US Federal Government: A Gluttonous Corporation

According to Bankruptcydata, the US had nearly 3800 filings in 2020. The largest sectors were restaurants and construction with oil & gas coming in 5th.  

Between 2019 and 2020 the balance sheet disclosures for the Federal government increased their asset holding by nearly $2 trillion.   In addition, the feds sold an additional $4 trillion in Treasuries.  Between 2009 and 2012, Treasury debt held by the public doubled. By 2020, that debt had doubled again.

The US government does not include oil and gas reserve value or mineral rights to their balance sheet.   In 2013, an article by Time magazine declared that the oil & gas reserves alone were worth $128 trillion.   As the feds move away from oil and move into solar, that intrinsic value would then be $-0-. Not a small hit. Not something they might share.

Since 1995, Federal Reserve assets have increased by 900%.

In 2008, the US Treasury Department created the Supplementary Financing Program whereby the Treasury issues short-term debt and places the proceeds in the Supplementary Financing Account at the Federal Reserve – a nongovernmental organization that is now managing government funds.   So the US government is playing the second, third set of books scenario much like the Mafia while depositing funds into various shells.  It is basically a Ponzi schematic of cooked books.

While not the first government bailout, in the last century 1907 was the first bailout with a current value of $1.9 billion. The Great Depression brought the next bailout which cost taxpayers $440 billion in 2019 dollars. The 1960’s saw the $1.5 billion Lockheed bailout, the 1970’s was the NYC bailout worth $10 billion, 1980 we paid $5.1 billion to bailout Chrysler and between 1986 to 1995 we paid out over $520 billion to cover the S&L crisis.

The 2008 crisis bailout cost $700 billion in toxic assets and $250 billion in bank bailouts. Fannie Mae and Freddie Mac (are these gender racist) were sitting on $4.9 trillion in securities which the federal government seized by paying roughly $200 billion (effectively to themselves) and preferred stock.   The Federal Reserve and Treasury bought 92% of AIG in the bailout while giving them a jump start of $141.8 billion in cash from taxpayers.

Where are these assets?

Given the Federal Reserve is NOT a government organization and the US Treasury is, it is unclear how they could collaborate in this transaction.

So far, the CoVid malfeasance has cost $4 trillion.   The vast majority of the funds were used to buy up corporate debt.   You understand in accounting and legal terms, when you own the debt of a company, it is fairly likely you are the intrinsic owner of the company.   Meaning the federal government owns the debt of multinational corporations, and becomes the priority in payment of interest before dividends to shareholders.

These bailout buyouts meant shares of stocks initially tanked, and the big buyers bought the lows.   In the US it is estimated that 10% of Americans own 84% of the stock market.   Which is why CoVid made the rich richer and the poor poorer. All while American taxpayers fund that wealth.

It is and always has been a shell game gimmick.   Only with CoVid the ante went through the roof and the skyline! Purposefully.   Because the Game For Money – is the Game for Control.

Who is left when the music stops and there is one less chair?

Then there are the accounting gimmicks employed by the federal government that are nonsensical at best.   The government owns 900,000 buildings and 28% of all US land.   All exempt from property taxes.   Upwards of 10% of all buildings are vacant and 40% are under utilized.   Example: A lot and building owned by the Carolina County Airport Authority Board that is leased for 20 years to Boeing Co. for use as a commercial aircraft maintenance shop. The building and lot are still exempt from all property taxes.

Buildings are waylaid and vacant. Crumbling.   The land is valuable; the building is a tear down. Can the government sell?   Answer – maybe, after jumping thru GSA hoops and bureaucratic garbage, a sale might manifest itself in the span of years. Meanwhile it incurs no tax revenue and requires $1.6 million in annual maintenance.

As a finance person, the logic is so corrupt and negligent it begins to appear somewhat purposeful.   The creation of large swathes of wasted spending has one outcome, further depletion of taxpayer wealth. In a corporate situation bankruptcy and reorganization would occur while selling assets and layoff of employees.   In the Federal government the crisis would be met with the formation of a committee, more salaries, hefty budget requests, new offices to evaluate selling the land and building. Milked for a decade.

G7 reveals the next crisis has been already been instituted and created to break the back of the global economies “Climate Crisis”.   While funding for the Crisis will be in the trillions – directed nearly exclusively to initiatives in Africa, at the same time, the oil and gas market is expected to grow by $1.2 trillion between 2020 and 2021 with annual compound growth at 25.5%.   DESPITE the media and government declaring the end of oil & gas.   WHY?   Another elite bubble market wherein crude prices have doubled since the November 2020 election and will continue to do so until the elite have milked the last vestige of wealth from the last vestige of commoners. As in – you and I.

Nothing goes to waste. Not even a fake market shift into a void of climate.

Exactly how much corporate stock and/or corporate shares does the Federal Government hold?  It is like the Vatican – no one really knows!

In ‘the olden’ days, the shift of corporate ownership would be accomplished through nationalization of private companies.   But today, sophisticated accounting deviances allow for distractions wherein that ownership is shifted via different conduits.   And the public is mediatized to be completely oblivious.

What we witness now is the set in motion economic disaster employed by Jimmy Carter, the whiplash of racism employed by Obama, the corrupt Mafioso approach of daddy Bush, the anything goes morality of Clinton, all under the thumb of FDR as he boldly and effectively set in motion the ever expanding gluttonous government.

The Federal Government now employs about as many people as Walmart – only Walmart returns a substantial net profit!