What a surprise– it turns out they lied about the deficit last year | Sovereign Man

clickie!!

… 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 -$16.9 trillion [poster note: yes negative folks. GE.]

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.

via Sovereign Man and H/T to ZeroHedge where we saw it first

8 thoughts on “What a surprise– it turns out they lied about the deficit last year | Sovereign Man

      • Brittius 03/20/2014 / 1:26 PM

        You’re welcome.
        I enjoy seeing the trolls do the slow burn. The more I reblog, the more it upsets them.

        Like

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