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Presenting the US government’s infographic of its own insolvency

April 20, 2012
[Undisclosed location]

Here’s a fun way to cap off your week.

The Congressional Budget Office has just released three very telling infographics which, unintentionally, spell out a pretty dreary picture of US government finances.

The first graphic shows US federal revenue, both in raw numbers ($2.3 trillion in 2011) and expressed as a percentage of GDP (15.4%).


There are a lot of interesting things about this graphic. Check out the massive downward swing of payroll tax receipts starting in 2009… coinciding not only with the dismal rate of employment in the country, but also the demographic trend of having fewer and fewer baby boomers paying in to the system.

It’s also interesting to note that, by comparison, 2011 US tax revenue is roughly twice what is was 20-years prior. Yet over the same period, the federal debt has ballooned nearly five-fold.

The next graphic is mandatory spending– essentially Social Security, Medicare, federal unemployment, and federal retirement programs. Note: this doesn’t include things like defense, interest on the debt, etc.

Mandatory Spending

At $2.0 trillion, these mandatory entitlements comprise a massive 87% of all taxes collected. Put another way, they constitute 13.6% of America’s 2011 GDP. Incredible.

The last graphic shows ‘discretionary’ spending– another $1.3 trillion. The bulk of this is defense ($699 billion), itself nearly 5% of GDP. The rest of it goes to child molesting TSA agents, government-administered education, and all the legions of three letter agencies.


At the very bottom corner is a most disingenuous statement that says “Net Interest not included.”  In other words, they didn’t bother to include the $454,393,280,417.03 (nearly half a trillion dollars) that the US government spent on interest last year.

To put this number in perspective, the US paid more in interest last year than the entire GDP of Saudi Arabia, or the combined GDPs of the smallest 82 economies in the world. Not exactly a trivial number… unless you’re Tim Geithner.

A few days ago, Geithner quipped on NBC’s Meet the Press that there is “no risk” of the US turning into Greece over the next few years due to such extraordinary fiscal imbalances.

This is the same guy who said there was no risk of the US losing its AAA credit rating, and that inflation on a global level is “not high on the list of concerns…”

Whether it’s lies, ignorance, or arrogance is irrelevant at this point. The situation is what it is. It’s not going to go away just because the political leadership denies it.

Each one of us has a choice. We can either bury our heads in the sand, just like they’re doing… or embrace reality and take control of our own financial futures.

Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens.

If you liked this post, please click the box below. You can watch a compelling video you’ll find very interesting.

Will you be prepared when everything we take for granted changes overnight?

Just think about this for a couple of minutes. What if the U.S. Dollar wasn’t the world’s reserve currency? Ponder that… what if…

Empires Rise, they peak, they decline, they collapse, this is the cycle of history.

This historical pattern has formed and is already underway in many parts of the world, including the United States.

Don’t be one of the millions of people who gets their savings, retirement, and investments wiped out.

Click the button below to watch the video.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

Comments on this entry are closed.

  • itflowsthru

    ” We can either bury our heads in the sand, just like they’re doing… or
    embrace reality and take control of our own financial futures.”

    …and just what is it that is bbeing suggested as a way for us to ‘take control of our own financial futures’?

  • Dadsplace

    Maybe this is a reader new to these topics that asks …”just what is it that is being suggested a a way for us to take control of our own financial futures?”

    One simple, inexpensive & cost-effective starter solution: buy and hold physical silver.

    • Bonanza 35

       Legislation has already been passed in WA state and likely many others to confiscate all amounts over $100.

  • Hiday_happy

    hey simon..are u always at the hotel riu panama plaza thailand?im thinking i want to go there

  • http://www.michaellockyear.com michael lockyear

    Actually Geithner is right – there is no risk that the US will become the next Greece.  The US government borrows in  dollars – if necessary it can print it’s way out of debt.  This would effectively involve stealing value from anyone holding dollars – but this has never stopped governments before.

  • Mike on Fire

    This is all fine and dandy if you believe the GDP is a real number. If I was to take a guess, I’d say 35-40% of the GDP is an illusion. We’re on a sinking ship but the captain knows… when all else fails…lie! Take a third off the GDP… then recalculate. Then you’ll see what this parasite disease has really done.

  • Kenny

    Taxes on the wealthy are lower now than they ever have been. After 30 years of Regan “VooDoo” economic thinking, the tax burden has been almost completely shifted onto the working class in the form of local sales taxes. Why do I have to pay for a “Defense” that does nothing to protect my personal life, but I pay to protect all of those rich investors overseas? I say pull all of our troops out of those countries (Korea, Europe, e.t.c.) and then spend that money on massive infrastructure here in my home town U.S.A. That would cause a boom here. And while we are at it, lets legalize Gay Marriage. Can you imagine the economic effect that would have? Possibly Billions of dollars spent on caterers, Photographers, Wedding rentals, etc.

  • GoodBusiness

    This does not include the UNFUNDED LIABILITIES – retirement of UNION workers, Post office, GSE, SS, SSDI, social welfare, and many other items – they are not projected some are not even included at all.

  • Delia Lopez ForCongress

    Chris Martensens crash course shows the funny numbers for the GDP and yup its much lower than they admit. 

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