CBO Report: Republicans Accelerate The US’s Path Toward Bankruptcy

It doesn’t take a math whiz to know that the nation is headed toward a complete bankruptcy. But now, a new CBO (Congressional Budget Office) report released is ripping the mask off of the Republicans in Congress and showing us who they really are: Democrats.

After the last horrifying budget deal which saw trillion dollar deficits, Republicans can no longer be called the party of being fiscally conservative.  It appears that the Deep State will get their way regardless of who is in power, and there’s nothing the rest of us can do about it.

Last year the Congressional Budget Office warned that Uncle Sam was racing toward fiscal insolvency. Although the CBO expected the deficit to fall to “only” $487 billion this year, it would start growing again next year. By 2022 the flood of red ink would near $1 trillion. By 2027 it would reach $1.4 trillion. The cumulative deficit over the following decade would be more than $9.4 trillion and 4 percent of GDP, as outlays grew ever higher. Expenditures currently are about 21 percent of GDP, above the 50-year average of 20.3 percent. By 2027, CBO projected spending would hit 23.4 percent of GDP. –National Review

The corporate government is bankrupt, and it’s only getting worse in spite of Republican promises to “fix” it.  The CBO’s report on the federal government’s finances over the next decade is the stuff of nightmares.  And with Republicans holding all three branches of government, there’s little they can do to shake the truth: they are all the same.

As the agency politely put it, “projected deficits over the 2018-2027 period have increased markedly since June 2017.” The rise was almost entirely the result of the spending and tax bills approved last year: Uncle Sam will be spending a lot more while taking in a good bit less in the future. That is, the Republican-controlled executive and legislative branches went wild and abandoned even the pretense of fiscal responsibility. It wasn’t the first time, of course: In the early 2000s, President George W. Bush and the Republican Congress spent money faster than even Lyndon Johnson and his Democratic congressional majority. The latest round of GOP budget-busting provides a dramatic reminder that the spending problem in America is bipartisan. -National Review

The US continues to move rapidly down the path of insolvency.  And the numbers continue to look worse when peering down that path. According to the new CBO analysis, the deficit this year will exceed $800 billion, well above last year’s prediction. The deficit will be just shy of $1 trillion next year, continue to shoot upward to $1.3 trillion in 2027, and reach an astounding $1.5 trillion in 2028, higher than even during the financial crisis, which generated four years of trillion-plus-dollar deficits. Total red ink over the next decade will be around $12.4 trillion. As a percentage of GDP, the deficit will run 4.9 percent. In 2027 the total national debt held by the public will be $27 trillion and 94.5 percent of GDP, the highest it’s been since 1946 when the U.S. was paying down its World War II debt.

Future deficit gaps will be accelerated by “mandatory spending” on entitlements, such as social security. According to the CBO, the “increase reflects significant growth— mainly because the aging of the population and rising health care costs per beneficiary are projected to increase spending for Social Security and Medicare, among other programs. It also reflects significant growth in interest costs, which are projected to grow more quickly than any other major component of the budget.” The agency figures that interest payments will rise three times in total and two times as a percentage of GDP by 2028. Revenues also will increase significantly, but not as fast as outlays.

There is no real silver lining.  Spending will not decrease, not enough to keep the government from its eventual implosion and collapse under its own weight anyway.  The only thing we can do is to pay off as much debt as possible and prepare for an economic collapse of the government’s doing.

Prepping and survivalism can be a daunting task.  But if you’re interested in getting started, not only is now a great time to begin, but a book called The Prepper’s Blueprint written by Tess Pennington can be a helpful ally in giving you a launch point.

The Socialist Crisis In Venezuela Is About To KILL The Oil Market

A new report is warning that the socialist engineered economic crisis in Venezuela will completely kill the global oil market. Plunging oil production in Venezuela is causing a national economic and humanitarian crisis that could tip the global oil market “decisively into deficit,” according to the report.

Published Thursday, the report laid out concerns that Venezuela’s socialist regime could impact all of us globally. Although critics claim the experimentation with Venezuelan President Nicolas Maduro’s oil-backed cryptocurrency, the petro, is doomed to fail epically, Maduro claims it will help deliver “everything our country needs.”

Maduro claimed Wednesday the pre-sale of the digital coin had been a huge success, raising $5 billion from 83,000 investors in 127 countries. However, there is no evidence that he spoke in fact.  A report from the Brookings thinktank harshly criticized the petro project, saying it would likely fail and in doing so would harm the legitimate use of cryptocurrencies in general, contributing “to the idea that cryptocurrencies facilitate fraud.”

What makes matters worse, is at the same time, Maduro appears to be ignoring warning signs about the socialist regime’s oil production. “Within the OPEC countries, the biggest risk factor is, and will likely remain Venezuela,” the International Energy Agency said in its closely-watched monthly report.

Along with the fact that the population is being starved and impoverished by government policies which spurred hyperinflation, Oil production in Venezuela has plummeted in the last two years, with the U.S. Energy Information Administration claiming production is 300,000 barrels a day less than in 2017. OPEC cut back oil production in recent years to boost the price of oil after 2014 collapse, but now the unplanned drop in Venezuela’s oil production could cause a shortage of oil.

“Without any compensatory change from other producers it is possible that the Latin American country could be the final element that tips the market decisively into deficit,” the report said.

Despite the worsening political crisis, Maduro has continued to brag about the petro, which he believes will help the country avoid crippling international sanctions. He told the members of the United Socialist Party of Venezuela last week that the money raised from the sale of the petro would form part of a wider “economic solution” and would strengthen the country’s “monetary sovereignty, to make financial transactions and overcome the financial blockade.”

The US Government Lost More Money Last Year Than Entire Australian Economy Produced

The annual financial report showed that the United States government lost over $1 trillion last year, which is more money than the entire Australian economy produces.

That huge sum of money constitutes the size of the entire Australian economy; it amounts to a loss of more than $2.2 million per minute. Despite that, the report noted that during FY 2017, the US economy continued to grow and the unemployment rate declined. In his introductory letter, the Treasury Secretary said that “the country enjoyed a pick-up in [economic] growth in 2017. Unemployment is at its lowest level since February 2001, consumer and business confidence are at two-decade highs, and inflation is low and stable.”

Nothing about this debt-based economy we are forced to live under is “stable.”

According to RT,  the government’s operation costs soared by 10%. “The Government’s “bottom line” net operating cost increased $105.0 billion (10.0 percent) during [fiscal year (FY)] 2017 to $1.2 trillion,” said the financial report.

US Federal Reserve rings alarm about America’s soaring debt https://t.co/X8bSTBnCMv

— RT (@RT_com) February 22, 2018

The report also showed the government’s net worth decreased by about 6 percent year-on-year to a negative $20.4 trillion, meaning it has far more liabilities than it has assets. According to the calculations on long-term liabilities from Social Security and Medicare, the two largest and most relied on pension and healthcare programs in the United States are insolvent by nearly $50 trillion.  

The US Federal Reserve also said this month national debt could reach $30 trillion in just 10 years and that it should be a reason for concern. “I believe the Federal Reserve should be gradually and patiently raising the federal funds rate during 2018,” Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday. “History suggests that if the Fed waits too long to remove accommodation at this stage in the economic cycle, excesses and imbalances begin to build, and the Fed ultimately has to play catch-up.”

The US has some major problems with the economy that no government can fix because they created the problems, to begin with.  If you haven’t yet started to prepare for an economic crash, then now would be a good time.