For years the profligate-spending U.S. government has been desperately in need of a real plan to balance the federal budget that loses over a trillion U.S. dollars every single year. Now they have finally come up with one to cut the deficit amount by $3.6 trillion between now and 2028.
It has two main problems. The first and greatest is that it makes no cuts to defense spending, social security, or medicare. Yet these are the actual programs that eat up more than the government collects in yearly tax revenues.
Take 2016 as an example. The Feds spent a mind boggling $2.87 trillion for Social Security, Medicare, and Defense. Add in the $433 billion in interest on the $20 trillion U.S. national debt, and you arrive at a figure of more than $3.3 trillion for just those three programs plus interest on debt. The big problem is that this figure is greater than their tax revenue collection for the year.
So even if the government cut the entire rest of the Federal government budget and spending permanently it would still mean they were sinking more year by year. This includes Homeland Security (like the FBI), arts and sciences funding, welfare and unemployment, national parks, Department of Energy, and all other government programs. If they slashed it all to zero, they would still lose more money every year.
The second issue with the rosy budget cutting projections is that they base their hoped-for deficit cutting on the idea of the United States’ economy constantly hitting fully three percent in economic growth every year. This only happened on three occasions even in the booming 1990s. Sadly, even if they managed to accomplish it by some economic miracle, it would still not deal with the Federal Government’s over $46 trillion funding shortage for both Medicare and Social Security.
Now the two trust funds project they will both be out of money in just over a decade. These are their own financial statements which make these grim projections. That’s right, the $46 trillion figure for how much longer-term expenses exceed revenues is the government’s own number, as their statement below clearly shows on the bottom line:
At best they may manage to buy themselves a little more time to keep the various juggling balls in the air. Yet the end result which appears increasingly likely is for a major U.S. Federal Government default. The question is who will the government choose to default on when the juggling balls start to fall from the sky?
The U.S. Federal government owes the foreign debt holders and domestic creditors $20 trillion and counting. Defaulting on them would cause the world financial system (which is based on U.S. Treasury Debt and the dollar reserve currency) to completely collapse. You can not imagine the financial panic and human misery this would unleash across the globe.
Is Your Retirement Portfolio Protected by Gold Against The Inevitable Default of the U.S. Federal Government?
This leaves the U.S. government with the unappealing choice of defaulting on its own citizens via Medicare and Social Security. The big question is will it cause a gray-haired social revolution when they finally slash the programs that keep many members of the largest retiring generation in human history medically cared for and fed?
The day is eventually coming when the U.S. government will no longer be able to borrow enough money to cover its rising costs which annually exceed revenues. Every year, these only get worse as they spend far more than they take in (not even counting the rising interest on the debt). Gold has safeguarded the assets of countless people throughout all 5,000 years of recorded human history in times of government financial collapse. It will protect you too. Click here right now to obtain your free, no-obligation rollover kit from the industry-leading Regal Assets. This will provide you with all of the information you need to efficiently protect your retirement portfolio with a partial diversification of your important assets to tangibly held gold bullion.