Is the United States Really in Debt?

By Chandrashekar (Chandra) Tamirisa, (On Twitter) @c_tamirisa

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Cirque du Washington about the government budget of the mighty United States of America, from sea to shining sea and beyond, can be at its most skilled political gymnastics, but the citizens are not getting their money’s worth. The political class in the nation’s capital led by Mr. Ice Man, President Barack Obama, in an age of melting glaciers as if to cool them down, likes to buy MIGs in Afghanistan rather than get into a dog fight with them these days, not that they should.

Foreign and military policies are being bungled to save the bureaucracies at the CIA and the Pentagon, enabling those humbled by the fall of the Berlin Wall to hang America using its own noose and sell it something in return. To this wound of incompetence in the name of global kumbaya of a prematurely Nobel-winning president is being added the real peril of an economic crisis because of all the borrowing to buy Saudi oil, Russian military goods and Chinese everything else, as if letting others avenge the financial dalliances of America’s Masters of the Universe could be a way of earning goodwill by letting the ghosts of hurts of the past rest in peace to unite the world, not because of a humble America but because of a humbled America. All because America can afford it, having lost its mojo to lead for the better without it being at its expense.

Nobels come with a certificate of citation, a cash prize and a gold medal. The certificate and the cash are in paper but the gold is of real value, and increasingly so as the fiat paper is piling up like ticker tape on the Avenue of the Americas in Manhattan after the Fed’s helicopter Ben is dropping it like the God’s Great Flood, just as he expected to do so coming into the Fed in 2003 as if he was God, from a helicopter ― Russian or American the denizens of Manhattan neither know nor care to know. There is no Noah yet to save the species on the American Titanic, as its gulfs leak oil into the pristine waters only for oil prices to rise more and more. The planet is caught in the Fed’s liquidity trap.

The privileged geniuses on Wall Street, so full of themselves having stuffed their pockets with paper to print which the government must borrow, have forgotten what real means, having taken it for granted. Modernity has peaked in Ayn Rand’s Manhattan, completely inverting the hierarchy of the true and the superficial. Therefore, Atlas shrugging may not matter when the fountain head of integrity has dried up, gaudily displaying the yang of the human condition.

The United States of John Galt still has plenty of gold sitting in Fort Knox, Kentucky, becoming the subject of James Bond movies rather than being of real value. And it has tons of minerals and barrels of crude oil and millions of cubic feet natural gas under its lands. Besides, of course, plenty of land. The government even has a website to sell government property routinely. Yet, the nation’s leaders are debating an imminent bankruptcy as if the United States is the United Kingdom.

There can indeed be a perfect analogy drawn between households which cannot print money and the federal government which can, if the government decides not to indulge in blasphemy with the Gutenberg’s printing press at the Treasury and the Federal Reserve. Bankruptcy would then be similar for both. The creditors will divvy up the physical assets to account for the unpayable debts.

The U.S Treasury keeps its books like a household keeps its checkbook. Real assets and encumbrances on them are not accounted for except in divorce or bankruptcy or both (the prenuptial of the Constitution no longer matters these days). Then why not bring the time varying value of the physical assets onto the budget of the United States? America is so wealthy if only it knows how to count and account for its real wealth, besides, of course, the intangible of its people and its political organization.

The national debt, really, is zero. The real story is a foreign economic policy that has gone awfully awry and a political class that has lost sight of what the country really is and is about. America has lost its way in the “dreary desert sands of dead habit.”

I’ll fly with you, if only that you is Maverick.


About Chandrashekar (Chandra) Tamirisa
This entry was posted in Economics, Energy and Natural Resources, Finance, Foreign Policy, Government, Politics, Transformations LLC and tagged . Bookmark the permalink.

One Response to Is the United States Really in Debt?

  1. mlhayes1 says:

    Not all of the Americans are lost and lead by arrogant stuff shirts on Wall Street. After a long dark night filled with brief nightmares of terrifying brutality, slowly; almost imperceptably, new leadership is forming and steping forward. The Western ideals of liberty, priviledge and freedom are being reexamined with an eye on the global ramifications of our cultural and traditional concept of life on this planet.

    Many fail to understand these facts. America has always been a tale of two peoples. The poor, the downtrodden, the huddled mass that came on ships looking for opportunity and the well endowed, socially heeled and financially backed who flew in for a look and never went back to where they came from. Both kinds of Americans brought with them ideas and ambitions that made the nation entirely different from every other nation or kingdom on the planet.

    They would loose their way often, but usually this did not result in a global catastrophy. They would commit atrocities against and the facts would covered up with red, white and blue bunting and declared a part of manifest destiny as though God has something to do with their murders and assasinations.

    Just about the time when it seemed that the whole thing was a big mistake far worse than any monarchy or despot dictatorship; an election would be held and somehow, the people would find new promise and hope in thier ambitions voiced at the poles.

    Today, we know that in recent times, the voices the people have been ignored. Leaders who swore to do right have been revealed to be cheats, adulterers and thugs. The expensive suits and trappings of power aside, they were and are simple theives in the legistlatures of federal and statehouses. They are purchasable and the enemies of freedom as we understand it have acquired them for a price.

    Some are quite aware of their indenturedness and others prefer to behave as though they are not servants of foreign and domestic interests with no alliegence to the benefit of the people who elected them. They have no shepherd instincts and a real disdain for common people. They are politically sick. Power-sick. It is a sickness akin to alcoholism only a drunkun person can recover with time, but an alcoholic will only get worse without treatment.

    Our elected officials are so powersick that they think everyone that isn’t like them is abnormal. The cheif sympthom is that there is never any satisfaction in their actions. They don’t seek to satisfy, but to perpetuate a continual appetite for insatiable project activities. They consider plowing when it is time to irrigate and harvesting when it is time to plant. Details are for loosers and inferior people.

    The point is, they have rigged the accounts to reflect their thinking and ask us to consider the possible as the actual. So the debt clock says 14.3 Trillion but what part of the clock is owed to whom? Roughly 80% of the clock is owed to future generations who obviously have no way of collecting on the debt. This is the way of the system of the powersick. No scupples, sell the children to themselves and let them figure out the future when it becomes their present.

    Over ensuing

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