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Unfunded liabilities are the difference between a program's projected costs and its projected revenues, both valued in today's dollars. Medicare and Social Security both have promised benefits that outrace revenue streams. They are the largest components of the government's unfunded liabilities, the hidden debt of the nation. But there are other federal retirement programs with not merely inadequate funding like Medicare and Social Security, but with no revenue streams of their own at all. Among them are retirement programs for military and federal workers. In September 2011, USA Today analyzed dozens of overlapping programs for retired federal workers. It reported that despite the existing debt crisis, Congress continues to add to the promised benefits, so that retirement programs now have a $5.7 trillion unfunded liability. The newspaper sums up its report on the retirement programs this way: Private employers are legally required to put money into pension funds to match retirement promises. Private pensions have $2.3 trillion in stocks, bonds, real estate and other assets. State and local governments have $3 trillion in retirement funds. The federal government has nothing set aside. The total unfunded liabilities of the U.S. government have been calculated with a number of present value and discount models. Results of the shortfall from these methods range from about $70 trillion to $120 trillion dollars. For a family of four this represents a liability between $900,000 and $1.5 million. (You can follow the debt as it adds up at www.USdebt.org.)

Update on that classic economic-political use case; "You have two cows". Hard to joke when the stock market has lost over $2 Trill in one week, and neither the government or the Federal Banksters Reserve show any concern.  Obama's golf game, fund raising and vacation schedule will not miss a beat.  Cape Cod calls and Obama is there.  Bernake and the Banksters met today, with a stock market begging for him to print up some more free fuel.  Bernake decides to stick with the plan and go with the collapse of the USA and the Dollar as scheduled. GOLD today is over $1780 /oz.  It's value in dollars has risen over $120 /oz since the raising of the debt limit to near $17 Trillion. The stock market melted down yesterday, crashing through key support barriers … shattering the confidence of millions of individual investors … and prompting most - who had been trying to turn a blind eye to the carnage - to start heading for the hills. Yesterday, Aug 9 2011 was the worst trading day since December of 2008. Just since the market began falling on July 26th, more than $7.8 trillion in equity has now been erased! Even though the Banksters are flush with $16.1 Trill in Federal Bankster Reserve coupons (GAO Audit of 2009-2010 Bankster books), the market can't seem to sort things out. And Banks stocks got hit hardest of all in yesterdays crash: US Bancorp and Wells Fargo were both down 9%. Huntington Bancshares and JP Morgan Chase declined 8.5% and 9.4% respectively. Fifth Third Bankcorp fell 11.4% and Capital One fell 12.08%. Regions Bank dropped 13.5% and SunTrust lost 13.9% of its value. Saw a National Media special on S&P last night.  These clowns gave Enron, Worldcom, Lehman Brothers, Ireland, Greece and Iceland their highest ratings right up until the eve of their collapse.  And then there's those trillions in garbage mortgage securities and derivatives rated triple A right through the collapse of the World economy

The White House no longer has a commander in chief in charge, but a professional victim. Last week, it was the Arab Spring, those damn Europeans, Mother Nature, etc. Now it is all about those evil tea partiers. For three years, Barack Obama has blamed George W. Bush for all his ills. Yes, it is true, Barack Obama inherited an economy sliding backward. But it is also true Barack Obama inherited a AAA credit rating from George W. Bush. Obama's policies have exacerbated a bad economy and caused us to lose our credit rating. But still, expect a full court press to blame the GOP and Tea Party. So I have some quick advice for the GOP. Back when S&P said it was considering a down grade, it set out two criteria to avoid losing the downgrade: (1) at least $4 trillion in cuts and (2) bipartisan support. Only the tea party movement came up with such a plan - Cut, Cap, and Balance. It received bipartisan support in the House, came within five votes of a majority in the Senate, and not only cut $4 trillion, but put caps on future government spending and balanced the federal budget. No other plan, including the public grand bargain and Barack Obama's own super-double-top-secret plan that no one has ever seen did that. Were I in Republican Leadership in Washington, I would haul my butt back to D.C. right now and start fighting again for Cut, Cap, and Balance. 66% of Americans support the plan. It is the only plan that would have avoided a credit decline. Go back and pick up the fight on the front lines for freedom. And if they just can't, they they better point out to the new Super Committee that it was, in fact, possible to cut $4 trillion without enacting job killing tax increases and encourage them to send back as its package Cut, Cap, and Balance.

The Tea Party passed two plans to restore USA crdibility and good standing: The Ryan Balanced Budget and the Cut, Cap & Balance plan. Both plans passed the House with bipartisan support. Both plans were acceptable to the credit rating agencies, including Standard & Poor. Both plans were blocked by the Democrats in the Senate, and, threatened with a veto from Obama. The people with no plan blocked the only plans that would have saved the USA credit rating. Rush made the point this morning that if Obama and the Democrats cared about this country, they would be insisting that both the Tea Party plans, the Ryan Balanced Budget and the Cut, Cap & Balance plans be put forward in the Senate immediately for a vote, with the full backing of Obama. Rush pointed out that if Obama and the Democrats didn't do this, or didn't come forward with a proposal of their own that actually qualified and met the credit ratings agencies $4 Trill - stop the reckless spending criteria debt concerns, then our worst fears would be confirmed. Our worst fears being that Obama and the Democrats are worse than mere incompetent socialist ideologues. That they are in fact out to destroy the goose that laid the golden egg: Constitutional Capitalism, American exceptionalism, and our God given right to life liberty and the pursuit of happiness that under-girds the extraordinary story of American prosperity. So Obama has a choice today. He either complies with the demands that the USA Government get it's finances in order by supporting the credit ratings approved Tea Party plans. Or, explain why his vision of a downgraded, prosperity bereft and indentured debt bound America is the way forward. Time to start demanding resignations. The fish rots from the head.

Contrary to popular belief, the US would not default. Troops would still be paid. Medicare and Medicaid would not stop. The Bipartisan Policy Center has a nice analysis in a PDF on Debt Limit Analysis. check out Mish's prioritized check list.  As the mythical USA Chancellor of the Exchequer, he enters the month of August having to come up with $132, 312 Billion.  The monthly cash flow pays $172,400 B.  Then he prioritizes, ending the month with $30.6 B to spare!  Mish reduces the deficit, leaving the note the very first thing to NOT PAY should be congressional salaries.  Here Here!

Author David Malone digs into world events, suggesting that all the saber rattling over Iran and nuclear weapons is really about GOLD!   He argues that the dollar is rapidly being replaced as the world's "settlement" currency.  As a function, "settlement" is different than "reserve", but since WWII and the Basel Conference, the USA Dollar has been both the currency of "reserve" and settlement".  That is now changing, and fast! David further suggests that the Iraqi wars with Saddam Hussein were also about his use of the Euro to "settle" oil purchases.  It could also be argued that Muamma Gaddafi in Lybia was removed because he was organizing all of Africa to "settle" oil and other commodity purchases in GOLD, and not the USA Dollar. Are the Islamic wars really about oil?  Or are they about how oil purchases are "settled"? David further argues that Russia, India, China and Japan are actively pursuing a GOLD based settlement currency agreement series where the Chinese Yuan plays a central role.  Interestingly, all of these countries have cut agreements with Iran.  Which seems to have triggered the December 2011 Obama response banning any banks, both private and government controlled, from dealings with Iran.   It's increasingly looking like it's not the Iranian nuclear weapons program that is upsetting to Obama and his Bankster buddies.  It's the rapid replacement of the worthless paper USA dollar as a settlement currency. One of the interesting points the venerable "Veterans Today" news sight is making is that our military is being used to forcefully prop up an inflationary Bankster Dollar, and force oil producing countries into accepting that inflated Bankster Dollar as payment.  The one thing the International Bankster Cartel doesn't want is for the trade of important commodities, especially energy, to be paid for in GOLD instead of the worthless paper they control. excerpt: I think the stand-off with Iran in the Straits of Hormuz over sanctions is a

Excellent article written by Peter Navarro and Greg Autry, authors of "Death by China: Confronting the Dragon -- A Global Call to Action". The authors explain why China MUST continue to buy US Treasuries regardless of the low rate of return and extremely high risk of default or ravage by inflation through the destruction of the dollar.  Very interesting.  But the game China is playing really looks unsustainable. The one thing the authors don't touch is the role International Banksters and their New World Corporations have played in this assault on American propserity.  I guess i have to get the book!   One last point; having worked for a Chinese Corporation desiring to enter the USA-European information technology markets, i don't doubt for a moment that Autry and Navarro have this exactly right.  We are at war, with Chicomms providing the shock troops for this latest Bankster - Bankster Corp assault on our liberty.

Not a big Peter Beinhart fan, but this article explains a large part of the Ron Paul phenom. After a life time as a big C Goldwater-Reagan Constitutional Conservative, this summer i made a full transition to big C Constitutional Libertarian. The tipping point for me was the GAO audit of the Federal Reserve, where they discovered $16.1 Trillion of taxpayer dollars missing from the Federal Reserve Bankster Cartel management books. It went to a who's who of international Bankster Cartel members. None of the taxpayer funded "financial collapse of 2008" bailout dollars went to the purposes chartered by their legislation. That includees the TARP $850 Billion, the Obama Stimulous $1 Trillion, and the mega FRBC $16.1 Trillion. No bad debts were purchased and retired. No rotting mortgage securities were swept up and restructured. No shovel ready jobs either. And no one in government or banksterism having caused the financial collapse went to jail. Instead, the perps feasted on the bailout dollars. The debt remains on the books of international Banksters, collecting interest, thirsting for foreclosure. The Bankster Cartel members are flush with cash, but not lending. By law (The Federal Reserve Act of December 23rd, 1913), FRBC members must keep a significant amount of their assets on "reserve" at the Federal Reserve, at 6% interest. In exchange for managing this process and the exploding money supply, the taxpayers of the USA are obligated by law to pay the FRBC 1% per year of (assets under management" (the money supply). Take note: the FRBC takes the 1% per year payment for their services in the form of GOLD!! They will not take payment in the form of paper notes labeled legal tender "Federal Reserve Notes". They only take GOLD. My transition to Constitutional Libertarian begins with a strct reading of the Constitution (the How), the Declaration of Independence, (the Why), and belief in the Rule of Law, not man. The concept of achievi

This link will take you to a public blog, the content of which comes from the collaborative work of the Diigo group, "Socialism and the End of the American Dream". The content for the Liberty in the Breach (http://goo.gl/AAFJ9) blog is posted directly from a Diigo.com group called "Socialism and the End of the American Dream". So yes, this groups bookmarking efforts are public.  The way this works is easy for anyone to to do, and I encourage everyone to make use of blog and RSS posts. The Diigo bookmark service enables groups of people to share tagged and categorized lists of bookmarks, but the only way to take these group collaborations truly public is through the blog and RSS posting mechanisms. There are also select sharing methods.  Each Group of bookmarks and comments can have any number of "Lists". A list is a subset of a group, but it can stand on it's own or serve many groups. The difference is that Groups have members and lists do not.  The effect of this separation is that you can publish or RSS any list to a Web Site or Reader, and not be concerned about errant group membership comments and posts. Fortunately we not encountered that problem with the End of the American Dream group.  The "Socialism and the End of the American Dream" group contains two prominent "lists": Banksters and USA-Constitution. There are other lists, but over time these two became dominant.  I started the "Socialism and the End of the American Dream" group in August of 2008 as part of my research and attempt to understand the financial collapse of 2008. What I found was quite chilling, and has nothing to do with "Socialism" or it's many forms.  I came to understand that socialism in it's many forms (liberalism, Progressivism, Marxism, Naziism, and Communism), is used the same as conservatism and corporate facism by a wealthy globalist elite to seize the instruments and resources of government for their own purposes.  So yeah, if I had the chance to rename to group, I

"Who owns the Bank of England? A brief history of World Banksters By Dark Politricks First a few historical comments by people who helped create two of the worlds most famous central banks, the Bank of England and the Federal Reserve. "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men." - Woodrow Wilson, after signing the Federal Reserve into existence The Bank of England was created in 1694 by a Scotsman William Paterson who famously said: The bank hath benefit of interest on all moneys which it creates out of nothing. - William Paterson The history of the Bank of England and how it was taken over by one powerful family hundreds of years ago. Up until 1946 when it was nationalised the Bank of England was a private run bank that lent money it created out of nothing to the English government and was paid back with interest. A very famous story relates to the Bank of England and the infamous Rothschilds, that all powerful banking family. This story was re-told recently in a BBC documentary about the creation of money and the Bank of England. It revolves around the Battle of Waterloo in which Nathan Rothschild used his inside knowledge of the outcome and his faster horses and couriers to play the market by getting the result of the battle before anyone else knew the outcome. He quickly sold his English bonds and gave all the traders who looked to him for guidance the impression that the French had won at Waterloo. The other traders all rus

It's an overall concept I've designated as the Democratic Bankruptcy Paradox: The paradox by which every democracy eventually goes bankrupt-regardless of the people's will and intention of keeping it from going bankrupt. That's why it's a paradox: The citizens of a democratic state are supposed to control its destiny. They obviously do not want their nation to suffer bankruptcy-yet in spite of their will and intent, democratic states always go bankrupt. Always. This post will outline my proof of why this is so. I will first explain the logic of my Democratic Bankruptcy Paradox theory, and how it is derived from a rather recently articulated problem in philosophy called the discursive dilemma, or sometimes the doctrinal dilemma; an aspect of group agency that has been used primarily in legal theory, but which I've realized has some fairly interesting-and radical-applications to macro-economics and public finance in representative democracies. I will then explain how the discursive dilemma, when applied to macro-economics and fiscal policy in a democratic regime, leads to the Democratic Bankruptcy Paradox. It is here that I will prove two general conclusions: * One: Democracies always act in a fiscally incoherent manner. * Two: Democracies always go bankrupt-without exception.  Finally, I will show how my Democratic Bankruptcy Paradox theory applies to the American case, and explain why the U.S. governments at the local, State and Federal level spend more than they bring in-even as their citizens uniformly oppose this state of affairs.

The established New York credit agencies would play a strategic role in this post-1971 dollar system. During the 1970's the US Government's Securities & Exchange Commission, charged with oversight of bond and stock markets, issued a ruling giving the then-dominant New York credit rating agencies-Moody's and Standard & Poor's (and later Fitch Ratings)-a de facto guaranteed monopoly in an unregulated market, when they ruled that only "Nationally Recognized Statistical Rating Organizations" would be qualified to issue appropriate ratings, i.e. only Moody's and S&P. Corruption was made endemic to the US ratings game and Washington was party to the dirty deal. By the end of the 1970's, using the vast amount of OPEC "petro-dollars" from the two oil price shocks in 1973 and 1979, New York international banks, using London, began to loan to the rest of the world to finance imports of oil and other essentials. The New York credit rating agencies, previously primarily rating US corporate bonds, expanded into the new foreign debt markets as the largest and only established rating agencies in the new phase of dollarization and globalization of capital markets. They set up branches in Germany, France, Japan, Mexico, Argentina and other emerging markets much like the US Big Five accounting firms. During the 1980s the rating agencies played a key role in down-rating the debt of the Latin American debtor countries such as Mexico and Argentina. Their ratings determined if the debtor countries could borrow or not. Financial market insiders in London and New York openly spoke of the "political" rating agencies using their de facto monopoly to advance the agenda of Wall Street and the Dollar System behind it. Then in the 1990's, the New York rating agencies played a decisive role in spreading the "Asia Crisis" of 1997-98. With the precise timing of its downgrades they could worsen the panic because they had been suspiciously silent right up un

I give a lot of credibility to this article's author when it comes to matters involving the oil market. Remember when reading that the only thing propping up the U.S. dollar is the Saudi (later extended to all OPEC nations) insistence that they be paid for their oil and natural gas in U.S. dollars, which creates artificial demand for the dollar globally. If the Gulf Coast States begin accepting payment in rubles or yuan, it is curtains for the U.S. dollar in global markets.  

Extensive explanation of how the Banksters and fellow globalists work.  this time with the focus on the Federal Reserve and Treasury activities in the Gold Market.   At the heart of this explanation though is the discovery that the German Bundesbank has emptied the vaults holding the entire German Gold horde.  The leased vaults were located in NYC, deep under the Manhattan Federal Reserve Bankster headquarters.  It's gone.  And the German people have yet to wake up to that fact.  Amazingly, Italy and Greece have more Gold than Germany - the country whose Banksters they owe billions in debt to. Business Insider has an Aug 2012 list, form the World Gold Council, of the 10 Countires with the biggest Gold Reserves: http://goo.gl/IGU3n Italy is #3, and Germany is #2.  The USA is #1.  Notably, according this BI report, Germany has refused to use their Gold to bolster the European Financial Stability Fund (EFSF).  Maybe it's because they do not have any GOLD?  Inquiring minds need to know :) "Turk added, "Half of the gold they (the Germans) leased themselves.  The other half of Germany's gold hoard was eventually leased into the market as well through complicated swaps with the US.  But the reality is that as of 2001, all of that German gold was gone.  Meaning all German gold worldwide, which was supposed to be stored in vaults, the vaults were emptied of German gold and the gold was leased into the market." Turk went on to say, "It's uncertain if any of that leased gold has ever been returned to those vaults.  Meaning, the vaults which are supposed to be storing the German gold hoard may still be empty." Incredibly, 11 years ago James Turk had diagnosed the problems of the missing German gold hoard.  Here is the 2001 piece titled, "Behind Closed Doors" in which he exposed the German gold was in fact missing: "

Exceellent repub of Mike Shedlock's wonderful article describing the 3 Schools of Economic Wizardry.  Includes a simplified but exacting view of the "why and how"  the Keynesian and Monetarist Wizardry Schools wreck havoc on the world.   ... Keynesian Voodoo Wizards ... Monetarist Voodoo Wizards ... Austrian Realists Remember the voodoo motto: "If it doesn't work, keep doing more of it, even if that is what got you in trouble in the first place!" ..... Excerpt: Once upon a time (today), in a land not so far away (USA), there lived a trio of economic wizards (economists), whose names shall remain anonymous (Paul Krugman, Greg Mankiw, Ben Bernanke). A fourth wizard, Murry Rothbard, is no longer among the living but resides in the netherworld. The above wizards seldom agree with each other because they come from competing schools of wizardry. Three Schools of Economic Wizardry 1. Keynesian School of Fiscal Voodoo and Witchcraft 2. Monetarist School of Monetary Voodoo and Witchcraft 3. Austrian School of Sound Money, Sound Economic Principles and Common Sense. "Dark Arts" Wizardry The first two wizardry schools belong to a class of wizardry promoted to aspiring wizards as the "Dark Arts." Philosophical Beliefs Keynesian wizards believe governments can spend their way to economic health and although fiscal deficits may matter at some point in time, they never matter now, in practice. Monetarist wizards believe money will cure any and every problem if enough is dropped from helicopters and interest rates held low. Austrian wizards believe that economic problems are created by unsound money, haphazard loans, excessive debts, and government manipulations. Keynesian and Monetarist wizards believe in the voodoo principle "the problem is the solution if only you do more of it." The former relies primarily on fiscal voodoo; the latter relies primarily on monetary voodoo. Austrian wizards do not believe "the problem is the solution," no matter ho

The printing presses have been smoking, working night and day, printing money like there is not tomorrow.  Meanwhile, the USA government is spending money and creating debt like there really will not be a tomorrow.  This article is reprinted from Bloomberg Financial News.  It's a shocker.  Turns out that as the dollar falls, there is no where to hide.  Other nations are too heavily invested in non yeilding treasury notes to save themselves.  We're looking at hyperinflation.  The kind that will bring down the world and probably usher in a Wrold War III.  

Very powerful video entitled "Wake Up America".  Covers Cloward-Piven / Saul Alinsky "Rules for Radicals" strategy.  The core idea being to load up America with unsustainable debt, cripple and hog tie the capitalist engine of prosperity, then create/manufacture crisis after crisis where Americans are forced to turn to bigger and bigger Government solutions until their liberty and the Constitution disappear.

ICLEI is a UN Agenda 21 initiative.  It's a direct assault on property ownership rights.  I had my own first hand view of these Marxists at work in the small town of Belmont California, when the Fire Chief presented a plan to turn 2/3rd's of the cities land over to the State by declaring it "a risk fire hazard zone".  The declaration would move the 2/3rds to State control and regulation, dramatically increasing the costs of building codes compliance and insurance, while effectively ending development and property improvement.  It would also end the sale of homes in these sectors since Home Owners insurance and property compliance would be prohibitively expensive.  Agenda 21 at work.  Right next door.   From TeaPartyORG:  http://goo.gl/QHIOS ......   "The International Council for Local Environmental Initiatives (ICLEI) is a conglomerate of 600 national, regional, and local government associations who promote "sustainable development" and protection of the environment because of man-made global warming that does not exist. "Sustainable development" is the United Nations effort to contain and limit economic development in developed countries and thus control population growth. It is "sustainable de-growth," plain and simple. The focus is "low-income agriculture" and to set limits on the developed world. United Nations and its affiliates believe that first world countries polluted significantly during their development while urging third world countries to reduce pollution thus impeding their growth. Implementation of"sustainable development" would revert our society to a pre-modern lifestyle. ICLEI wants to keep the environment as pristine as possible through "ideal-seeking behavior." These euphemisms are not clearly defined in terms of what or who will evaluate or set the standards for this "ideal-seeking behavior." Agenda 21 sets up the global infrastructure to manage, count, and control assets. It is not concerned with