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What A Surprise! It Turns Out They Lied About The Deficit Last Year

Tyler Durden's picture


Submitted by Simon Black of Sovereign Man blog,

Truth can be a damn difficult thing to digest sometimes.

Some of us have been there. You get that news from the doctor that you, or a loved one, has just been diagnosed with a serious disease, and it hits you like a ton of bricks.

Several years ago my father was diagnosed with a brain tumor known as a Glioblastoma (GBM). A GBM diagnosis is essentially a death sentence– it’s one of the most aggressive tumors in existence, and it grows in the part of the body that modern medicine understands the least.

I clearly remember the neurosurgeon telling us, “There have been some miraculous advances in medicine over the last 20-years related to the treatment of cancerous tumors. Unfortunately, this tumor is not one of them.”

It was a tough pill for everyone to swallow… especially my father.

Our natural defense mechanism as human beings is to deny reality. These sorts of things happen to other people, not to us.

It’s this same defense mechanism that leads people to ignore the obvious fiscal realities of their home country despite overwhelming objective evidence.

After all, debt-fueled collapse happens to other countries. Not to us.

We go our entire lives being told that our country is different. We’re special.

We have televised ‘experts’ going on TV explaining why our debts and deficits don’t matter. And Nobel Prize-winning pseduoscientists complaining that our debts and deficits aren’t big enough.

But deep down you know the truth.

In the Land of the Free, the Government Accountability Office (GAO) recently released its 2013 Financial Report of the United States government.

This is the government’s best attempt at an honest accounting of its books. And even though they use a different accounting system that gives them special advantages, the picture is still remarkably bleak.

We all know that the US government has racked up a substantial debt; as of this morning, total outstanding public debt is $17,546,814,482,078.90. ($17.5 trillion)

But it’s not all about the debt. Debt is not necessarily evil… and it’s important to look at the situation qualitatively in addition to quantitatively.

Let’s drop a few zeros and consider this in terms of personal finance.

Assume you had $1.75 million in total debt. That sounds like a lot to most people.

But if you had $3 million in liquid assets to offset the debt, plus $500,000 in annual income to pay interest, living expenses, and just about any contingency that could come your way, you’d be in great shape.

It would be even better if that $1.75 million in debt financed a lucrative real estate investment which was generating a 25% cash-on-cash return for you.

But that’s not the case for the US government.

Despite the Obama administration touting a budget deficit of “only” $680 billion in 2013, the GAO’s more accurate accounting shows a total government cost of $3.8 trillion on total revenue of $2.8 trillion.

In other words– the administration wasn’t exactly honest with the American people– the deficit was more like $1 trillion, not $680 billion. But it gets worse.

The GAO added up ALL the US government’s assets in 2013. Aircraft carriers. The highway system. Land. Cash and financial assets. The total is $2.97 trillion.

The liabilities, on the other hand, total $19.88 trillion. This includes the official public debt, plus all sorts of IOUs and loan guarantees.

This means the net EQUITY of the US government is minus $16.9 trillion.

Moreover, the US government’s cash position is a mere $206 billion… roughly 1.1% of its public debt. This isn’t enough to cover net interest payments for the next year.

Unlike a savvy investor who borrows cheap money to purchase productive assets, the US government borrows money to pay interest.

Quantitatively AND qualitatively, the data point to an inevitable conclusion: despite all the propaganda, this is NOT a risk free environment.

And understanding these trends and consequences is absolutely critical to your long-term financial survival.


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Thu, 03/20/2014 - 14:47 | 4573695 MFLTucson
MFLTucson's picture

 I would like an example of one thing this group has told us the truth about in the past 5 years.

Thu, 03/20/2014 - 14:57 | 4573746 Greenskeeper_Carl
Greenskeeper_Carl's picture

I ignore any deficit projection they publish anyway. I look at the GAAP deficit, which has been running at 5-6 trillion a year at least, and will continue to grow in the coming years. That's the one that really matters anyway. Try as they might to pretend it doesn't exist, it most certainly does.

Thu, 03/20/2014 - 15:02 | 4573777 RevRex
RevRex's picture

What hasn't Obama lied about? Is it really NEWS to report that Obama lied? NEWS would be when Obama told the truth, but I guess there would be no reports at all then...would there?

Thu, 03/20/2014 - 15:32 | 4573953 gmrpeabody
gmrpeabody's picture

Right..., and the Feds are gonna taper... ROFLMAO

Thu, 03/20/2014 - 15:40 | 4574012 DoChenRollingBearing
DoChenRollingBearing's picture

They lie!  They lie!

"You lie!"  "You lie!"

Ha ha ha ha ha ha ha ha ha!

Ha ha ha ha ha ha ha ha ha!


Obama is a liar, LOLOLOL..., WTF is new?!


C´mon, ZH Obama voters, fess up!  U wuz punked!

Thu, 03/20/2014 - 16:49 | 4574323 Herd Redirectio...
Herd Redirection Committee's picture

As mentioned above, look at the GAAP deficit.  Its WAY more than $1 trillion!  The gov't issues promises like there is no tomorrow (hmmm...) and between Social Security and Medicare and pension promises this machine grinds to a halt long before 2023.  IMHO.

Thu, 03/20/2014 - 18:20 | 4574620 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ya, we have passed the 'event horizon' of debt creation. It took us over 200 years to create the first 8 trillion of debt, and less than a decade to crest the next 8T. It really started to accelerate once we left the gold standard. And it will probably double again in the next decade. Hedge accordingly.

Thu, 03/20/2014 - 21:32 | 4575260 philipat
philipat's picture

Damn!! So it's not true that Simon (aka International man of mystery) was on MH370??

Thu, 03/20/2014 - 15:51 | 4574071 BurningFuld
BurningFuld's picture

I'll see your ROFLMAO...and raise you two ROFLMAO's.

Thu, 03/20/2014 - 16:28 | 4574246 Squiddly Diddly
Squiddly Diddly's picture

Somehow, I fail to see the humor. We know we're just talking about rearranging the deck chairs on the Titanic.

Thu, 03/20/2014 - 17:27 | 4574447 kchrisc
kchrisc's picture

Obama was thought to be the BEST liar to represent the owner of the lies'.


"To illegit to quit."

Thu, 03/20/2014 - 14:58 | 4573758 Ham-bone
Ham-bone's picture

March 3rd, 2009 - President Obama says "now is a good time for investors to buy stocks"...

Thu, 03/20/2014 - 15:08 | 4573804 NOTaREALmerican
NOTaREALmerican's picture

Ya gotta admit, he nailed THAT one.

Wish I had gone all in then.  

I think between Obama's stock calls and Cheney's economic views on deficits the US is in pretty good financial hands.

Thu, 03/20/2014 - 15:40 | 4574007 curbyourrisk
curbyourrisk's picture

It is easy to nail that, when you control the man that controls the fed that controls the markets.

Thu, 03/20/2014 - 15:19 | 4573867 moneybots
moneybots's picture

March 3rd, 2009 - President Obama says "now is a good time for investors to buy stocks"...


translation: March 3rd, 2009 - Now is the time for an even more massive financial fraud.

Thu, 03/20/2014 - 15:31 | 4573939 Non Passaran
Non Passaran's picture

But they always say that.

Did any US prez ever appeal to sheeple to sell or short US stocks?

Thu, 03/20/2014 - 16:37 | 4573977 Ham-bone
Ham-bone's picture

Obama (America's 1st financial advisor/president) has maintained his buy and overweight rating...with special emphasis on paper ponzi "assets"

Obama also maintains an underweighting of "evil axis", Russia, and any other "enemy of the state" an extreme sell call on all PM's in conjunction with his employer, JPM, and Chicago partner, COMEX.

Thu, 03/20/2014 - 14:59 | 4573761 YHC-FTSE
YHC-FTSE's picture


I tried to squeeze out an answer for the last 5 mins and strained so hard I almost sharted.

Thu, 03/20/2014 - 15:05 | 4573788 doctor10
doctor10's picture

that crap is enough to make a good American think about becoming Russian-or at leats Crimean!!


Russia has no debt.NADA. At least relatively speaking

Thu, 03/20/2014 - 15:25 | 4573911 BabylonDeer
BabylonDeer's picture

Could someone tell my why the colors used to show the GDP% of the country debt has nothing to do with something that visually demonstrate the "seriousnes" of it?. I mean US 103% of GPD - Blue, UAE 16% - Red?. WTF?

Thu, 03/20/2014 - 15:48 | 4574054 ejmoosa
ejmoosa's picture

We also seem to forget that GDP is not profit or income.  You cannot pay off the debt with GDP.  You can only pay it off from income or profits.  And that is MUCH MUCH MUCH lower than GDP.

Thu, 03/20/2014 - 17:29 | 4574451 kchrisc
kchrisc's picture

"Russia has no debt.NADA. At least relatively speaking"

You mean Russia is not owned, yet, by Israel?! That's one.

Thu, 03/20/2014 - 15:07 | 4573800 KickIce
KickIce's picture

President Obama will be at the golf course today.


President Obama and his family will be in ___________ (country) on another vacation.

Thu, 03/20/2014 - 19:51 | 4574935 A Nanny Moose
A Nanny Moose's picture

If you like you plan, you can....oh nevermind.

Thu, 03/20/2014 - 14:47 | 4573700 SteveNYC
SteveNYC's picture

Duh: $85bn x 12 = $1.02 Trn

Yeah, I'd say its about accurate. Fancy that, the ENTIRE deficit was conjured out of 1s and 0s..........

Thu, 03/20/2014 - 15:03 | 4573781 McMolotov
McMolotov's picture

Time to bust out the trillion dollar coin idea again.

Thu, 03/20/2014 - 15:31 | 4573946 krispkritter
krispkritter's picture

They're going to need a Monster Box of them.

Thu, 03/20/2014 - 15:46 | 4574042 Angus McHugepenis
Angus McHugepenis's picture

No need for carrying around heavy metals when you have this: (opens in new window)

Thu, 03/20/2014 - 15:19 | 4573868 Pee Wee
Pee Wee's picture

Good one, except it is conjured out of your savings, inflation and lower earnings.

Nice try, though.

Thu, 03/20/2014 - 20:36 | 4575097 TheRedScourge
TheRedScourge's picture

The Fed's balance sheet has nothing to do with the Treasury's balance sheet. If they were combined though, then it would be $2 trillion deficit a year.

Thu, 03/20/2014 - 14:47 | 4573704 PHantomofthemarkets
PHantomofthemarkets's picture

Who cares??? As long as the markets brings us profits we can keep banning Russian terrorists.

Thu, 03/20/2014 - 15:12 | 4573824 CrashisOptimistic
CrashisOptimistic's picture

I don't understand this article.

I went through the links in the article and they quote the $680 Billion deficit.

Fri, 03/21/2014 - 09:25 | 4576518 Tall Tom
Tall Tom's picture

On Page 44 of the Financial Statement pdf it shows a 1.0894 Trillion Dollar Deficit.


Click on the Financial Statements link and download the pdf file.

Wed, 03/26/2014 - 01:52 | 4592955 UnicycleBen
UnicycleBen's picture

Did you actually read that page of the report? Did the author of the article?

That $1.0894 trillion number is for 2012. Look at the top of the column!

The report consistently confirms the administration's $680.3 billion figure.

I have no idea whether that number is correct or not, but the core assertion of this article and your comment-- that the number changed-- is simply, factually, wrong.

Thu, 03/20/2014 - 14:49 | 4573709 Future Jim
Future Jim's picture

Relax ...

US Federal Debt – Problem Solved

The American government has been spending trillions of dollars on programs it had no Constitutional authority to create, and such unconstitutional expenditures exceed the amount of the federal debt. Therefore,

The federal debt is unconstitutional.

Not only are most government programs themselves unconstitutional, but the debt used to pay for these unconstitutional programs, which were created by previous taxpayers, is paid for by future taxpayers. Therefore,

The federal debt is Taxation without Representation.

Taxation without representation is also unconstitutional. In fact, it is the reason America seceded from the British empire.

Given that the US Constitution is pretty simple, then anyone who loaned money to the US government should have known that they were loaning money to a fraudulent and illegitimate enterprise and thus should not expect repayment.

Of course, there would be a huge consequence – no one would be willing to loan money to the US government again until it started obeying the Constitution, which would be ...


Thu, 03/20/2014 - 16:14 | 4574182 cynicalskeptic
cynicalskeptic's picture

The Constitution has been acknowledged ONLY by its violation for some time now.


No worry though.  It's easy to pay off TRILLIONS in debt if you don't given a damn about the purchasing power of your money.  

I've got a Zimbabwe banknote that's worth $Zim 100 TRILLION.  That's what happens when you can print away (at least until they won't sell you any more paper - a non-issue for the US where 'money' is created with keystorkes on a computer).

Only problem is that when you reach this point, your savings are worthless and a loaf of bread costs $1 Trillion - or at least a few hundred billion.


There's a reason our Founding Fathers gave government the power ONLY to COIN Gold and Silver - specifically REFUSING government the power to print paper money.  But THAT concept was thrown out the window some time ago.......  Remember when LBJ said that removing silver from coins meant NOTHING - that there would be NO DIFFERENCE in the value of your money?  Candy bars that cost 10 cents then now cost $1.50........  project that out into the future on an exponential curve.


Thu, 03/20/2014 - 16:34 | 4574278 Squiddly Diddly
Squiddly Diddly's picture

Confiscation of 401k's, pensions etc will be considered constitutional.  If you can't hide it they will find it.  They're broke. 

Thu, 03/20/2014 - 17:37 | 4574478 kchrisc
kchrisc's picture

The Restoration of the Constitution begins and ends with Article 3, Section 3.


"My guillotine has a 'feet first' option."

Thu, 03/20/2014 - 14:49 | 4573710 highly debtful
highly debtful's picture

At this stage, a lie more or less...

Thu, 03/20/2014 - 14:49 | 4573712 syntaxterror
syntaxterror's picture

The bigger surprise would be if they DIDN'T lie about it.

Thu, 03/20/2014 - 14:50 | 4573713 astoriajoe
astoriajoe's picture

deleted repeated comment.

Thu, 03/20/2014 - 15:10 | 4573813 NOTaREALmerican
NOTaREALmerican's picture

End The Fed.

Thu, 03/20/2014 - 14:50 | 4573717 Sleepless Knight
Sleepless Knight's picture

What a surprise. Business as usual. Without a debt ceiling, the debt is going to rocket staright up. Every government crook is going to try get the most he can before this all collapses.

Thu, 03/20/2014 - 15:02 | 4573776 Winston Churchill
Winston Churchill's picture

Better be quick.The only question is whether it implodes on its own, or gets an assist.

Saudi looks very vulnerable about now.A twofer from Putin's position.

People in glass houses shouldn't throw their weight, or anything else, around.

Thu, 03/20/2014 - 16:38 | 4574289 RafterManFMJ
RafterManFMJ's picture

WTF are you on about? We've had DOZENS of debt ceilings ... Problem should be over by now, right?

Thu, 03/20/2014 - 14:58 | 4573743 JustObserving
JustObserving's picture

What no one deny is that US debt and unfunded liabilities per taxpayer are $1,250,000 and rising at $70,000 per year per taxpayer.

Since when has Obama ever told the truth?  He has lied about everything.  He handed US sovereignty on a silver platter to a foreign power in March 2009 when he asked the NSA to hand all its raw data including that on Americans to Israel without any legal restrictions.  Then he almost lied the US to a major war with Syria:

Pulitzer Prize-winning investigative journalist Seymour Hersh has published an article demonstrating that the US government and President Barack Obama knowingly lied when they claimed that the Syrian government had carried out a sarin gas attack on insurgent-held areas last August.

If it weren't for lies, Obama would have nothing to read from his teleprompter. 

Thu, 03/20/2014 - 16:17 | 4574202 cynicalskeptic
cynicalskeptic's picture

Not just Obama.  All US Presidents since Carter - or maybe even earlier - have been figureheads serving TPTB.  The Republic has been dead for some time and the Empire is collapsing at a fast-forward rate.  They will try and hold it together at the end of a gun but when you can't afford the bread and circuses any more things get ugly.

The new dark ages are coming fast - with Serfdom the fate for most.

Thu, 03/20/2014 - 14:57 | 4573749 auntiesocial
auntiesocial's picture

for all of the people / naysayers yelling conspriacy / bullhockey.............. there needs to be a separate column / section for appy-polly-loggies...

Thu, 03/20/2014 - 14:58 | 4573751 Atlantis Consigliore
Atlantis Consigliore's picture



$ 1 TRILLION DOLLARS, MR POWERS, Finger and smirk finger to lips.

Thu, 03/20/2014 - 14:58 | 4573755 pound the vix
pound the vix's picture

If a Democrat administration Lies in Washington and the press does not report it, did the lie actually happen.

Thu, 03/20/2014 - 15:17 | 4573756 ebworthen
ebworthen's picture

The government can send me my check for $3 Million tax free now.

If they can print money, let's get started.

Why owe anyone anything?

Just send the check.

Thu, 03/20/2014 - 14:59 | 4573760 BrigstockBoy
BrigstockBoy's picture

Illiquid and insolvent. Who did S&P just downgrade?

Thu, 03/20/2014 - 15:01 | 4573772 Anusocracy
Anusocracy's picture

Themselves if they were honest.

Thu, 03/20/2014 - 15:01 | 4573774 NOTaREALmerican
NOTaREALmerican's picture

I think Dick Cheney said Reagan proved deficits don't matter, so what difference does it make if you lie about the size of something that doesn't matter.

(Don't females tell guys this all the time, too?)

Thu, 03/20/2014 - 15:09 | 4573810 RevRex
RevRex's picture

I think you are a sniveling buffoon who slurps on Obama's member.


Is this Reggie Love, Kal Penn, Bobby Titcomb, or LANCE bASS?

Thu, 03/20/2014 - 15:28 | 4573930 NOTaREALmerican
NOTaREALmerican's picture

Re: I think you are a sniveling buffoon

Huh,  and I think you're a Red Team voting dumbasses probably living off of some Big-Gov scam you can't comprehend is socialism (or you do comprehend it's socialism but are a normal duplicitous "Conservative" asshole).

But, I guess that makes us even.

Thu, 03/20/2014 - 16:06 | 4574145 Carl Popper
Carl Popper's picture

Deficits dont matter until they do

Thu, 03/20/2014 - 16:15 | 4574186 Carl Popper
Carl Popper's picture

Deficits dont matter until they do.

Thu, 03/20/2014 - 16:34 | 4574275 moonman
moonman's picture

Just ignore the idiot and his less than a month of being here. Probably does not even know who MDB is

Thu, 03/20/2014 - 16:21 | 4574222 cynicalskeptic
cynicalskeptic's picture

When you honestly believe you can write your own history, you've stepped over the threshold into never-never land.

The neo-cons honestly thought they could control the world and its resources by force - without any blowback.........   hasn't worked out so well but they're holding course.  God Help us all.

Thu, 03/20/2014 - 15:03 | 4573779 steveo77
steveo77's picture

Speaking of truth!

I had a comment from a New Mexico resident to the effect of "what does all this engineering gobbledegook  really mean. 

I spent 3 hours writing up a summary which I think can be understood by most lay people.   Check it out, pass on the link to others who can benefit.   Truth benefits the recipient.

Thu, 03/20/2014 - 15:32 | 4573855 ebworthen
ebworthen's picture

Imagine a circle of six 12 year old children; you place a loaded six-shot revolver in the center of the circle and leave the room.

The children in the circle are humanity; the loaded six-shot revolver is nuclear energy.

Thu, 03/20/2014 - 15:35 | 4573968 orez65
orez65's picture

"... the loaded six-shot revolver is nuclear energy."

I believe that you are the 12 year old child.

When "environmentalists" talk about a "renewable energy economy" they don't tell you that it requires a reduction of the human population to about 500 million people.

That's about a 95% reduction from the existing 7 billion people in the world today.

There can not be enough energy from windmills and solar panels to support 7 billion people.

So if you would please blow your brain out on You Tube to show us by example that you know what you are talking about, maybe others will follow.

Thu, 03/20/2014 - 18:02 | 4574250 ebworthen
ebworthen's picture

What you say about too many people and energy is true.

After Fukushima (Chernobyl, Three Mile Island) I see nuclear energy as suicidal in the long run - adults are not in charge.

(DEVO - "It Takes a Worried Man", the Spuds with Boogie Boy working at Cal-Neva Nuclear Energy, circa 1979 - link opens in new window/tab)

Thu, 03/20/2014 - 20:28 | 4575071 Nick Jihad
Nick Jihad's picture

One problem with this view, is that all of the regulation that has evolved to try to ensure the safety of pressurized light water reactors, has had the perverse effect of discouraging safer designs from being developed. As we saw with TMI and Fukushima, the fuel in a water-cooled reactor must be immersed at all times, but the water will only stay liquid if kept under many atmospheres of pressure.

Thu, 03/20/2014 - 16:01 | 4574118 NOTaREALmerican
NOTaREALmerican's picture

That post made me laugh.    (The images, I mean, not the politics of it)

It could be used to explain many things going on:  the revolver is ______________.

Funny one.

Thu, 03/20/2014 - 15:03 | 4573780 horseman
horseman's picture

"Assume you had 3 mil in liquid assets and 500k income stream"   What country is he talking about?  Here in the US, which is whose deficit he is referencing, most families make about 40k,  with people making about 200k singled out for additional tax due to excessive wealth.  This article is beyond reality.

Thu, 03/20/2014 - 15:28 | 4573925 Non Passaran
Non Passaran's picture

Read that and the rest of his example as "300K in liquid assets and 50k income stream" and stop bitching.

Thu, 03/20/2014 - 15:05 | 4573786 yogibear
yogibear's picture

Eric Holder has crushed S&P, Moodys and Fitch.

The credit rating of  the US should be a lot lower.

Reason enough for countries to dump the US dollar with a passion.


Thu, 03/20/2014 - 15:06 | 4573793 SAT 800
SAT 800's picture

Making money on my short EUR/USD contracts; and the one ceremonial GBP/USD short; and I put on some short June Cattle contracts today @136.75. Hoping "the fever has broken in that hugely overbought market>

Thu, 03/20/2014 - 15:09 | 4573799 Save_America1st
Save_America1st's picture

And they're also bragging that they stole a record amount of taxes from our hides last year also.  But whether that's true or not is unimportant since tax revenue goes into the pockets of our foreign off-shore bankster overlords who own the Federal Reserve and the IRS and is not used to pay down any fucking debt. 

The Farce is fucking strong with these evil scumbags...

Thu, 03/20/2014 - 15:07 | 4573801 Joebloinvestor
Joebloinvestor's picture

Author forgets to mention that when you control the printing press, you are never out of money.

It may be worthless at some point, but with a reserve currency, you can bet everyone else will suffer along with you.

Thu, 03/20/2014 - 15:17 | 4573859 Dr. Engali
Dr. Engali's picture

"Author forgets to mention that when you control the printing press, you are never out of CURRENCY".


There fixed that for you.

Thu, 03/20/2014 - 15:23 | 4573898 Ban KKiller
Ban KKiller's picture

AND you control the accounting! GAAP? That is for know, honest people. 



Thu, 03/20/2014 - 15:08 | 4573805 machineh
machineh's picture

The liabilities, on the other hand, total $19.88 trillion.

... EXCLUDING Soc Sec and Medicare, which are treated as 'off balance sheet' because CONgress can cencel them at any time.

Including those large-scale Ponzi schemes, liabilities are closer to $100 trillion.

Thu, 03/20/2014 - 15:18 | 4573864 NOTaREALmerican
NOTaREALmerican's picture

Re:  liabilities are closer to $100 trillion.

One person's liabilities are another person's assets.

But, really, who's counting.

Thu, 03/20/2014 - 15:32 | 4573950 JustObserving
JustObserving's picture

Kotlikoff has unfunded liabilities at $233 trillion and rising at $11 trillion a year.

Thu, 03/20/2014 - 15:10 | 4573814 youngman
youngman's picture

If that was a private business with that much movement in the numbers...I think you would be in trouble....680 to 1 trillion is quite  a spread...I woould want to know the true numbers to make my decisions...

Thu, 03/20/2014 - 15:11 | 4573820 IridiumRebel
IridiumRebel's picture

Serious question: Is there anything they do NOT lie about? Anything? 

Thu, 03/20/2014 - 15:16 | 4573850 Dr. Engali
Dr. Engali's picture

Yes.... I'm lying.

Thu, 03/20/2014 - 15:37 | 4573984 Angus McHugepenis
Angus McHugepenis's picture

Lies (and Hope/Change) only matter to those being lied to.

Thu, 03/20/2014 - 15:13 | 4573830 Pig Circus
Pig Circus's picture

Halt News: O'DumbShit is cooking the books... Bunch of Ball-Washing Marxist Sodomites.

Thu, 03/20/2014 - 15:20 | 4573881 Ariadne
Ariadne's picture

Jump, you fuckers. 

And free Bradley Manning. And Jared Loughner. Apparently, he was right.

Thu, 03/20/2014 - 19:11 | 4574793 Westcoastliberal
Westcoastliberal's picture

I'd like to add amnesty for Edward Snowden to your list.

Thu, 03/20/2014 - 15:22 | 4573891 Hayabusa
Hayabusa's picture

Why is this even news?  Politicians lied... that's not news it's habitual behavior the vast majority of the time.

Thu, 03/20/2014 - 15:24 | 4573907 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

And gold, which fell rationally last year because everyone could see that gov't finances were under control has already rocketed back up to $1900 on this news.


I don't even have to look at the current price for confirmation.  Because markets are efficient I know this has happened.

Thu, 03/20/2014 - 15:28 | 4573931 moneybots
moneybots's picture

In other words– the administration wasn’t exactly honest with the American people– the deficit was more like $1 trillion, not $680 billion.


Now that's austerity!!!!!!!!!

Thu, 03/20/2014 - 15:32 | 4573949 Anonymouse
Anonymouse's picture

$16.9 trillion in negative net equity is no problem.

When you add the goodwill on everything from the Louisiana Purchase to Kim Kardashian, we're surely in the quadrillions of positive equity.

Next problem....

Thu, 03/20/2014 - 15:37 | 4573987 yogibear
yogibear's picture

Time for all those exporting to the US to significantly raise prices or demand some other means of exchange.

Thu, 03/20/2014 - 15:47 | 4574037 JR
JR's picture

Congress long ago, by accepting Keynesian economics, decided to go along with large deficits by sowing the seeds of Fabian socialism in Washington and by the 16th amendment that gave the federal government unrestricted access to the wealth of Americans:

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. -- February 3, 1913

So exactly what is Keynesian economics?

John Stormer (None Dare Call It Treason) says that it is the means whereby “collectivists have grabbed for control of the federal government” and skillfully used the ’economic’ theories of John Maynard Keynes, a British Fabian economist, as “the vehicle for buying the votes and support of the masses with their own money.”

In the typical Fabian fashion of “never calling socialism by its true label” as advocated by George Bernard Shaw in his “Intelligent Woman’s Guide to Socialism and Capitalism,” six-time Socialist candidate for US president, Norman Thomas, nonetheless went on to say in A Socialist’s Faith:

“:…Keynes has had a great influence and his work is especially important to any re-appraisal of socialist theory. He represents a decisive break with laissez-faire capitalism.”

And now that those who get the grants and work with the government and the Fed are all Keynesians, the results are in: the necessary economic collapse of America as a prelude to the SDR and a one-world socialistic state.

One-time Communist John Strachey, a member of the British Fabian Society and War Minister in the Labor Government of Great Britain in 1950, explains:

“The positive part of Keynes’ work was a demand that capitalism should now be regulated and controlled by a central authority. The principal instruments of its policy should be variations in the rate of interest, budgetary deficits and surpluses, public works and a redistribution of personal incomes in equalitarian direction.”

Although Keynes wrote to Shaw before publishing his major work, The General Theory of Employment, Interest, and Money, that “when my new theory has been duly assimilated  and mixed with politics and feelings and passions (blended with media and press propaganda of hate and fear), I can’t predict what the upshot will be in its effect on actions and affairs,” we now know, don’t we?...

...a new age of collectivism via debt slavery and the wipeout of America's most solid citizens -- the thrifty and the hard-working middle-class.

Thu, 03/20/2014 - 20:34 | 4575088 Nick Jihad
Nick Jihad's picture

Well, it's not as if Keynes persuaded any of these people that central planning and big government were good ideas. Those were their views since before Karl Marx. So as far as they're concerned, Keynes was endorsing _their_ views, not the other way round.

Thu, 03/20/2014 - 15:46 | 4574041 toros
toros's picture

"Gov't held about $3T in assests, comprised mostly of loans receivable (primarily student loans)...

Thu, 03/20/2014 - 15:47 | 4574050 toros
toros's picture

$1T comprised mostly of ...

Thu, 03/20/2014 - 15:49 | 4574059 justsayin2u
justsayin2u's picture

Lever up ya bunch of pussies.  If 50 to one works for best and brightest at the big banks its gotta work for Bamy & Co.  More social spending, give everyone in the US a million bucks to spend - what could possibly go wrong.  Just ask Bill Black or Cullen Roche or Krugman - or Bamy hisself MMT to the Moon baby.

Thu, 03/20/2014 - 15:51 | 4574073 Stuck on Zero
Stuck on Zero's picture

All debt is evil when it is left for future generations to pay. Period.


Thu, 03/20/2014 - 21:20 | 4575232 Nimby
Nimby's picture

What about debt used to build a bridge that future generations get to use?  Or a hydroelectric dam that provides them power?  Is that kind of debt OK?

If it isn't ok, then why should I (the present) shoulder 100% of the cost of a long-lived public asset? 

Thu, 03/20/2014 - 22:51 | 4575487 kwality
kwality's picture

Because what the debt is going to pay mostly is NOT long-lived public assets or sustainable institutions.  It's going to pay for people's day-to-day needs through government transfer payments.  It's also going to pay college presidents and university football coaches, doctors, bankers, corporate CEOs, defense contractors, and all the other people who live very comfortable government-subsidized lifestyles.  It's going into the GDP measurement one way or the other, and the funny thing is, the more they pump in the less effective it gets over time until, as we see now, it will turn and bite like a viper.


Thu, 03/20/2014 - 16:09 | 4574154 Dead Man Walking
Dead Man Walking's picture

Dont forget congress can eliminate the debt owed to the fed by simply voting it gone.-doesnt solve all, but some debt would be eliminated. It's a start.

Thu, 03/20/2014 - 16:20 | 4574220 Cupid Stunt
Cupid Stunt's picture

NOW.....I would never have thunk that.......

Thu, 03/20/2014 - 16:27 | 4574242 blindman
blindman's picture

so we have the federal reserve as the central bank
of/for the usa (and given the feds make up and history)
and the phrase long term financial survival is employed
as a potential outcome or goal?
i sense a fundamental disconnect in the logic or
use of the language.
money debt is issued out of thin air based on nothing
more than the remembrance of a fart, if that,
and that is the strong argument for monetary
and fiscal long term survival.
anyway ....
sovereigns only employ accounting to intimidate
their competition, other than that they never
take it seriously.

Thu, 03/20/2014 - 16:31 | 4574261 jomama
jomama's picture

A thousand seconds is about 16 minutes.
A million seconds is about 11 days.
A billion seconds is about 32 years.
And one trillion seconds is about 32,000 years.

Thu, 03/20/2014 - 16:45 | 4574306 QQQBall
QQQBall's picture

When i was younger, I could never figure out why Jews didn't flee Nazi Germany before it was too late. Now, approaching older age, I understand why. It is not just leaving your job, your assets, etc., its going contrary to a normalcy bias. The jig is up in the USSA - time to get out. I have lived all over the world and one thing is clear - Amreikans to a large degree and ignorant and stoopid. The gov't is corrupt.... on a global basis. it is not to hard to make a case that USSA is in fact The Great Satan...

Thu, 03/20/2014 - 17:26 | 4574444 NOTaREALmerican
NOTaREALmerican's picture

Re: it is not to hard to make a case that USSA is in fact The Great Satan

There has to be one country that's the world's biggest dick, it just happens to be us now.   Before us, it was the UK, before the UK Spain.   France took a shot at it,  and so did Germany.

If you were lucky enough be born without political/economic morality OCD, or in New Zealand or Australia none of this would matter to you.  

Just brain chemistry and luck.

Thu, 03/20/2014 - 18:57 | 4574746 optimator
optimator's picture

The average Jew in Germany in the 30's considered himself German and somehow just thought the Government would consider them as such and at some point stop the discrimination.  Wishful thinking of course, in hindsite.  The Jew, Zionists, that caused the problems were the first ones to follow their wealth out of the country before it was too late.  For some it was too late as dual citizenship was not available to them at that time and they had to rely on their Deutches Reich passposts.  

Thu, 03/20/2014 - 16:48 | 4574321 HeHateMe
HeHateMe's picture

This particular piece has the highest value/words ratio of anything I've read to date.

Thu, 03/20/2014 - 17:01 | 4574324 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Moreover, the US government’s cash position is a mere $206 billion… roughly 1.1% of its public debt. This isn’t enough to cover net interest payments for the next year.

And that is why interest rates on Treasuries will be held down at all costs no matter what bullshit Yellen spews.

The government goes bankrupt so does their mercenary global police force's ability to enforce their control of the game.

Stop paying your taxes bitchez. Time to get the American Revolution 2.0 started. It starts when they are forced to admit bankruptcy not before. Can't allow them to dig in the defensive structures any deeper. Consent of the governed through nonparticipation for starters to exert hard power. Stop being a bunch of effeminate social eugenic programed enablers.

It should have happened in 2001 but they delayed it and started putting in the self preservation system and should have happened again in 2008 but they managed to stave it off because the protection system wasn't fully operational can't allow them any more time or it is only going to be that much harder to dislodged these parasitic pricks and take back control of our country and resources.

Thu, 03/20/2014 - 17:05 | 4574385 BullyBearish
BullyBearish's picture

Why do they lie?


"You belong to your father, the devil. You want to obey your father's wishes. "From the beginning,

the devil was a murderer. He has never obeyed the truth. There is no truth in him. When he lies,

he speaks his natural language. He does this because he is a liar. He is the father of lies."

Thu, 03/20/2014 - 17:09 | 4574393 foodstampbarry
foodstampbarry's picture

Jesus, I wish I was 80 and getting close to checking out. The future looks pretty grim.

Thu, 03/20/2014 - 17:22 | 4574434 NOTaREALmerican
NOTaREALmerican's picture

There's always New Zealand or Australia.  

Thu, 03/20/2014 - 17:39 | 4574471 kurt
kurt's picture

There is an illusion at work. In banking and government and boardrooms, the closer you are to the money pump the richer you feel; the heat and thrum of the equipment generates confidence. In less moral enclaves there exists a gleeful joy at misallocating actual pallets of cash on transport aircraft (this would be the defense establishments). They look at it like a golden goose that gives and gives, magic, could go on "forever". Just show things blow up from time to time, oh, and kill people.

At the bottom of this fetid pyramid are protohumans in their individual gigs with a heady little faucets of lucre. As long as they suck, and something comes out, they're good. Below them, are those that scream and cry BEFORE they lose their teat, these are politicians. Below them are the demons of planning, NGO's, killers, those unhinged souls dedicated to poisoning you with flouride and such, preferably, slowly, and your kids too. 

Sleep well little prince.

Thu, 03/20/2014 - 17:48 | 4574514 Spungo
Spungo's picture

Don't worry guys. We can printing press our way out of this.
-Mike Norman

Thu, 03/20/2014 - 17:49 | 4574519 1stepcloser
1stepcloser's picture

Yellen needs a code red, she is a substandard central banker..

Thu, 03/20/2014 - 17:50 | 4574521 Quinvarius
Quinvarius's picture

And that balance sheet is why they will bitcoin the shit of gold to balance their debt and currency.  There is no other way to do it except printing the money, and they don't want to do that.  They need an asset.  And this is always gold's role.

Thu, 03/20/2014 - 18:41 | 4574689 venturen
venturen's picture

Welcome to accounting illinois style! 

Thu, 03/20/2014 - 18:54 | 4574741 yellowsub
yellowsub's picture

An honest gov't?  That's a laugh.  

That's the magic of gov't accounting.

Thu, 03/20/2014 - 19:00 | 4574757 Westcoastliberal
Westcoastliberal's picture

What the current regime and the one before it is doing is very similar to a household that cash advances their credit cards to keep their other credit cards current.  And the GAO numbers probably are just as far from the truth as the admin's numbers, so add a zero and round up.

Bottom line, the US is in very deep shit.

Thu, 03/20/2014 - 20:48 | 4575099 Chuck Knoblauch
Chuck Knoblauch's picture

Under the United Nations Biodiversity Treaty, a precious resource—owned by American citizens for over 200 years—has been turned over to the UN's bureaucrats for control. Yes, you and I will continue to pay taxes for the maintenance and upkeep of the Great Smoky Mountains National Park. But we no longer own it. Now, the UN has ultimate jurisdiction. This alone is startling evidence that the once independent nation-state known as the United States of America is going out with a whimper and not a bang. Our sovereignty is coming to an end.

Exclude public lands from the assets column. That includes any minerals, water, natural gas, or oil that may be underneath. If the U.N. wants to sell water from the Great Lakes to China. Done deal! No problem!

We are fucked.

Blame CIA Director Bush for selling your birthright.

Thu, 03/20/2014 - 23:20 | 4575574 AdvancingTime
AdvancingTime's picture

Making the ugly math simple to understand is no easy task, but lets have a go at it. Not lying about the numbers to arrive at a clear picture of reality is important. To make things easy lets us do a bit of rounding off and work with easier to manage numbers.

We will start by placing the population of the United States at 333 million people, that is reasonably close. This means every man women and child, what is important it that this includes infants, children, teenagers, the non working-both self sufficient and those on government assistance, the retired, and the elderly in nursing homes.

How marvelously simple and convenient that this number goes into 1 Billion dollars 3 times. This means that every 1 billion dollars spent by our government represents $3 for every person in America! The article below looks deeper into the ugly math.

Do NOT follow this link or you will be banned from the site!