This headline is not one you are going to find on the front page of your financial magazine, The Wall Street Journal, or the even the New York Times. But it is true! Unfortunately it is the obvious sign of the diabolical financial decline of U.S. Government public finances.
The truth that the increase in U.S. Federal government money burning is growing at three times the speed of American economic growth is not a mere statistic. It is a tragedy from which no country could likely ever recover.
Look at what the Congressional Budget Office recently reported in its official declaration of the sorry state of American government public finances. The United States’ public debt has already reached $19 trillion and is rising.
In addition to this, the CBO looks for at least an additional $10 trillion in debt for the near future. It also expects that the budget deficit for the United States will only get worse, not better, each and every year going forward.
Facts that support the Congressional Budget Office’s grim predictions are all around you. Military retirement costs increased 8.7% last year alone. The spending on Medicare continues to grow astronomically, up over 10% in just the last year. But Government employee benefit programs took the top spot. (Or is it bottom spot?). Their expenditure ballooned by 17%.
Rolled together the total mandatory government budget spending increased a concerning 6.6% for the year. This adds up to three times more than the growth in American GDP!
Not only is the U.S. Government flat broke by its own admission, but it is continuing to spend more and more with each budget. But the worst part is the growth in spending is massively outpacing the country’s economic growth.
Another financial report just came out on Social Security. The program is quickly running out of funds and will be insolvent within a decade. The U.S. Treasury releases annual financial statements that show it will not be broke ten years from now, but it is in fact already there today.
You don’t need a Ph.D. to understand how large a problem this is for the country and all 300 million citizens plus who live in it. Despite facts that the statistics office for the country has admitted to the country’s looming bankruptcy, the Federal government continues to spend as if nothing is wrong and a “business as usual” mantra.
This is no laughing matter. The terminal financial demise of the greatest superpower in all history of the world will turn out to be the greatest disaster of our generation, will take down the world’s financial system with it.
The so called financial safe havens of the world will not shelter anyone or their paper assets from this impending implosion. Negative yields on foreign debt will not save you. Government debt across the planet will plunge with the American public finances. The only place to safeguard your money will be in gold and precious metals.
Gold is still cheap compared to when the Government finally starts to melt down.
So now is the time to diversify a portion of your family’s assets into the only true safe haven. No one can over spend or bankrupt the physical gold bullion. It has endured economic collapses numerous times for five thousand years now. It will ensure that your savings and purchasing power survive the greatest collapse to come.