The Gross Domestic Product (GDP) is all of the goods and services produced in one calendar year by the entire United States workforce – it also includes Federal spending which is a terrible distortion, because the government produces nothing; they only take from producers, but it is included here in what the Federal Reserve lists as $29.374 Trillion!

What is the annual spending of the U.S. government? $6.1 Trillion. That’s a little over 20% of GDP

How much revenue (corporate and individual income taxes combined) does the federal government generate annually? $4.47 Trillion. The difference between the revenue and the spending is what is known as the deficit. Official numbers don’t exactly add up, but then what can you expect from a government that has no budget.

What is the U.S. Annual deficit? $1.83 Trillion – not bad – only about 6% of the GDP.

The acknowledged national debt is $36.9 Trillion. This number reflects the accumulated years of deficit spending. Interest rates must be paid to people or governments who buy U.S. Treasury Bonds with the idea of getting the interest. They are financing America’s profligate spending!

The national debt shows a debt exceeding GDP by just over $7 Trillion. If you scroll down on the above link, you will see that America has an “unpublished” debt of $153 Trillion. That includes all sorts of government promises such as interest, Medicare, Social Security, Pensions etc. Now we’re talking some big money. This writer has seen estimate of more like $250 Trillion in unpublished (a euphemism for unfunded) debt.

America does not have the money unless they print it which will allow them to inflate away the debt, but at the cost of everyone’s purchasing power as well as America’s integrity in the world. It means America is bankrupt, but nobody, at least so far, wants to admit it!

Pensiamento Peligroso