How much did the true debt obligations of the US government increase in 2013?
*Barron's, by Joseph H. Marren, January 6, 2014
”The nation’s budget deficit and debt are exponentially higher than what our politicians say they are. None of the headline figures used as the basis of public discourse have any relevance to the true state of U.S. finances.
The government’s financial reporting is misleading because our political leaders have subverted the democratic process to advance their personal interests. They have spent enormous sums of taxed and borrowed money to endear themselves to the electorate, but they do not want to be held accountable for the full extent of this spending. Hence, the legislative and executive branches collude to underreport expenditures.
In reality, the federal government’s existing legal obligations exceed $90 trillion, which is far above the carefully defined debt-ceiling limit of $16.7 trillion and is almost six times the size of the gross domestic product. The reported budget deficit for fiscal 2012 was $1.1 trillion, when a more realistic accounting would show a $5.8 trillion deficit.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.