet says:

    Hey “Storms”, in regard to your comment about “doom-mongers” back in May of this year, I was just wondering…how’d your retirement mutual fund fare this last week? Care to retract? Hmmm?

  3. Bart says:

    You missed the point… I was agreeing with Mr. Walker’s statements entirely. Compared to most pundits and experts out there, he was definitely in the ‘doom & gloom’ crowd… that doesn’t mean he was wrong in his assessments.

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