THE DEEP STATE SWAMP REVISITEDFiling for Chapter 11 bankruptcy of the USA
Therefore, the current Federal deficit, as is the cooking of the books for every governmental unit, is far short of the real deficit . .
. $158 trillion actual versus $28 trillion that is reported. While the annual excess of accrued expenses over earned, revenues is a minus $4.5 trillion for 2020 though reported as $13.2 trillion. The trade deficit is $916 billion (China $311 billion) per year. $6 trillion unfunded pension liability. TotalState, local and Federal debt $82.6 trillion. Total debt held by foreign countries $7.1 trillion. Total interest on debt perannum $3.8 trillion. Total personal debt $21 trillion, mortgage debt $17.1 trillion, student loan debt $1.7 trillion, credit card debt
$1.1 trillion putting total national debt on the accrual basis as $158.4 trillion with $157.3 trillion in national assets or a negative net worth of $1.1 trillion. Total Federal taxrevenue of $3.5 trillion, State tax revenue $2.1 trillion, local tax revenue $1.5 trillion or a total national tax revenueof $7.1 trillion versus current expenses of $10.1 trillion or an annual deficit of $3 trillion plus 2020 Pandemic stimulus of $5.8 trillion on GDP of $21.6 trillion. For the first since world war two current Federal debt exceeds GDP by 129.7%.
The swamp exists at every State level with the Capitol as the top of the ant hill of money-tics. Currently the collective debt and accumulated deficits of the states is $10 trillion using GAAP and growing. For example: Each State has its own organization chart of locally staffed voters beholdingto the current party in power.
The State of Iowa, a Red State, has a patronage system of over 2,000 committees and sub committees … all appointed by the party in power. Most of the committees have a budget and are paid for perfunctory activities at the local level that is nothing more than a system of political funding raising. The State of Illinois, a Blue State, has the same system of patronage but bigger. An effective third party would turn these patronage committees and subcommittees into fund raisers for community development and restoration of inner cities and under privilege small town’s infrastructure projects so it is decentralized action groups contracting the employment of small to medium enterprises to keep America fit and healthy.Take it out of the hidden government for reelection of the same leaders and two parties and use it to save American Enterprise and restore the work ethic. As proven with therecent Biden 2021 stimulus payment of unemployment benefits that were more than salary levels, workers stayed home and there were 8 million open jobs waitingfor them to return to the work force. This proves the adage that government does not create jobs it kills them when it gives out more than the recipient is making. Then Big Brother taketh away when all else fails.
This being the true situation demands what is called a quasi-reorganization to avoid bankruptcy. Under Chapter 11 (Chapter 10 for government entities) bankruptcy law individuals, corporations and other entities are allowed to reorganize their finances so they can avoid dissolution. The court appoints a trustee who directs the entityto propose a plan that will pay down its secured debt first then use whatever is left to pay off the unsecured creditors and investors. It also requires in the plan an infusionof new capital for allowing the entity the resourcesand time to go forward with its business in a responsible manner. This perpetuates the entity for producing futureprofits and putting it on a sound financial footing.
In the book it is proposed that Government at all levels is insolvent due to using cash basis accounting methods and accumulating deficits they can never liquidate, even withtax increases, without quasi- reorganization. . . meaning more equity capital and less current debt. (To prove my point,take a look at San Bernardino and Detroit). This capitalcan be generated by increasing taxes, cutting the size of its payroll and overhead down to the breakeven pointand finding investors that will put capital into the entityto allow it time to reduce its costs and generate a true surplus. Increasing taxes is perpetuating the problemsince it takes capital out of the American Enterprise for nonrevenue producing overhead costs.
