THE FIGURES DON’T ADD UP
Mon 10:41 am +01:00, 26 Apr 2021English edition.
(In italiano: https://andreacecchi.substack.com/p/i-conti-non-tornano)
Another person who worries about global trends is Michigan State University economics professor Mark Skidmore,
https://www.canr.msu.edu/people/mark_skidmore
government budget expert, who in a recent interview tried to explain how the US government managed to make 20 trillion dollars disappear. Twenty trillion dollars that literally: CANNOT BE FOUND ANYMORE!
Again, this is a university professor of economics who specializes in the auditing of public budgets. A person of extreme competence and authority! It is worth hearing what he reveals to us.
In this exclusive interview with the excellent UsaWatchdog channel, the university professor explains how the American budget works and how trillions of dollars are simply not counted. For this reason, the suspicion of many financial operators, who have their eyes on the exponential growth of American debt is growing, that the visible figures are only a fraction of the invisible ones.
The question is: how much money is there in addition to the officially declared figures?
“Since the start of the pandemic, $ 4.5trillion of new debt has been created. I can understand the fact that deficit spending is necessary at a time when it is necessary to face an emergency, but the strange thing was the implementation of lockdowns. Why must everything be closed? Such a thing has never been done. And here we are with over 28 trillion in debt, we have just approved a package worth another 1.9 trillion, but that’s not enough, another $ 2 trillion in infrastructure spending will follow. We have to pay interest on all this debt. We can do it if interest rates remain low, but if rates start to rise, the pressure on the budget becomes dangerous and this must not happen. Rates cannot go up. The federal government will ask the Federal Reserve to monetize this debt, perhaps even all of it, in order to keep interest rates low. But there is also inflation that pushes, and that is affected in an inverse manner with respect to rates: low interest rates, rising inflation. We are still in negative territory, if we look at interest rates related to inflation. This creates tension and is unsustainable. Something will happen
Last year, the Defense Department leaked a report, picked up by Bloomberg, that $ 35trillion was lost in 2019. The same thing happened in 2017 and 2018 for $ 94trillion which adds up to the missing $ 20trillion initially reported by the Government. To these shocking sums, we must also add the figure of another $ 30trillion of total official debt, taking into account the latest stimulus plans.
From an accounting point of view, this doesn’t make much sense. The figure reported by Bloomberg was undocumented. I tried to request the accounting books, to verify, but it was not possible to obtain them. This is $ 94trillion in the defense department alone. One of hundreds of government agencies. When I asked for proof of those expenses, they replied that they are “un documented accounting adjustments”. $ 94 trillion of public money, without knowing how it was used by the military.
In 2015 I submitted an official request following the FOIA protocol https://www.foia.gov/
Relative to an expense of $ 6.5trillion in unverified transactions. There was a reference to 170 transactions that interested me and so I submitted a FOIA request and the response I received was all partial and with deletions everywhere. There were things like $ 400 billion transactions that were bigger than the entire army budget. And the answer was:
<WE HAVE NO INFORMATION ON WHAT HAPPENED HERE>
Once they replied that “the customer did not provide enough information” … But how is it possible that an expense exceeding the annual budget of the entire United States army can be accounted for without any type of supporting documentation?
This is what happens when someone knows the thing is about to explode. Like when someone knows that that they will never be able to pay off the debt, and then starts buying all kinds of things using all the credit cards available, because as far as he’s concerned, when the bill arrives he will not pay it.
We have lived in debt for too many years. The amount of debt has grown much faster than the real economy. We could do this by expanding public and private debt at artificially low rates, but my feeling is that we are coming to the end of this cycle of debt and this monetary system. We all know that we are moving towards a digital monetary system. Congress is about to pass a law called “bank for all” by which the central bank, the Federal Reserve, is authorized to create a digital wallet for every citizen, so that, during the next financial crisis, instead of waiting for a stimulus plan from the government, the central bank may have the authority to credit individuals electronically. All nations are working on the same project.
Now it’s kind of a race. The old system is still kept afloat, but on the other hand we are actively working to get the new one started. And when will the two systems merge? I expect a lot of volatility! It might even explode! I don’t like the ideas of digital currencies and vaccine passports. Apparently, they look like two ideas traveling on separate tracks, but I think they will be integrated sooner or later. And I think that all the information that can be found in a digital system will serve to better control us. The creation of new global debt serves to prepare us for the new system, and the transition will not be smooth.
We have lost a large chunk of our rights. How do you reverse the course? The tens of trillions that are missing from the appeal have all the characteristics of being the result of fraudulent operations. The entire federal government accounting system is fraudulent! I am just a simple economics professor specializing in budget analysis, this is not aerospace engineering! All I do is tell you what is written on the accounting documents.
We are all bogged down in this system, but we must prepare ourselves for an epochal change. There will be difficult times. I repeat, we must prepare. Limit our debt, buy gold and be as independent as possible. This system is about to explode. There are millions of billions in derivatives and REPOs. The derivatives market is so huge and so complex; and who knows if these trillions that have disappeared from the government budget have also ended up in the pot of derivatives? Although 94 trillion dollars ($ 94,000,000,000,000) is peanuts in a quadrillion market. A drop in the ocean! These are figures that go beyond the possibility of being imagined.
I don’t know exactly how it will end, but my instincts tell me this story is going to end badly. With a sudden catastrophe, contextual to a new financial system much more draconian. Are things bad now? They will get worse! I thought it would happen sooner, but instead the system contiunes and we will probably still see inflation like in the seventies / eighties .. Double-digit inflation with effective interest rates in the negative zone. But my instincts tell me it could be much worse.
Let’s recap: there are at least 115 trillion dollars of transactions with no supporting documentation. The US government is unable to tell us where they disappeared. To this $ 115 trillion is added $ 30 trillion of officially declared public debt. This makes 145 trillion dollars. However, let us not forget the promises of payment made in the social security, medical and welfare systems that are underfunded. I need to check the figure better, but that’s another $ 200 trillion worth of payment promises. These are unsustainable commitments and thanks to the health emergency, they are increasing every day, vertically.
I am a fan of transparency and people who act with rectitude , who honestly answer questions when asked. I asked questions. There are trillions of public dollars that have been spent without knowing how. These are legitimate questions that an auditor is required to ask. But received no reply. A fraudulent system, even in the electoral system, makes the nation more vulnerable. If you add to this the astronomical figures of the derivatives market, you get an explosive mixture that is ready to pop in our faces soon enough ”.
These are the words of Professor Mark Skidmore: university professor and public finance expert. A person who knows how to handle numbers. He revealed a shocking reality made up of astronomical figures that are ready to explode, causing widespread upheaval. He also suggested that we prepare for the worst by buying gold and tangible assets, and try to avoid being too exposed financially, to the negative events that lie ahead.
Our motto remains valid:
HOPE FOR THE BEST, BUT BE READY FOR THE WORST.
