U.S. Government Collapse Inches Closer
Each Friday I report on the impending and inevitable collapse of the U.S. Federal Government. These columns generate intense response and regular questions. Today I want to answer a couple of the most frequently asked questions. They may be weighing on your mind.
The most popular question is: “Floyd, how can you make the statement that government collapse is inevitable? You can’t know the future.” My retort is simple. I studied mathematics.
In many fields of knowledge, the answers can get fuzzy. Do we have global warming? Do we have global cooling? Put a group of climatologists in a room and you can find not just two answers, but a multitude of plausible and interesting answers.
However, try the same experiment with mathematicians, and the answers to the problem should be the same. Math doesn’t lie, and the equation doesn’t change. The only change is in the variables, or the inputs.
This is why I can say with total confidence that America is going to collapse. In fact, the collapse of the U.S. government is as inevitable as the collapse of Enron was. Because for the last 40 years, our political leaders have made promises and written checks that they can’t cash.
The Entitlement Equation
This week I reviewed The 2013 annual reports of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. And the picture of the future is quite horrendous. In less than a year, the Social Security program’s unfunded financial obligations rocketed up $1 trillion from last year’s devastating projection of $8.6 trillion.
The bottom line is this: The Social Security program over the next 75 years will require 9.6 trillion more dollars than we have. And the ability to collect enough money within the current tax regime just doesn’t exist.
Our leaders on Capitol Hill and in the White House have promised benefits to people, but the current tax system doesn’t have a chance in hell of ever being able to collect the money to fund these benefits.
What’s worse is that the $9.6 trillion is just the unfunded liability for Social Security. If you look around at the host of other programs, they’re all drastically underfunded too. And the sad reality is that if you stripped average Americans of every dollar, I doubt even then that we could pay these bills.
The entire Gross Domestic Product (GDP) of the United States in 2011 was under $15 trillion, so why do politicians promise benefits that our economy can’t possibly sustain? The only answer is they never studied math. Barack Obama clearly can’t do simple math.
So bankruptcy and collapse are inevitable without a drastic change in the variables or inputs. If we woke up tomorrow and started only spending what we took in, the situation would radically change. But to get politicians to cut benefits to the point of a balanced budget is like asking Lindsay Lohan to give up booze – or better yet, asking John Belushi to give up drugs.
When Will America Collapse?
Above is the second question that I‘m regularly asked. Again I give a simple answer: We’ve already started to collapse.
If you’re under age 30, you know what I mean. Adequate jobs for the under 30 crowd are non-existent. America sticks brilliant minds, holding quality degrees, with jobs like stacking merchandise at Walmart (WMT) or slinging hash at Denny’s (DENN). The young people I know have had great difficulty getting jobs in their chosen field – if they get a job at all. Don’t believe me? Talk to the under-30 crowd near you and I think you’ll find I’m right.
This is due to our government’s policy of de-industrialization. America has slowly liquidated our manufacturing capabilities along with our wealth. And now the world’s richest 1% control 39% of all the planetary wealth.
In contrast, the bottom 50% of people controls just 1% of the world’s money in aggregate. The worldwide financial and political system now delivers and funnels the riches to the very pinnacle of the wealthiest people.
How has this happened, you ask? Well, the global elite have amassed tons of wealth by lending money to the U.S. and other governments. Our debt-based monetary and financial system transfers wealth from average citizens and the government into the hands of the worldwide banking organizations.
Then the “too-big-to-fail” banks use leverage to gobble up everything of value – they want the world’s natural resources, profitable businesses, and real estate. Because they don’t rely on the safety net and social services the politicians have promised the rest of us, they really don’t care if a government collapses.
In the end, it’s this unchecked greed that‘ll end up pushing the government past its tipping point.
Until next time, I remain…
Your eyes on the Hill,