Here's Some Frightening Honesty (Courtesy Of The US Congress)

Tyler Durden's picture

Submitted by Simon Black via Sovereign Man blog,

A member of my staff caught an obscure resolution that was introduced in the US House of Representatives last week—Resolution no. 41.

The fact that there was essentially no coverage of this Resolution really shows how the mainstream media is completely turning a blind eye to the true fiscal situation of the United States of America.

The entire point of the resolution is to say that the federal government is broke.

It can’t pay its own bills, and therefore is shouldn’t be responsible to pay anyone else’s either.

It doesn’t’ take a rocket scientists to figure out what a bankrupt government will do—just like any thief, they’ll go after easy targets first.

The easiest target of all is future generations.

They’re going to run up the debt as high as they can, which essentially means pulling future tax revenues into today. It’s the easiest tax of all, because unborn children do not vote.

The estate tax is another one to watch out for—because, like unborn children, dead people don’t vote either.

We had a great podcast yesterday about retirement savings, where there’s an easy $5 trillion treasure chest for them to raid.

And, of course, there’s the greatest tax of all, the inflation tax, which decreases the standard of living for most of the population as the cost of living rises much faster than incomes.

This Resolution is a pretty scary dose of honesty. But again, what’s even more concerning is that it was just ignored and has objectively a zero percent chance of passing.

I do encourage you to check it out though—even the government is admitting it’s finished.

I’ll quote from the Resolution now without comment and wish you a very pleasant weekend:

Whereas the Federal Government is operating at an annual deficit and is increasing its outstanding debt every year;

 

Whereas the Federal Government, as of January 2015, is carrying more than $18.0 trillion in debt, of which $13.0 trillion is owed to the public and $5.08 trillion is owed to Social Security and other trust funds;

 

Whereas foreign governments, individuals, and corporations as of October 2014 own 47 percent of Federal debt held by the public;

 

Whereas Social Security’s unfunded liabilities in 2014 are $10.6 trillion over 75 years and $24.9 trillion over the infinite horizon;

 

Whereas the Federal debt held by the public is expected to increase by more than $7 trillion from 2014 to 2024 according to the Congressional Budget Office;

 

Whereas more than 16 percent of the entire Federal budget goes directly to States and local governments;

 

Whereas more than 22 percent of total State and local government general revenue comes from the Federal Government according to Census Bureau’s latest Annual Survey of State and Local Government Finance;

 

Whereas several State and local pension plans are expected to fully exhaust their funds within ten years.

*  *  *

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

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CanadaFrank32's picture

Fracking earthquake in Alberta... Check it out!!!

y3maxx's picture

...Would be better if Congress were fracked to kingdom come.

El Vaquero's picture

Congress?  Yeah, frack those motherfrackers. 

knukles's picture

Frightening Honesty?
Shit, sounds more to me like Sanity and Common Sense Prevailing
Fear Porn

Greenskeeper_Carl's picture

10 trillion dollars over the next 75 years?????? ARE YOU FUCKING KIDDING ME???? thats chump change compared the real number. If only we were that lucky. So, who actually proposed this bill?

TeamDepends's picture

Tyler, that should be Obama or pretty much any POTUS since Wilson under water, but certainly not Washington.

Paveway IV's picture

"...Whereas several State and local pension plans are expected to fully exhaust their funds within ten years..."

Try five or six. That means baby-boomers currently in State jobs (~7% of all workers on average) will not only loose thier state pension a few years after retiring, but Social Security will be broke by then as well.

Somewhat less - around 5% of all workers on average - work in Local government jobs. They're pensions are probably going to be gone, too. Think: Detroit.

The there is also the 5% or so that work Federal jobs. Their pensions are probably OK, unless you consider the 25% of all federal workers that work for the post office. USPS pensions are long gone - it's only a matter of time before .gov pulls the plug.

So that cushy goverment job with the fat pension? Yeah, you're all set for a couple of years.

You didn't get screwed out of the American Dream. You HAD it - past tense. Red pill or not, it will then be time to awaken.

Your post-dream future at 70 will consist of opening up a can of dog food for dinner, donning your blue vest and hobbling over to your part-time greeter job at Wal*Mart.

NoDecaf's picture

Hey Simon, Do you see any connection between this bankrupt govt and the proxy war in Ukraine yet?

greyghost's picture

simon the sociopath visits twice this week......god help us.....does this jackass really have three click-bait ad links in his article. well nothing says self promotion better. another useless unpassed unread resolution from the pathological thieves and self promoters in congress and simon says......good grief.

Greenskeeper_Carl's picture

i know a lot of military people. some of the LEAST likely to save anything. No one seems to be paying attention. Everyone who thinks thir govt needs to make cuts also assumes that these cuts won't affect them. It will, probably when they are in their 60's or 70's and its too late to do anything about it. as you said, dog food

cynicalskeptic's picture

Was listening to a local cop - about to retire after 20 years (from a nice safe suburban dept) - rant on about what HE would do if they dared touch HIS pension.  The guy has had a second job but saved little.  Has bought lots of toys - boat and such.   

Yeah... the rest of the world maybe has a 401K - and NOBODY makes up any losses if the market tanks (unlike public pensions where your taxes go up to cover fund shortfalls)..... 

Somehow he thinks HIS pension will be the first priority when the shit hits the fan?!?!?   oh yeah.... of course we'll make sure you're taken care of.... after putting in 20 years even though the rest of us are working 45+ and past 65 when it turns out we can't afford to retire.....

We took one really nice vacation years back - a cruise in Alaska. Most of the people on it were early retirees from state and federal jobs... lots of tier 1 teachers too..... This was their 'norm when it came to vacations.      WTF?

STP's picture

Good article about the pension clawbacks in Detroit!  Wow, they all thought It was hunky dory and boom, they get a notice in the mail, telling them, they've been overpaid for years and now they want the money back.  Ouch!

 

Refuse-Resist's picture

They will use their guns on us.  They will use their legally protected right to use  violence against us to make sure we pay.

 

That is, until enough of us either stop interacting with them, or we say NO MORE.

 

Until then, bend over and don't expect a reach around.

Paveway IV's picture

Would that be the 40% of the population that either works for the government or survives off of some form of government aid, or the 20% under/unemployed that can't afford ammo? 

https://imgflip.com/gif/gv1ky

Greenskeeper_Carl's picture

dude i live near a major cruise ship port, you don't have to tell me about who usually takes those cruises. Ive seen two teachers married, or two people who work for some useless agency, etc who are pulling in well voer 100k in retirement benefits. Thats why none of them save any money, and so many of them own toys like you describe. we used to have a neighbor that was a retired teacher, took 3 cruises a year. And, like your cop, when the next big crash happens and their retirement fund is in jeopardy, they will expect taxes to be raised on the rest of us to pay for it, even though most of the people expected to pay for it will have just had their 401k/etc wiped out. sorry serf, but i protected and served the living shit outta you, pay up...

ebworthen's picture

The banksters needed a bailout to keep their casino humming.

Therefore, the government "of the banks, by the banks, for the banks" gave and give them their gravy.

Never mind the promises made to cops, teachers, firefighters, military members - save the banks!

Then - foment discord amongst the different underlings of the populace - blame anyone but the higher ups in .gov and the banking/corporate/insurer parasites.

zhandax's picture

That works until it doesn't.  Then the ropes and pitchforks come out..  Every day a bit closer....

Edit:  I just read this and realized it is complete fantasy.  I don't even own a pitchfork  (I do have lots of rope, though).  It is folly to assume that the average phone-addled idiot in this alleged republic will have any idea the source of his misery when the ATMs quit working, let alone any clue who really caused it.

Took Red Pill's picture

I picked one up at a yard sale for this very reason! It may come in handy some day.

Kprime's picture

didn't we just borrow 10 trillion over the last 8 yrs?  what's the big deal?

VAD's picture

Yes, and whoever wrote this and allowed it to get to this point will likely pay dearly.

junction's picture

Still plenty of money to send Nail Gun Squad-type killers to bump off anyone who poses the least bit threat to the neo-Nazis who have taken over the Federal government.  Plenty of money to bail out Wall Street banksters and the likes of Bain Capital (which used the threat of bankruptcy to walk away from tens of millions in money it owed the Feds).   Stealing middle class taxpayers' pensions earned after a lifetime of work is par for the looters Obama employs, union busters like Treasury Secretary Jack Lew (who got a multi-million dollar golden parachute from NYU after he quit his job there, where he worked for six years).  Those patrolling cops in black armor carrying machine guns in financial districts are there to intimidate the real threat Obama and his accomplices perceive, citizens upset over the death spiral of their U.S. middle class status.  Welcome to the New World Order, work until you either die or are found wanting (death panels), similar to the way Nazi concentration camps dealt with untermenschen. 

RaceToTheBottom's picture

If that is not a mandate for the non payment of taxes, I don't know what could be.

dimwitted economist's picture

Honesty Sucks! just listen to the PTB and BUY FUCKING STOCK!!!!! (Bitches)

JLee2027's picture

61 Percent in Maryland!

 

Whereas more than 22 percent of total State and local gov-ernment general revenue comes from the Federal Govern-ment according to Census Bureau’s latest Annual Survey

25or6to4's picture

JLee2027
Maryland and Virginia are the pirates cove for federal goverment workers.Their economy is dependent on the thieving powers the federal government holds over the other 55 states.

JLee2027's picture

lol @ the 55 other states reference.

Vincent Vega's picture

Simon, where does the Pension Benefits Guaranty Corp (PBGC) fall in this? Does it go away, get unfunded, grandfathered?

summerof71's picture

"Whereas Social Security’s unfunded liabilities in 2014 are $10.6 trillion over 75 years and $24.9 trillion over the infinite horizon;"

 

Even Bernank knows this is bullshit. The sum of money over an infinite time period is INFINITY. JESUS.

kappal_toba_dhurr_ne_thook's picture

Yes and that is very sad for those that are planning to retire on those benefits.

kappal_toba_dhurr_ne_thook's picture

Yes and that is very sad for those that are planning to retire on those benefits.

Fukushima Fricassee's picture

California government pension recipients  be damned you say? I wish because that is justice, but I doubt it.

blindman's picture

soon they will be telling us it was all just
bullshit, didn't you know? couldn't you tell
by all the horseshit spewing from the media
and the representatives and their press morons?
.
sheesh

BurningFuld's picture

Hey this is like the Universe. The bigger it gets the faster it gets bigger.

JustObserving's picture

The elephant in the room is Medicare which this article ignores.  Total US liabilities were $222 trillion in 2013 and rising at $11 trillion a year - so about $240 trillion today:

Meanwhile, the fiscal gap separating the present value of all future projected federal expenditures—Social Security, Medicare, Medicaid, ObamaCare, defense, gassing up Air Force One, servicing existing debt, you name it—and all future federal taxes and other receipts is, based on the CBO's projections, a staggering $222 trillion.

http://www.wsj.com/articles/SB10001424127887323393804578555461959256572

http://www.bloomberg.com/news/articles/2012-08-08/blink-u-s-debt-just-gr...

Paveway IV's picture

Simple solution: austairity.

Austairity and ebola, actually.

Well, mostly ebola. But the survivors should consider fiscal austairity.

Augustus's picture

You don't have a full understading of how Medicare and Medicaid will operate in the future.  They are the real solution to all of the pension problems. Almost all retirees, except for the very very wealthy are almost forced into that medical coverage system. 

The Death Panels will just have Denial of Coverage provisions based upon age.  One of the Obamacare architects let the story slip out.  Zeke Emmanuel wrote the article describing how anyone over 75 should just not get simple things such as immunizations.  If the beginning point that they believe is palpable enough for release is to restrict immunizations for some cheap flu shots, what is next to make certain that people have earlier death?

Refuse-Resist's picture

Long Euthanasia Clinics...

 

The sheople wiill think it means "youth and asia" clinic. Come on in. We'll give you your youth and hot asian babes.

STP's picture

They just purchased a new Air Force One.  Obama probably was winging it through Seattle on another campaign fundraiser and decided to stop by Boeing and kick the tires on a 747 Dash 8.  He liked it, because they promised him a custom golf bag compartment that would get him on the links sooner.

Thirtyseven's picture

Hari Seldon predicts a longterm downtrend in western societies.

knukles's picture

Well fuck me with a spoon, Jeaves

realestateroadkill's picture

jeaves took one look and quit......

JLee2027's picture

Even Seldon missed the rise of the Mule.

Thirtyseven's picture

Well stated Lee, quite true.  Glad you got my reference.

Kprime's picture

absolutely love the foundation series

VAD's picture

Sounds like a regular fucking Nostradamus.

nmewn's picture

"This Resolution is a pretty scary dose of honesty. But again, what’s even more concerning is that it was just ignored and has objectively a zero percent chance of passing."

By "passing" you mean what?

Its a resolution not a bill.

knukles's picture

Who the fuck cares, anyhow.  Moar Fear Porn.  Quick, move to Bolivia, get a Order of Saint John passport and keep your gold safe with ISIS, Allahu Akbar

In the Land of Barney, God is Grape

Romney Wordsworth's picture

In the land of the one eyed snake, Reggie Love is king!