Proof The Bible Is True

“The article contains a large dose of reality concerning the true state of US debt, inflation and more.”  Admin

US bonds are risky due to America’s actual debt of $210 trillion:

Laurence Kotlikoff: U S Treasury Bonds One of the Riskiest Securities in the World, Financial System Will Collapse Just a Matter of When

Where can you get a safe investment? Boston University Economics Professor Laurence Kotlikoff says, forget U.S. Treasury bonds. “I think they are one of the riskiest securities in the world because interest rates are likely to go up. I think the Fed is going to have to keep printing money because Congress isn’t paying our bills, and that’s going to lead to inflation eventually. So, I think long term Treasuries are extremely risky and they can drop 5%, 10% or 20% overnight. That could put my bank that was viewed as perfectly safe today–out of business. So, we could have inflation take off, and interest rates go up. We could have banks fail, and that could lead to runs on other banks. That’s the scenario,” says Professor Kotlikoff.

US deficts will be faked, as we usually do, so that the need for selling Treasuries by the US will be reduced. So lower supply will entail lower prices and lower yields to keep the US ponzi going:

“I told them the real (2014) deficit was $5 trillion, not the $500 billion or $300 billion or whatever it was announced to be this year. Almost all the liabilities of the government are being kept off the books by bogus accounting. .

“If you take all the expenditures that the government is expected to make, as projected by the Congressional Budget Office (CBO), all the spending on defense, repairing the roads, paying for the Supreme Court Justices’ salaries, Social Security, Medicare, Medicaid, welfare, everything and take all those expenditures into the future . . . and compare that to all the taxes that are projected to come in, and the difference is $210 trillion. That’s the fiscal gap. That’s our true debt.”

Read More: Economic Disinformation Keeps Financial Markets Up… US Bonds Are Risky, Unemployment, Deficits Numbers Are Fake, Inflation Is Understated