ENSLAVEMENT & BANKRUPTCY OF AMERICA BY CABAL’S
CEDOMIL VUGRINCIC, M.D., Ph.D. February
2007 M-PAPER 18
Beloveds, global scheme of
Cabal's foreign owned and thus Constitutionally illegal Corp.U.S.
Government, in seeking the
world domination and control, always was, is and will be to "INDEBT,
BANKRUPT, ENSLAVE AND CONTROL" and so this is also their policy and
interest in America. American people have been intentionally and
unconstitutionally enslaved at home while at the same time politically
lured and deluded to serve CABAL's selfish
ego-centric interests abroad.
The below article describes
well the present, Cabal's Corp.U.S. Government
induced, economic reality facing the American people.
THE UNITED STATES IS INSOLVENT by Dr. Chris Martenson The End of Money December 17, 2006
Prepare to be shocked.
The US is insolvent. There
is simply no way for our national bills to be paid under current levels of
taxation and promised benefits. Our federal deficits alone now total more
than 400% of GDP.
That is the
conclusion of a recent Treasury/OMB report entitled Financial Report of
the United States Governmentthat wasquietly slipped out on a
Friday (12/15/06), deep in the
holiday season, with little fanfare. Sometimes I wonder why the Treasury
Department doesn’t just pay somebody to come in at Christmas morning to release the report. Additionally, I’ve
yet to read a single account of this report in any of the major news media
outlets but that is another matter.
But, hey, I
understand. A report this bad requires all the muffling it can get.
In his accompanying
to the report, David Walker, Comptroller of the US, warmed up his audience by
stating that the GAO had found so many significant material deficiencies in
the government’s accounting systems that the GAO was “unable to express an
opinion” on the financial statements. Ha ha! He
really knows how to play an audience!
parlance, that’s the same as telling your spouse “Our checkbook is such an
out of control mess I can’t tell if we’re broke or rich!” The next time you
have an unexplained rash of checking withdrawals from that fishing trip with
your buddies, just tell her that you are “unable to express an opinion” and
see how that flies. Let us know how it goes!
Then Walker went on to deliver
the really bad news:
in both the fiscal year 2006 reported net operating cost and the cash-based
budget deficit, the U.S. government’s total reported liabilities, net social
insurance commitments, and other fiscal exposures continue to grow and now
total approximately $50 trillion, representing approximately four
times the Nation’s total output (GDP) in fiscal year
2006, up from about $20 trillion, or two timesGDP in fiscal year
As this long-term
fiscal imbalance continues to grow, the retirement of the “baby boom”
generation is closer to becoming a reality with the first wave of boomers
eligible for early retirement under Social Security in 2008.
Given these and
other factors, it seems clear that the nation’s current fiscal path is unsustainable
and that tough choices by the President and the Congress are necessary in
order to address the nation’s large and growing long-term fiscal imbalance.
Wow! I know David
vocal lately about his concern over our economic future but it seems
almost impossible to ignore the implications of his statements above. From
$20 trillion in fiscal exposures in 2000 to over $50 trillion in only six
years? What shall we do for an encore…shoot for $100 trillion?
And how about the
fact that boomers begin retiring in 2008…that always seemed to be waaaay out in the future. However, beginning January 1st
we can start referring to 2008 as ‘next year’ instead of ‘some point in the
future too distant to get concerned about now’. Our economic problems need to
be classified as growing, imminent, and unsustainable.
And let me clarify
something. The $53 trillion shortfall is expressed as a ‘net present value’.
That means that in order to make the shortfall disappear we’d have to have
that amount of cash in the bank – today - earning interest (the GAO
uses 5.7% & 5.8% as the assumed long-term rate of return). I’ll say it
again - $53 trillion, in the bank, today. Heck, I don’t even know how much a
trillion is let alone fifty-three of ‘em.
And next year we’d
have to put even more into this mythical interest bearing account simply
because we didn’t collect any interest on money we didn’t put in the bank
account this year. For the record, 5.7% on $53 trillion is a bit more than $3
trillion dollars so you can see how the math is working against us here. This
means the deficit will swell by at least another $3 trillion plus whatever
other shortfalls the government can rack up in the meantime. So call it
another $4 trillion as an early guess for next year.
Given how studiously
our nation is avoiding this topic both in the major media outlets and during
our last election cycle, I sometimes feel as if I live in a small mountain
town that has decided to ignore an avalanche that has already let loose above
in favor of holding the annual kindergarten ski sale.
department soft-pedaled the whole unsustainable gigantic deficit thingy in
last year’s report but they have taken a quite different approach this year. From page 10 of the
The net social
insurance responsibilities scheduled benefits in excess of estimated
revenues) indicate that those programs are on an unsustainable fiscal path
and difficult choices will be necessary in order to address their large and
growing long-term fiscal imbalance.
Delay is costly and choices will be
more difficult as the retirement of the ‘baby boom’ gets closer to
becoming a reality with the first wave of boomers eligible for retirement
under Social Security in 2008
I don’t know how
that could be any clearer. The US Treasury department has issued a public
report warning that we are on an unsustainable path and that we face difficult
choices that will only become more costly the longer we
Perhaps the reason
US bonds and the dollar have held up so well is that we are far from alone in
our predicament. In a recent article detailing why the UK Pound Sterling may
fall, we read this horrifying evidence:
Officially, [UK] public sector net
debt stands at £486.7bn. That's equal to US$953.9bn and represents a little under 38% of annual GDP. Add the state's
"off balance sheet" debt, however – including its pension promises
to state-paid employees – and the total shoots nearly three times higher.
Research by the Centre for Policy Studies in London says it would put UK government deficits
at a staggering 103% of GDP.
If we perform the
same calculations for the US, however, we find
that the official debt stands at $8.507 trillion or 65% of (nominal) GDP but when we add in
our “off balance sheet” items the national debt stands at $53 trillion or 403%
horrifying. Staggering. Whatever you wish to call it. More than four hundred
percent of GDP(!). And that’s just
at the federal level. We could easily make this story a bit more ominous by
including state, municipal and corporate shortfalls. But let’s not do that.
Here’s what the
federal shortfall means in the simplest terms.
1.There is no way to ‘grow out of this problem’. What really jumps out
is that the US financial position
has deteriorated by over $22 trillion in only 4 years and $4.5 trillion in
the last 12 months (see table below, from page 10 of the report). The problem did
not ‘get better’ as a result of the excellent economic growth over the past 3
years but rather got worse and is apparently accelerating to the downside.
weakness will only exacerbate the problem. You should be aware that the
budgetary assumptions of the US government are for
greater than 5% nominal GDP growth through at
least 2011. In other words, because no economic weakness is included in the
deficit projections below, $53 trillion could be on the low side. Further,
none of the long-term costs associated with the Iraq and Afghanistan wars are factored
in any of the numbers presented (thought to be upwards of $2 trillion more).
2.The future will be defined by lowered standards of living. As Lawrence Kotlikoff pointed out in his paper titled “Is the US Bankrupt?”
posted to the St. Louis Federal Reserve website, the insolvency of the US will minimally
require some combination of lowered entitlement payouts and higher taxes.
Both of those represent less money in the taxpayer’s pockets and, last time I
checked, less money meant a lower standard of living.
3.Every government facing this position has opted to “print its
way out of trouble”. That’s an historical fact and our country shows no indications,
unfortunately, of possessing the unique brand of political courage required
to take a different route. In the simplest terms this means you & I will
face a future of uncomfortably high inflation, possibly hyperinflation if the
US dollar loses its reserve currency status somewhere along the way.
Of course, it is impossible to print our way out of this particular pickle
because printing money is inflationary and therefore a ‘hidden tax’ on
everyone. Consider, what’s the difference between having half of your money
directly taken (taxed) by the government and having half of its value
disappear due to inflation? Nothing. Except that the former is political
suicide while the second is conveniently never discussed by the US financial
mainstream press (for some reason) and therefore goes undetected by a
majority of people as the thoroughly predictable outcome of deficit spending.
All printing can realistically accomplish is the preservation of some DC jobs
and the decimation of the middle and lower classes.
In summary, I am
wondering how long we can pretend this problem does not exist. How long can
we continue to buy stocks and flip houses, forget to save, pile up debt,
import Chinese made goods, and export debt? Are these useful activities to
perform while there’s an economic avalanche bearing down upon us?
Unfortunately, I am
not smart enough to know the answer. I only know that hoping a significant
and mounting problem will go away is not a winning strategy.
I know that we, as a
nation, owe it to ourselves to have the hard conversation about our financial
future sooner rather than later. And I suspect that conversation will have to
begin right here, between you and me because I cannot detect even the
faintest glimmer that our current crop of leaders can distinguish between
urgent and expedient.
What we need is a
good, old-fashioned grassroots campaign.
In the meantime, I
simply do not know of any way to fully protect oneself
against the economic ravages resulting from poorly managed monetary and fiscal
institutions. For what it’s worth, I am heavily invested in gold and silver
and will remain that way until the aforementioned institutions choose to
confront “what is” rather than “what’s expedient”. This could be a very