PART TWO
The promises made for future pensions amount to $21trillion, a figure that looms large over the federal budget. Moreover, the accrued compounded interest on US treasuries has reached a daunting $20 trillion. In addition to these liabilities, there are 13 unfunded entitlementstotaling $50 trillion, placing an enormous burden on the economy. The future costs of Medicare and Medicaid alone are projected at $1.6 trillion per year, while Social Security's future costs are estimated at $1.5 trillion annually.
The source www.usdebtclock.orgof these daunting financial realities demonstrate our Great American Enterprise is insolvent, staggering towards bankruptcy. Will this be solved by our new Department of Efficiency DOGE or a Department of Effective AccountableGovernment also DOGE. To Save the Gret American Enterprise not the economy. Using GAAP is a generally accepted accrual accounting system versus GAS is cashbasis governmental budgetary accounting system.
It’s realism versus Communism that hides the enormous human costs of war and debt.
Federal, State and Local debt $103 trillion
Federal, State and Local spending $12 trillion per year
Federal, State and Local debt held by foreign countries $8.7trillion
Federal, State and Local tax revenues $9.6 trillion per year
Federal, State and Local deficits $2.4 trillion per year
USA GDP $27 trillion per year
Debt to GDP 123% per year
The source, www.usdebtclock.org, starkly illustrates thatthe American financial landscape is fraught with peril, seemingly teetering on the edge of insolvency and potential bankruptcy. The question arises whether salvation lies in the hands of the newly proposed Department of Efficiency(DOGE) or perhaps a more ambitiously named Department of Government Effective Accountable Governance (also DOGE). The aim is to rescue the Great AmericanEnterprise, not merely the economy.
This situation pits the principles of GAAP (GenerallyAccepted Accounting Principles) against GAS (Governmental Accounting Standards), emphasizing the critical difference between accrual accounting and cash basis governmental budgetary accounting. This debate underscores the starkrealism versus fatalism dichotomy, revealing the hidden, massive human costs of war and debt.
Ironically, China has an exploratory committee tasked withconverting their financial system to GAAP (Generally Accepted Accounting Principles) rather than relying on budgets. This shift aims to better manage their GDP and debt, funding initiatives such as the Belt and Road and Maritime Silk Road projects. These efforts strategically exploit America's fiscal and political vulnerabilities, potentially positioning Communism to supplant USAhegemony in global trade and influence.
Key financial metrics include:
- Federal, State, and Local debt: $103 trillion
- Federal, State, and Local spending: $12 trillion per year
- Federal, State, and Local debt held by foreign countries:$8.7 trillion
- Federal, State, and Local tax revenues: $9.6 trillion peryear
- Federal, State, and Local deficits: $2.4 trillion per year
- USA GDP: $27 trillion per year
- Debt to GDP ratio: 123%
These figures paint a sobering picture, highlighting theimmense financial challenges facing the nation.
