Is America Really Bankrupt or is that Impossible?

Is America Really Bankrupt or is that Impossible? How in the world can the Federal government perform a bailout and survive the repercussions of such an act?

Supposedly America’s Federal government cannot file for bankruptcy. Only State and local governmental organizations can file for bankruptcy. Nothing in the American constitution would allow the biggest enterprise in the world, to quasi-reorganize its debt and pay down long term debt, with an infusion of capital. And, cut fixed overhead to go forward with positive cash flow..

If so, the first target for a hair cut, would be government payroll of $1.9 trillion per year, including an accrual for pensions and health care benefits. With recorded debt, for the first time since World War II, 125% of annual GDP. And due to the supply line imbalance of trade fiasco, USA loses $1 trillion per year in profit and cash flow on that level of GDP. So the next haircut will be China who cost us $3 trillion in Covid costs and we owe them $1.3 trillion in long term debt treasuries, and down the line are also those we owe more than $1 trillion due to imbalance of trade … for example Japan $1.3 trillion, South Korea, Mexico, Canada and India another $1 trillion.

Also, the taxpayers, including corporations, barely pay in enough to cover the $600 billion interest on debt of $30 trillion ($90 trillion including State and Local debt, or $1 million per family, with $3 trillion interest paid annually), and unrecorded obligations, for Medicare, Medicaid, Obama care government pensions and Social Security that are not enetitlements, totaling $158 trillion per the debt clock. www.usdebtclock.org.

So, there will be a need for the wealthy individuals, that have been enriched by the Great American Enterprise, to invest in a capital offering to pay down the short term debt of $30 trillion dollars to a manageable level. Not a wealth tax but a 5% of net worth determined on generally accepted accounting principle as an investment in our future, keeping the debt ceiling not more than 50% of GDP or $15 trillion.

The return on the infused capital using treasuries will be at market value margins traded on the USA bond market. At 5% of national net worth, an infusion would need to be 5% of $118 trillion national net worth, or $5 trillion for working capital for paying amortized debt coming due each fiscal year.

Our current and past administrations since World War II, have contributed the highest government payrolls on record, with record spending deficits, and $1 trillion per year, in imbalance of trade losses, to put us in this debt-spending, insolvent position. In other words we cannot spend our way out of it or grow fast enough or long enough to fix it. Even President Trump knows this to be true, because he has filed a few times, for bankruptcy relief.

With the election of Joe Biden the USA is on another spending spreeh of $10 trillion for the next decade. How can a sitting President obligate a decade of spending when the term limit is four years. Especially, with a Green New Deal that eliminates $3 trillion per year in energy sales, and obligates America to continue to buy fosill fuel from foreign countries, increasing the imbalance of trade, by at least $1 trillion per year. A negative impact of $4 trillion per year on our already insolvent budget. Their needs to be a moritorium on deficit spending that isn’t covered by GDP cash flow, and doesn’t encumber future administrations with more debt.

Most Americans never heard of the debt clock, or the www.openthebooks.com websites. Have you, as a discriminating taxpayer, heard of the debt clock or open the books to see what the government agencies, are spending and why most of it is generating insurmountable debt and deficits. No accountability means bankruptcy.

Federal Income taxes only generate $3.6 trillion per year, our GDP is $24 trillion with State property and sales taxes another $3 trillion each, or a total of $10 trillion per year, to pay for budget outlays annually of $6 trillion Federal and $4 trillion State, and local interest of $600 billion, on foreign debt totaling $7 trillion, Just can’t ever be over come by taxes or GDP.

and trade imbalance payments of $1 trillion,

and Medicare/Medicaid of $1.2 trillion,

and Social Security of $1.1 trillion,

and Federal pensions $304 billion ($6 trillion unfunded),

and Defense $725 billion

and income security $1.7 trillion,

and farm subsidies $264 billion,

creating negative cash flow of $7 trillion per year.

To understand why, who are the highest paid Federal bureaucrats? Of the top 100 only two aren’t employed by the VHA (that’s Dr. Fauci and Dr. Garal of NIH)(Public Health officials who mismanaged the Pandemic).

The top five wage earners are all VHA and NIH employees, Dr. Garal $464,000, Dr. Fauci $434,000, Dr. Gibbons $422,000, Dr. Kim $420,000, Dr. Sonel $414,000, and add another $400,000 per year each to fund their pensions (80% of three highest annual wages) and retirement health care.

That’s $2.5 million in annual payroll, and another $1 million in benefits, or an average of a half million per person per year. This is higher than the President and most CEOs in the private sector make and they are at risk of losing their jobs if they don’t perform.

All of the 100 bureaucrats have been in government their whole careers, costing the VHA and NIH budgets upwards to $200 billion per year.

This is only two agencies of 115 Federal agencies, and another redundant 24 State agencies times 50 States, or 1,200 state agencies costing approximately a billion per year or a total of redundancy costs (waste) of $1.2 trillion per year. By privatizing certain Federal agencies and allowing the State or Local agencies handle the needed services. Currently, we could cut another $1 trillion just by privatizing Health and Human Services, Department of Education, Public and VA Health, Energy and Environmental Services.

Since, I’m a CPA by trade, these numbers have bankruptcy written all over them. On top of this Americans have $23 trillion in personal debt,

and $18 trillion in mortgage debt;

and $1.7 trillion student loans,

and $1 trillion in credit card debt,

of a total of $44 trillion, ($1.5 million plus $1 million for government debt per family, or $2 million per citizen),

and growing with inflation and value of the dollar falling under the current administration.

Am I over reacting or what? No, I believe that our current leaders at every government level, aren’t accountable for their failures in finance and economics. America is a giant enterprise not an institution, like a church or Congress.

There is a day of reckoning, when there is accrued interest to pay to China, Japan, South Korea, Russia, India, Canada, Mexico, Saudi Arabia, and America has exceeded its debt ceiling of $40 trillion being deferred (now it is $22 trillion with debt of $31 trillion). With GDP of $24 trillion or 125% of debt of $30 trillion.

Will government shut down and the dominos start to fall? I hope not, but hope has no bearing on demand for payment. Only BK stops the foreclosure clock.

So what can we the enterprising Americans do, if the constitution doesn’t allow this type of reorganization? The Congress will have to amend the constitution, to save the Great American Enterprise. What if a gridlocked Congress won’t do that … that’s why we need the swing vote of the third party. The American Enterprise Party.

You will find the solution to this hopeless situation, that took 75 years of mismanagement by both parties to develop, and can happen quickly after the creditors realize that America can’t pay its bills, in the American Enterprise Party Trilogy that proposes to drain the swamp and kill the woke alligators.

Volume One. propose a swing vote first step to recovery of our reputation, and why a swing vote will work by pulling the extremes of the two parties towards the middle, where the majority of Americans want us to be, then we have accountability for problem solving.

Volume Two, is how do you do it with the plan of quasi reorganization to defer current payments, failing policies and reduce obligations, so the country can continue to conduct business. Also, the need of operating capital is essential that those that have made excessive wealth be required to invest in 30 year treasuries for use in amortizing long term debt funding as we go, using accrual GAAP accounting … for Medicare, Medicaid, Social Security and Obama Care.

And require that all government pensions be funded by 410.k savings plans for all governmental employees with a matching as earned by employee performance standards. The same method that the private sector uses to fund employee merit pensions plans. As a result, all governmental record keeping will be based on accrual accounting using GAAP for budgeting and financial reporting.

And Volume Three, proposes that we restore the American work ethic, with patriotism and Humanism in the work place, so the monetary capitalist learns to share, and the human capitalist learns to earn, and provides a skill to bill, on time every time. Its quality as our strength, and sharing in the profit as our creed, for peaceful coexistence our organizational commitment is to our voters.

The American Enterprise Party Trilogy is on sale at bookstores, upon request, Amazon, Kindle and my websites. www.jerryrhoadsauthor.com and www.americanenterprisepoliticalparty.org.

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