Tyler Durden passes along Simon Black, who notes: “We’re already there.”
Last week in the Land of the Free, I heard a radio campaign ad for a local political candidate while in Texas.
In the ad, he was talking about the debt and excessive government spending. And then he said something along the lines of, â€œWe need to get this under control before America goes bankrupt.â€
â€˜Buddy,â€™ I remember thinking, â€˜America isnâ€™t going bankrupt. It already IS bankrupt.â€™
Just so that we donâ€™t mince words, my dictionary defines â€˜bankruptâ€™ as â€œany insolvent debtor,â€ i.e. a debtor whose liabilities exceeds assets.
Thatâ€™s the US government, by its own admission.
As weâ€™ve discussed before, the US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities.
The liabilities far exceed the assets. Big time. And the hole is getting deeper each year.
At this point the governmentâ€™s net worth is roughly NEGATIVE $17 trillion, about 110% of GDP. Thatâ€™s textbook insolvency.
The only reason the US government is still able to service its debts is because they are borrowing money just to pay interestâ€¦ and because the Federal Reserve keeps printing money to buy up US debt.
These are hardly sustainable fiscal strategies.