Simon Black, otherwise known as the sovereign man, produced the following report, outlining some points of interest.
Firstly, the 'assets' reported are partially made up of real things, such as federally owned equipment, buildings, roads bridges, and so on, totaling a paltry $3.2 trillion. But some $1.2 trillion of that figure are loans, of which student debt is the biggest contributor.
In other words, the government considers loans made to the people to be assets, which in accounting is not unheard of, but from a holistic perspective, it is a major sign that things are declining.
The government asset sheet is literally propped up by the hardship of millions of students, most of which are under or unemployed, having seemingly no hope of paying back these for-profit loans. We already know the government is in a parasitic relationship with the people, this is just more proof of that.
But wait, it gets worse.
On the other side of the balance sheet, are liabilities, how much the government owes in the form of debt. The official figure is $21.5 trillion, but the number is actually much higher when one considers unfunded liabilities.
This means the government is in the red by $18.2 trillion. The term describing when someone has more debt than assets is bankruptcy. This figure actually increased by $500 billion from previous year's $17.7 trillion, recorded in 2014. In other words, the government is bankrupt, broke, out of cash, penniless, and when a nation goes bankrupt it survives off central bank loands and needs to steal from the people to maintain itself.
But government bankruptcy is good news for clandestine financial powers such as central banks. As the economy becomes more constricted, the people and businesses in it need more loans just to survive, but are unable to pay them back, being forced to work or sell off assets to service the debt. Eventually the people have no assets left to sell, leaving a population who owns nothing, and a foreign banking institution that owns everything. The term to describe this situation is feudalism, where the people are serfs or wards of the state, lord or master. But in reality, feudalism is just a euphemism for slavery.
Related The Slavery of Feudalism Replaced with False Capitalism | Financial Feudalism
And that's exactly the situation we find ourselves in today, pandemic global slavery via acceptance of fraudulent debt; it's slavery by deception, or simply slavery by choice.
There have actually been several bankruptcies during the course of US history, each markedly changing the social fabric in the process.
Related Forbidden History: This United States is in its fourth (4th) bankruptcy
Related How and Why "The Money Masters" Took Control (Full Documentary)
The good news is, it's all a confidence game.
Money only exists because we say it does, and debts can only be truly valid if they are trustworthy and honest. And all government debts are founded on adhesion contracts, forced obligations that do not use established processes of negotiation, such as full disclosure, transparency and explicit consent.
Adhesion contracts are a form of commercial instrument for incompetent parties, people to unaware or traumatized to realize they're being deceived. In other words, adhesion contracts for an enslaved population. They operate under the presumption of acceptance via obligation, that we don't have a choice other than to accept what is offered, but this is a legal fiction, a fraud – oh and it's what slaves are told too, that they don't have a choice.
The truth is we always have a choice to rescind or renegotiation an agreement, especially when it was originally made under false pretenses, as all adhesion contracts are.
Related Debt Contesting Essentials - Contract, Consent and Conditional Acceptance | Unsecured Debt Can Be Terminated
What this means is that the people of a nation are only responsible for these illegitimate debts because they've been deceived into thinking they are valid. The moment a people realize they are being conned, they can take actions to remove their consent, issuing notices of mistake, and regain autonomy.
Related The National Debt Is Not For Americans To Payback | History of The Corporate Takeover of The Continental United States
This is what the powers that should not be of this world fear the most. And it is during times of financial hardship when a people are the most open to hearing the truth, when the game of confidence is at a low point.
So while economic turmoil can be difficult to bare, it provides a catalyst for spreading seeds of truth to those who are feeling the pain the most, for it is in the crucible of change that the soul has the capacity to grow the most.
Those who know the truth are empowered to speak it to those who have been deceived. We can't continue to let this fraud go on unchecked. For the people's ignorance is our enslavement.
Source - Sovereign Man
Hot off the presses, the US government just published its audited financial statements this morning, signed and sealed by Treasury Secretary Jack Lew.
These reports are intended provide an accurate accounting of government finances, just like any big corporation would do.
And once again, the US government’s financial condition has declined significantly from the previous year.
For 2015, the government reports $3.2 trillion in total assets.
This includes everything from financial assets like bank balances to physical assets like tanks, bullets, aircraft carriers, and the federal highway system.
Curiously, the single biggest line item amongst these listed assets is the $1.2 trillion in student loans that are owed to the government by the young people of America.
[Editor’s Note: As of February 29, we are correcting this to clarify that the report says “The Government held about $3.2 trillion in assets (mostly $1.2 trillion in net loans receivable (primarily student loans)”. Though student loans do not comprise the full $1.2 trillion, they are still a very significant proportion of the government’s “assets”.]
This is pretty extraordinary when you think about it.
37% of the government’s total reported assets are student loans, which is now considered one of the most precarious bubbles in finance.
$1.2 trillion is similar to the size of the subprime mortgage market back in 2008. And delinquency rates are rising, now at 11.5% according to Federal Reserve data.
Plus, it’s simply astonishing that so much of the federal government’s asset base is tantamount to indentured servitude as young people pay off expensive university degrees that barely land them jobs making coffee at Starbucks.
On the other side of the equation are a reported $21.5 trillion in liabilities, giving the government an official net worth of negative $18.2 trillion.
This is down from last year’s negative $17.7 trillion and $16.9 trillion the year prior. It just keeps getting worse.
But there’s one thing that’s even more incredible about all of this.
You see, each year these financial statements are audited by the government’s in-house agency known as the Government Accountability Office (GAO).
All big companies do this. They publish financial statements, which are then reviewed by an independent audit firm.
Auditors are a critical component of the financial reporting process.
It’s their responsibility to make sure that shareholders and the public can have confidence in a company’s financial statements.
When Apple publishes an annual report, auditors go through all the books of the company and make sure that management is accurately representing the company’s true condition.
Thus when an auditor issues a failing grade, or what’s known as a qualified opinion, there’s usually hell to pay.
At the very hint of impropriety a company’s stock price will tank immediately. People get fired. SEC investigations are launched.
And now based on US securities law and section 404 of the Sarbanes-Oxley Act from 2002, senior executives can face criminal charges if their companies receive a failing grade from their auditors.
This is serious stuff.
Yet year after year the GAO gives the federal government a failing grade in its audit report of America’s financial statements.
In this latest report, not only did the GAO chastise the federal government for its “unsustainable fiscal path”, but they state that the federal government consistently fails to prepare “reliable and complete financial information– both for individual federal entities and for the federal government as a whole.”
The Department of Defense, Department of Housing and Urban Development, and the Department of Agriculture are all singled out for their failure to prepare complete and accurate financial statements.
This is corroborated by a report published last year stating that the Defense Department has somehow “misplaced” $8.5 trillion of taxpayer money over the last 20 years.
The GAO cites other material weaknesses in the government’s reporting of supposed cost reductions in Medicare and Social Security.
In all, the GAO calculates that these financial uncertainties total $27.9 trillion, suggesting that the government’s true financial condition is far worse than reported.
Bottom line– if this were a private company, Barack Obama and Jack Lew would be wearing dayglo orange jumpsuits in court while facing felony fraud charges.
It’s not just the $18.2 trillion in negative net worth. Or the $41+ trillion (by their own calculations) in the Social Security shortfall.
It’s the fact that they can’t even stand in front of the American people with an honest accounting of how pitiful the financial situation really is.
The government of the United States is totally, desperately, hopelessly bankrupt. And they become even more insolvent with each passing year.
Nearly every single dominant superpower throughout history was eventually consumed by its unsustainable finances.
And in their decline from power, bankrupt governments rely on a simple playbook to desperately try to maintain the status quo by every means available.
They destroy freedom. They impose a police and surveillance state. They seize assets. They wage campaigns of violence and intimidation.
They impose capital controls. Cash controls. People controls. Whatever it takes.
This time is not different. The finances of the US government are obvious, as is the trend.
We’re not talking about what ‘might happen’ or ‘could happen’. We’re talking about what IS happening.
And this is not a consequence free environment.
Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.
Multiple times every week, we help over 100,000 Sovereign Man subscribers who are taking their family's liberty and prosperity into their own hands with our free publication, Notes From The Field.
About the Author
Simon Black is an international investor, entrepreneur, and founder of Sovereign Man. His free daily e-letter Notes from the Field is about using the experiences from his life and travels to help you achieve more freedom, make more money, keep more of it, and protect it all from bankrupt governments.
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