Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The US Government’s Net Worth Comes in at Negative $21.5 Trillion

  by    0   1

The net worth of the US comes in at negative $21.5 trillion.

This according to the Financial Report of the United States Government recently released by the Treasury Department.

The report is a summary of the financial condition of the United States. In a nutshell, it’s less than ideal.

Total net worth — the country’s assets minus its liabilities — is just one of many disturbing data points you will find in the report.

The US government owns $3.8 trillion in assets. The largest asset is $1.4 trillion in “net loans receivable.” These are primarily government-backed student loans totaling $1.08 trillion. In an article published by Sovereign Man, Simon Black it neatly into perspective.

In other words, the government’s #1 asset is the debt owed to it by young people across America. That’s pretty sad.”

Meanwhile, the government’s liabilities total more than $25 trillion. This includes the national debt, accrued interest, and federal employee and veteran benefits.

When you include the government’s estimate of Social Security’s unfunded liabilities, the country’s net worth drops to negative $75 trillion. Black notes that this is roughly the size of the entire global economy.

It seems a bit of an understatement when the Treasury Department calls current US fiscal policy “not sustainable.”

The long-term fiscal projections indicate that the government’s debt-to-GDP ratio will rise from 78 percent in 2018 to 530 percent over the 75-year projection period, and will continue to rise thereafter, if current policy is kept in place. The projections in this Financial Report show that current policy is not sustainable. These projections assume that current policy will continue indefinitely, and are, therefore, neither forecasts nor predictions. Nevertheless, policy changes must be enacted so that financial outcomes will be different than those projected.”

Keep in mind, the government uses a conservative debt to GDP ratio. Many analysts say the ratio already stands at 105%.

In fiscal 2018, Uncle Sam showed a net loss of $1.16 trillion. The federal government collected $3.4 trillion in tax revenue, but it spent over $4.5 trillion.

Nearly half of government spending went to Social Security and Medicare.

The government spent $523 billion paying interest on the national debt.

During fiscal year 2018, the budget deficit increased by 17.0% and gross cost increased by 4.4%.

For Fiscal Year 2018, the government reported $581 billion in equipment (mostly military), and about $500 billion in real estate.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Singapore Adds Gold to Reserves for the First Time in Over 2 Decades

Singapore expanded its gold reserves by about 20% earlier this year, joining a growing number of countries increasing their investment in the yellow metal.

READ MORE →

Silver Demand Expected to Exceed 1 Billion Ounces in 2021

Every key area of silver demand is forecast to rise in 2021, according to the Silver Institute’s Interim Silver Market Review. The institute projects silver demand will come in at 1.029 billion ounces this year. That would mark the first year demand has exceeded 1 billion ounces since 2015.

READ MORE →

Jerome Powell 2.0

President Joe Biden has tapped Jerome Powell to serve a second term as chairman of the Federal Reserve. Biden said Powell’s “steady leadership” helped calm markets as governments shut down the economy due to coronavirus, and he expressed confidence in Powell’s future leadership. “I believe Jay is the right person to see us through,” Biden […]

READ MORE →

The Fed Pulled Off a Masterful Manipulation of the Junk Bond Market

The Federal Reserve pulled off a magnificent manipulation of the junk bond market, facilitated a massive wealth transfer from savers to speculators, pocketed millions of dollars, and then washed its hands of the matter. In March 2020, as governments shut down the economy for coronavirus, the Fed slashed interest rates and launched a massive quantitative […]

READ MORE →

Poland Plans to Add Another 100 Tons of Gold to Its Reserves

During a recent interview, Bank of Poland President Adam Glapiński said the central bank plans to add 100 tons of gold to its reserves in 2022. In 2018, the National Bank of Poland began aggressively adding gold to its reserves. Through the first half of 2019, the Polish central bank added more than 100 tons of […]

READ MORE →

Comments are closed.

Call Now