Quote:
Originally Posted by AllUpInner
ummm the last i checked, the US has the best credit rating of any world government.. and its other govenrments who put their money into US treasuries.. as it is considered jsut about the safest place to invest... and there is a reason for that..
there is a WHOLE bunch of sheeple ready and willing to lineup and pay their hard earned money in taxes with absolute regularity!
unwantingly - i am but one of the sad bunch who do.
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Some facts for ya. Governments lend money to other governments, - not invest it. Investing is for a marketplace. Governments also lend money not because it's the "safest place to invest" - they even give the stuff away.
The US government has been constantly borrowing money from other nations since the late sixties and using it to pay the national credit card. There has also never been a trade surplus since the late 1960's.
As at September 2004, the U.S. government has a negative net worth of over 7.7 trillion dollars. That is according to Uncle Sam's accounting and this does not include intragovernmental debts nor accrued liabilities such as any provision for pensions, social security and other commitments.
It's more than fair to say the balance sheet grossly understates the enormity of the U.S. government’s deficit net worth position.
Quote:
2004 - September 30th (Billions)
Assets:
Cash and other monetary assets 97.0
Accounts receivable, net 35.1
Loans receivable, net 220.9
Taxes receivable, net 21.3
Inventories and related property, net 261.5
Property, plant, and equipment, net 652.7
Other assets 108.8
Total assets 1,397.3
Liabilities:
Accounts payable (Note 9) 60.1
Federal debt securities held by
the public and accrued interest 4,329.4
Federal employee and veteran
benefits payable 4,062.1
Environmental and disposal liabilities 249.2
Benefits due and payable 102.9
Loan guarantee liabilities 43.1
Other liabilities 260.3
Total liabilities 9,107.1
Net Position (7,709.8)
Total liabilities and net position 1,397.3
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Meanwhile, current borrowings continue at levels where this has played a part in the low value of the dollar and in the region of $8 billion/day. Between $2-3 billion a day is being loaned by the Central Bank of China alone.
The question of "credit rating" does not even enter into the scenario. If the US was a corp, US Inc, it would be operating illegally and insolvently with a deficit exceeding $7.7 trillion dollars and the officers thrown into jail for violation of corporate laws.
Keep playing your taxes - far higher rates are needed before solvency or break-even is in sight
