The US Government Lost Nearly $1 Trillion In FY2017... Again!

Tyler Durden's picture

Authored by Simon Black via,

There was a time, centuries ago, that France was the dominant superpower in the world.

They had it all. Overseas colonies. An enormous military. Social welfare programs like public hospitals and beautiful monuments.

Most of it was financed by debt.

France, like most superpowers before (and after), felt entitled to overspend as much as they wanted.

And their debts started to grow. And grow.

By the eve of the French revolution in 1788, the national debt of France was so large that the government had to spend 50% of tax revenue just to pay interest to its lenders.

Yet despite being in such dire financial straits the French government was still unable to cut spending.

All of France’s generous social welfare programs, plus its expansive military, were all considered untouchable.

So the spending continued. In 1788, in fact, the French government overspent its tax revenue by 20%, increasing the debt even more.

Unsurprisingly revolution came the very next year.

There are presently a handful of countries in the world today in similar financial condition– places like Greece, which are so bankrupt they cannot even afford to pay for basic public services.

But the country that has the most unsustainable public finances, by far, is the United States.

The US government’s ‘Fiscal Year’ runs from October 1st through September 30th. So FY2017 just ended last Friday.

During that period, according to the Department of Treasury’s financial statements, the US government took in $2.95 trillion in federal tax deposits.

And on top of that, the government generated additional revenue through fees and ‘investments’, including $62 billion in interest received on student loans, and $16 billion from Department of Justice programs like Civil Asset Forfeiture (where they simply steal property from private citizens).

So in total, government revenue exceeded $3 trillion.

That sounds like an enormous amount of money. And it is. That’s more than the combined GDPs of the poorest 130 countries in the world.

But the US government managed to spend WAY more than that– the budget for the last fiscal year was $4.1 trillion.

So to make up the shortfall they added $671 billion to the national debt– and this number would have been even larger had it not been for the debt ceiling fiasco.

Plus they whittled down their cash balance by $194 billion.

So in total, the federal government’s cash deficit was $865 billion for the last fiscal year.

And, again, that number would have been even worse if not for the debt ceiling that legally froze the national debt in place.

That’s astounding.

Just like in 2016 (where the cash deficit was $1 trillion), this past fiscal year saw no major recession. No full-scale war. No financial crisis or bank bailout.

It was just another year… business as usual.

And yet they still managed to overspend by nearly $1 trillion, with costs exceeding revenue by more than 20% (just like the French in 1788).

What’s going to happen to these numbers when there actually is a major war to fund? Or major recession? Banking crisis?

More importantly, they’ve been overspending like this for decades without any regard for the long-term consequences.

That’s why the national debt exceeds $20 trillion today. And including its pension shortfalls, the government estimates its total ‘net worth’ to be NEGATIVE $65 trillion.

Thousands of people are joining the ranks of Social Security and Medicare recipients each day, pushing up the costs of those programs even more.

Yet their Boards of Trustees warn that both Social Security and Medicare are quickly running out of money, raising the specter of a major bailout.

Plus there’s trillions of dollars more in needed spending to maintain the nation’s infrastructure. The list of long-term expenses goes on and on.

The obvious truth is that none of this is sustainable.

From the Roman Empire to the French in 1788, history tells us that the world’s dominant superpower almost invariably spends itself into decline, ignoring the consequences along the way.

It would be foolish to presume that this time will end up any different… especially given that there’s zero sign of any changes to the trajectory.

Congress has already put forward a new spending bill for this Fiscal Year– another 4+ trillion, not including any emergency spending that might arise (like hurricane relief, for example).

So we’re already looking at another nearly $1 trillion loss for the coming fiscal year, especially given that there’s almost no growth to tax revenue.

Don’t take this the wrong way– the sky is definitely not falling. The world isn’t coming to an end. And the US isn’t going to descend into financial chaos tomorrow morning.

But at a certain point, a rational person has to take note of such obvious and overwhelming data, and take some basic steps to reduce your exposure to the consequences.

For example, if your country is objectively insolvent, it probably doesn’t make sense to keep 100% of your assets and savings within its jurisdiction…

… especially if your government has a proud history of Civil Asset Forfeiture, AND you happen to be living in the most litigious society that has ever existed in the history of the world.

It’s easy (and incredibly cost effective) to move a portion of your savings to a safe, stable jurisdiction overseas that’s out of harm’s way.

Or to hold physical gold and silver in a safety deposit box overseas. Or even cryptocurrency as an alternative.

This isn’t some crazy idea for tin-foil hat-wearing doomsayers.

Rational, reasonable, normal have a Plan B.

And in light of the circumstances and all the data, it would be truly bizarre to NOT have one.

Do you have a Plan B?

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JDFX's picture

Everyone knows it's just fantasy digits typed up on a keyboard, yes ?


We call this ' money of account '. It's intangible .  It's unlimited .


OK, we'll all play along then...... ????


Hubbs's picture

Are you talking about cryptos?

historian40's picture

Prescisely.  Same o same o.

yogibear's picture

Yeah, create trillions on a $3,000 server.

Hand the virtual money to the Chinese  for billions in real goods. Amazing.

Also use these imaginary dollars to buy oil. 

All debt.

Debt Slave's picture

The joke is on them until they realize that they have been screwed. Then it could be war.

Déjà view's picture

"Joke is"...$1 Tn all over again...déjà vu...has Feral Gov't checked for other $19 Tn at Lost & Found...

1788-1981...Feral Gov't lost a total of $1 Tn...

Benjamin123's picture

Its not the server, its the army. The army collects taxes within the US and tribute abroad. The US army is the best in the world, it loses every war that doesnt matter and wins the ones that do.

Jack McGriff's picture

Fantasy to everyone else except the fucking filthy Talmudic Jewish supremacists who are collecing all that interest on the debt every year!  Stealing our country's wealth right in front of our very eyes and no one does fuckall about it!  

VWAndy's picture

 Im guessing it went into stupid or corruption.

Hubbs's picture

I just hope they will have enough to build a few dozen guillotines.

And don't forget the baskets.

historian40's picture

Set the guillotines up along a levee bordering a Lousiana swamp, the alligators will take care of the rest, and it'll be poetic justice.

ExtraordinaryIrrelevance's picture

We should re-use the baskets. What's a little blood?

Obsidian Samctum's picture

That guillotine is for the plebs.

Pausebreak's picture

Make sure the head is turned around so the executed can see their headless body.

yogibear's picture

The US had it all as well....

Now they print it and BS it all.

Stan Smith's picture

"A trillion here, a trillion there.   At some point your starting to talk about real money."

historian40's picture

Funding empire is expensive, especially when bribing people to murder for you.

Ask Ollie North where the money went...

rejected's picture

Ollie North,,, I forgot about him,,, wonder what he's up to....

Father ¢hristmas's picture

Which is why we support the ethno-quasireligious hub of internat'l bankers and brokers across the galaxy: Israel.

The Old Country is overrun by peace-lovers, and Russia, pffff hahahaha.

So, there are moar Tribe members in NYC than in Bible Land.  Although the Tribe would like to repatriate their members back to the land of milk and honey, we have ways of hedging against that shit lol

Party on, Garth.

Swamp Yankee's picture

Can I use this excuse with the IRS?

ali-ali-al-qomfri's picture

Noticed a very large canoe the other day, couldn't make out the numbers, it was

unattended and overturned.

The waterline marks were high, she musta been sittin' low in the water, heavy.


I'm going to get my u/w metal detector and scuba tank.

Obsidian Samctum's picture

They didnt lose shit. The world is coming to an end and they have their bunker city and moon base.

wholy1's picture

LMAO - "Lost"?!  Actually:  GRIFTED/STOLEN

MrBoompi's picture debt is required in order to keep the economy from collapsing.  If the public doesn't take out the loans, the government will.  They can cut spending all they want.  Hell they can even run a "balanced budget", but the need for debt will still remain.  And come hell or high water they will create another $1 trillion+ out of thin air.  Nobody alive and in charge will allow the system, as it exists today, to collapse.

Debt Slave's picture

Only when it runs out of debt loaded suckers to take on more debt.

Still, there is no doubt that this can not go on forever. Not with the current cultural paradigm shift taking place. Think Mexico without foreign assistance.

rejected's picture

1 trillion ain't shit. Try  21 trillion misplaced, lost or unaccounted for. The parasites have pulled out all the stops.

Catherine Austin Fitts

Probably where Simon sez got his info....


historian40's picture

"1 trillion ain't shit."  That's what they want to mold into the public's mind.  Make it so outrageous that any number is meaningless.  If it has no foundation, then there is no real way to find out how high it is.  Faith-based currency, "In God We Trust", aka Mammon is like a drug.

Arrow4Truth's picture

Ah, but anything is possible in the land of Oz.

SeuMadruga's picture

You mean gold ? At least Oz is the Au contract here in Braz-ill...  :-)

ps: makes me wonder if those crooked brokers were joke-hinting that the suckers, I mean, "investors"'d have to go for a journey with a scarecrow, a tin foil hat man and a lion to redeem their bullion...

Debt Slave's picture

I remember Department of Defense in 2001. Oops lost a trillion, and then came 911 and a trillion was flushed down the memory hole in the blink of an eye. Never to be heard of again. Imagine that.

louie1's picture

The oligarchs think they can ride the crash to the bottom and still retain yhr reins of power. Sort of like standing on the roof of WTC7 when they decided to blow it.

They figure they have full spectrum spying on the people, a militarised police force, a rigged stock market, full  military control of cities (see Jade Helm practice runs), Israeli citizens havinv the balance of power in congress, full MSM ownership and control, hollywood control, Federal Reserve control, CIA, NSA,TSA, Homeland Security control, Wall Street contfol, education the courts, and the Patriot Act.There are 26 government departments that can shoot and kill you.

The ONLY thing that will save you from a lifetime of financial and physical slavery is the Second Amendment. Was Las Vegas a false flag? Wake up.

historian40's picture

The 2nd Amendment won't save you.  The will to defend yourself and your family is what's important.  You can have a thousand words that say you have a right, but if you arent' willing to defend it, the zionists don't care.

I wonder how many of those marched from their homes after the "Boston bombing" also said 'from my cold dead hands" at least once in their life.

SeuMadruga's picture

Yeah, sadly these days people only usually pray the 2nd "Amen" !

louie1's picture

Oh I forgot. The people are so dumbed down and frightened they will vote for slavery.

Mr T's picture

Finally some good news! 

Fiscal 2016.  -1 Trillion 

Fiscal 2017   -.865 trillion Whoooo!

It doesn't get any better then this.

Phhttttt! Open a Bud Merica!  This ones for you!'

Debt Slave's picture

You know the government can’t stop spending. If they did, there would be no ‘economic growth’.

I mean come on. We adults here at ZH know that in a debt based monetary system like ours, all ‘growth’ comes from debt, right?

It’s very simple. Every nickel in circulation is someone else’s obligation. Typically the government. Without new debt, there is no new money. Without new money, there is no sustained ‘economic growth’.

The problem is the intrest on the debt. Soon the United States will struggle to pay it. Especially as the population grows darker and production falls. Historic and present examples are abundant. Usury is the tool whereby all nations are destroyed.

Come on America. This is first grade shit.

AnimalSpirits's picture

The answer is sovereign money, but people are either asleep or haven't suffered enough yet to demand it. It is first grade shit - most people don't question usury...amazing how easily we give our power away. 

Boris Badenov's picture

Why is FEMA sending out checks to people who lost power in Hurricane Irma in Florida? $900 if you lost power for 5 days or more WTF??

Debt Slave's picture

Wow yeah baby that would pay my bill for the next 5 months. Hooray for ‘economic growth’ “incentives”.

Debt based capitalism. What a blast.

Déjà view's picture

"Why"...Florida is not good at TEXAS HOLD 'EM...

Tejas $10 Bn RAINY DAY FUND©®™…

The governor said if the state needs to tap the Rainy Day Fund for Harvey recovery, it won't be until the next legislative session in 2019. 

On Tuesday evening, Abbott spokesman John Wittman said Florida is getting a 75/25 split with FEMA after Irma — meaning the federal government is picking up 75 percent of the recovery tab, while 25 percent is up to local governments. By comparison, Abbott negotiated a 90/10 split following Harvey, Wittman said.

Pausebreak's picture

Over 3 million customers.  That comes to a bill of $3 billion!  

Emergency Ward's picture

It's to replace all the USDA Prime steaks that spoiled in the freezers.

Toshie's picture

Move to newzealand or Australia for those who still can. Canada is not bad either. :)

peippe's picture

whatever, it's only 1 t, we can print more ts.

Pernicious Gold Phallusy's picture

I don't get it. There are countries with much higher debt to GDP than us. Why worry?

digitalrevolution's picture

At this point it's fine, just lose some of that trillion into my checking account. Lots of zeros please

ElTerco's picture

They need a five year wage freeze for all government contractors and federal employees to squeeze the sh*t out of the system. Instead, they reduce tax rates for the wealthy and pile on the debt. Brilliant.