The U.S. Treasury Department recently announced that it's normal, annual calculation of the U.S. deficit will be delayed by more than two months – and not released until February of next year. However, you will not read about this in any mainstream media outlet.
The reason for this omission? The mainstream media refuse to even report this deficit calculation, itself. As for why the media intentionally ignore this once-a-year calculation of the deficit, it's because this calculation is made without any of the lies and half-truths which are contained in the “official” deficit which the media does report. This calculation is conducted using the same GAAP accounting rules (Generally Accepted Accounting Principles) which all U.S. corporations are required to adhere to, by law.
Using legitimate accounting methods, U.S. deficits (calculated by the Treasury Department) have been averaging over $4 TRILLION per year throughout this entire decade – including all the bubble-years, when the U.S. economy was supposedly prospering. However, with government revenues collapsing, those “good times” of only $4 trillion/year deficits are now behind the U.S.
Last year, the Treasury Department calculated the official, GAAP annual deficit at $5.1 trillion. Obviously with spending way up, and revenues way down, the number for this year will be much higher. John Williams, the unofficial source for U.S. statistics at shadowstats.com (for those people who have no use for government propaganda) is expecting this year's calculation for the 2009 fiscal year to approach $9 trillion.
Keep in mind that in the fantasy-world of White House accounting that the Obama regime is “predicting” a total deficit of $9 trillion over the entire, next decade. The reason why the “official” deficit numbers are so radically different from the real budget numbers for the United States is that with GAAP accounting, the government is not allowed to hide its “unfunded liabilities” off of its balance sheet.
Follow the 'logic' here. The U.S. government knows it must radically slash all healthcare entitlement programs, or the U.S. is certain to go bankrupt some time over the next decade. However, the politicians can't cut spending because it would be too politically unpopular. The reason why such benefit cuts would be so unpopular is because the government engages in these enormous lies that the U.S. economy is not facing imminent bankruptcy.
And so this merry-go-round of cowardice and deceit continues. Not only are U.S. politicians afraid of doing the right thing when it comes to the U.S.'s out-of-control spending, but they are afraid to even tell the American people anything remotely close to the truth when it comes to government finances. During the Bush years, the fantasy-deficits reported by that regime totaled as little as 5% of the real deficit.
As I have also mentioned on several occasions, the U.S.'s two-party dictatorship conspires among themselves to hide this information. Don't you think the Democrats could have scored enormous “political points” by pointing out that the official, Bush deficit numbers drastically understated the real deficits?
Now that the Democrats hold the White House, don't expect the Republicans to violate this conspiracy of silence and tell the truth about U.S. deficits, either. When the Treasury Department does finally release this data (after the voting takes place on the expensive, Obama health-care bill), whether it reports an $8 trillion or $9 trillion deficit, don't expect the Republicans to expose these lies.
The countdown to U.S. bankruptcy is rapidly ticking away – and the American people have no clue about what is really taking place with the finances of their own government. The Orwellian, two-party dictatorship which mis-governs the United States can agree on very little, but the one area where they do achieve perfect consensus is in hiding the truth from the American public.
Obviously, the puny $11-trillion U.S. economy can not survive $9 trillion annual deficits for more than a few years before this hopelessly insolvent nation implodes on its debts – in at least as devastating a collapse as what took place in the former Soviet Union. The only 'escape' from this fate is to hyperinflate-away these incomprehensibly huge debts. However, all that such hyperinflation will accomplish is to create an even more horrific collapse a few years later.
This matters little to U.S. politicians. No matter how bad things become in the U.S., elected politicians (and their families) will never go hungry. Thus, all that matters to these corrupt opportunists is to get re-elected. Hiding the truth will remain the highest priority of the U.S. political system. When the Treasury Department releases its once-a-year report on the true condition of the U.S. economy (something it only does because it is mandated by law), every U.S. politician will ignore this report, and no mainstream U.S. media outlet will report it (other than in tiny print, buried beneath all other news).
There are no “miracle” solutions here. The chance to salvage the U.S. economy – intact – has already passed, years ago. The least-worst option for the American people is to face their national default/debt implosion now – as each year of delaying this only makes the final collapse that much more devastating when it finally takes place.
None of the $10 trillion in loans/hand-outs/guarantees to Wall Street should have been wasted on the oligarchs, as every penny of that money is needed to lessen the pain of total economic collapse for the American people. This would be completely obvious to everyone if U.S. politicians and the U.S. propaganda-machine stopped hiding imminent, financial Armageddon from the American people.
What is truly astounding, at this point, is how and why foreign creditors have failed to notice the true state of U.S. finances. Unlike the convoluted fiction of the U.S. “official” deficit, this GAAP accounting of the true state of U.S. finances is crystal-clear: the U.S. economy is hopelessly insolvent.
On the day that the true state of the U.S. economy finally becomes common knowledge, Americans can also expect to be totally cut-off from all foreign credit – unless and until the U.S. formally defaults. This is another reason why hyperinflation is 100% inevitable, if the U.S. continues to delay its debt-default.
The propagandists are unable to twist numbers as clear (and as huge) as the real U.S. deficit – and so they simply refuse to report it.