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business newsUS Government: On Its Way to Bankruptcy
America's government spends what it doesn't have, makes promises it can't keep, and sticks others with the bill.
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Editor's Note: On January 15, Michael Pollaro wrote the first of a four-part series entitled US Government, On Its Way to Bankruptcy. The series, with an intro and links to all four parts, is reproduced below.
The US government is quite literally out of control.
I’m not talking about a government that shows an almost total disregard for the US Constitution. I’m not talking about elitist politicians in Congress who think they know what’s best for you, who think it’s their job to take care of you from cradle to grave, whether you like it or not. I’m not even talking about an administration whose policies sometimes appear to have more in common with the command and control societies of Benito Mussolini or Karl Marx than they do with the freedom-loving societies of Thomas Jefferson and James Madison.
No, what I’m talking about is a government whose fiscal finances are a mess. I’m talking about a government that, because of these policies, thinks nothing of spending what it doesn't have, of committing to obligations that it cannot possibly keep, and then trying to stick someone else with the bill.
I’m talking about a government that’s on its way to national bankruptcy.
In the following four posts, through the story of Peter and Paul, I've attempted to lay bare the facts of a government whose obligations are so big and growing so fast, that unless millions of Americans are about to be told that they're not getting what they were promised because it simply costs too much, or millions of US government debt holders aren't getting their money back because America can’t afford it, there will come a time when the only way out for the US government, to make good on its promises, will be via the wholesale use of the policy of inflation. In other words, by devaluing those obligations by printing money.
National bankruptcy through the Federal Reserve’s printing press.
- Part 2. Peter’s Bill, Going From Bad to Worse to No Can Pay
- Part 3. Peter and Paul Have Some Friends, For Now
- Part 4. Peter and Paul Are About to Get Fleeced
This, however, isn't the end of my tale.
Today, for Minyanville readers, I offer up my supporting tables and charts, so you can track the US government’s journey towards bankruptcy, right along with me:
- US Government Financials
- Foreign Investment Flows into Treasuries/Agencies
- Federal Reserve Credit
- Austrian Money Supply
In the future, expect monthly updates to these data series, running commentary, and analysis too, here on Minyanville.
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