As you can see from the content on our Home Page, our financial situation is beyond dire. In fact, we are in deep, deep, trouble. We owe more money to future generations than the entire world produces in almost two years (source: CIA). This is incredible. This money is promised in Social Security and Medicare payments.
We Have Negative Equity
When your liabilities exceed you assets, you have a negative net worth. So it is with government finances. It owes, may more than it owns.
We Are Cash Flow Negative
The government debt is staggering. At over $11 trillion, it is almost equal to GDP. As scary as this is that we are borrowing $1 trillion/year to finance government spending! We spend more than we earn.
Our Government is Technically Insolvent
When you spend more than you earn and you owe more than you own, the word to describe the situation is insolvent. Another way to look at it is that we are bankrupt. This is not technically correct, because bankruptcy is a legal proceeding following insolvency.
We’re Borrowing from Foreigners
The only thing keeping our government functioning is that foreigners are still willing to lend it money. Once they realize the true state of the United States government finances they will stop. When they do, we will be in big trouble. This has started in the United Kingdom and will happen here unless we immediately change course. When a country starts buying up its own debt by printing money, watch out: Hyperinflation could be coming.