“The United States government is in debt to the tune of nearly $17 trillion. What’s more, Uncle Sam has to borrow money just to pay interest on the money they’ve already borrowed… and they’re still posting trillion-dollar annual deficits.
The only reason that the US government is still in business is because the Federal Reserve has been buying the vast majority of newly issued US Treasury bonds… in some cases as much as 90%.
The problem with this method, aside from being a completely fraudulent system, is that the Federal Reserve is quickly reaching the point of insolvency itself.
As we’ve explored in recent letters, the Fed’s capital ratio (a significant measure of it’s financial health) is at a laughably small 1.53%. And as the Fed continues to expand its balance sheet buying even more of the Treasury’s debt, its capital ratio gets smaller and smaller.
The government is soon going to be in a position to seek ‘other’ sources of funding, just as we saw in Cyprus earlier this year.”
Via Sovereign Man
“Federal employees were paid more than $155 million of taxpayer dollars in 2011 for spending more than 3.4 million hours of “official time” on labor union activities that fell outside their assigned government duties, according to a survey by the Office of Personnel Management (OPM).
“Voluntary membership in Federal sector unions results in considerable reliance by unions on the volunteer work of bargaining unit employees, rather than paid union business agents, to represent the union in representational matters such as collective bargaining and grievances,” the OPM stated.
But these “volunteers” were doing their union work on government time.”
Via CNS News
Detroit Looks to Health Law to Ease Costs
“As Detroit enters the federal bankruptcy process, the city is proposing a controversial plan for paring some of the $5.7 billion it owes in retiree health costs: pushing many of those too young to qualify for Medicare out of city-run coverage and into the new insurance markets that will soon be operating under the Obama health care law.
Officials say the plan would be part of a broader effort to save Detroit tens of millions of dollars in health costs each year, a major element in a restructuring package that must be approved by a bankruptcy judge. It is being watched closely by municipal leaders around the nation, many of whom complain of mounting, unsustainable prices for the health care promised to retired city workers.
Similar proposals that could shift public sector retirees into the new insurance markets, called exchanges, are already being planned or contemplated in places like Chicago; Sheboygan County, Wis.; and Stockton, Calif. While large employers that eliminate health benefits for full-time workers can be penalized under the health care law, retirees are a different matter. “
Via NY Times
“In an age of “belt tightening” and “budget cuts”, you would think that government officials would be trying to spend our money wisely. Unfortunately, when it comes time to cut spending our politicians tend to do everything that they can to protect their own interests and their own pet projects, but they don’t seem to mind implementing cuts that deeply hurt military families, the poor and the elderly. The facts that you are about to read will likely upset you very much. The federal government and our state governments are wasting money in some of the most ridiculous ways imaginable. Meanwhile, we are being told that we don’t have any money for a lot of really important things. Our hard-earned tax dollars are being horribly mismanaged, and the American people deserve to hear the truth about this gross negligence.”
Warning to all police, firefighters, schoolteachers: Most government pensions to be confiscated within a decade
“Last week, Detroit declared bankruptcy, becoming the largest city in U.S. history to take such drastic action in the face of financial insolvency. A declaration of bankruptcy isn’t what most people think it is, though: it’s not just a statement of “we’re broke!” It’s actually a way for the city to clear its slate of all financial obligations and not pay the retirees it owes.
What are the largest financial obligations the city facing? Pensions. $3.5 billion worth of pensions, to be exact.
Yes, Detroit owes former government employees — teachers, firefighters, cops and more — a whopping $3.5 billion in current and future payments. Except Detroit doesn’t have $3.5 billion to pay the pensions. The city is in a state of economic collapse. Remember, the U.S. government used billions in taxpayer money to help General Motors move its manufacturing offshore to countries like China. As a result of economically-insane actions and criminal mismanagement, a city that used to be the hub of industrial output in America has become a ghost town of abandoned buildings, crumbling infrastructure and financial destitution.
But even as all this was becoming apparent, the government workers there continued to collect fat paychecks and pensions, all based on the promise that endless population growth would out-pace the rise in pension obligations. Many pensioners are owed over $100,000 a year from the government, and this is true across California, Illinois and many other states as well.”
Via Natural News
“Rep. Charles Rangel (D-N.Y.) says, “we shouldn’t even be charging young people to go to school.”
Rangel made the comments while discussing the interest increase on certain federal student loans in a video on a political social media website.
“In the long run, it would seem to me, that we shouldn’t even be charging our young people to go to school because ultimately our country and our treasury is the beneficiary,” Rangel says.”
Via CNS News
“Did you actually believe that they were not going to use the precedent that they set in Cyprus? On Thursday, EU finance ministers agreed to a shocking new plan that will make every bank account in Europe vulnerable to Cyprus-style bail-ins. In other words, the wealth confiscation that we just witnessed in Cyprus will now be used as a template for future bank failures all over Europe. That means that if you have a bank account in Europe, you could wake up some morning and every penny in that account over 100,000 euros could be gone. That is exactly what happened in Cyprus, and now EU officials plan to do the same thing all over Europe. For quite a while EU officials insisted that Cyprus was a “special case”, but now we see that was a lie. International outrage over what happened in Cyprus has died down, and now they are pushing forward with what they probably had planned all along. But why have they chosen this specific moment to implement such a plan? Are they anticipating that we will see a wave of bank failures soon? Do they know something that they aren’t telling us?”
“During a speech earlier this month Rep. Gwen Moore (D-Wis.) said that GOP House leaders are pushing public policy “demanding that you work else your children can’t eat.”
Moore made the comments at the National Partnership for Women and Families luncheon on June 14 in Washington.”
Via CNS News
“Why did the U.S. government spend 2.6 million dollars to train Chinese prostitutes to drink responsibly? Why did the U.S. government spend $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”? Why did the U.S. government spend nearly a million dollars on a new soccer field for detainees being held at Guantanamo Bay? This week when I saw that the IRS was about to pay out 70 million dollars in bonuses to their employees and that the U.S. government was going to be leaving 7 billion dollars worth of military equipment behind in Afghanistan, it caused me to reflect on all of the other crazy ways that the government has been wasting our money in recent years. So I decided to go back through my previous articles and put together a list. I call it “The Waste List”. Even though our politicians insist that there is very little that can still be cut out of the budget, the truth is that the federal budget is absolutely drowning in pork. The following are 66 crazy ways that the U.S. government is wasting your hard-earned money…”