Earlier this month, the United States government released its annual financial report for the year 2017.
This is something the government does every year, similar to how large companies like Apple, or Warren Buffett’s Berkshire Hathaway, publish their own annual reports.
Unlike Berkshire and Apple, though, whose financial reports typically show strong, positive results, the US government’s financial statements are a complete horror show.
Right at the beginning of the report, the government explains that its “net loss” for the year was an unbelievable $1.2 TRILLION.
Read that number again. $1.2 trillion. That’s simply staggering.
It’s larger than the size of the entire Australian economy… and constitutes a loss of more than $2.2 million per minute.
This is not a conspiracy theory or irrational fantasy. This is the Treasury Secretary of the United States of America publicly announcing that the federal government lost $1.2 trillion on page ‘i’ of its annual financial report.
What’s even more alarming is that 2017 was a great year. There was no recession. No epic financial crisis.
In his introductory letter, in fact, the Treasury Secretary proudly stated that “[t]he country enjoyed a pick-up in [economic] growth in 2017. Unemployment is at its lowest level since February 2001, consumer and business confidence are at two-decade highs, and inflation is low and stable.”
In short, everything was awesome in 2017. Even the government’s overall revenue was a record high $3.3 trillion for the year. Yet despite all that good news… despite all those positive developments and record revenue… they STILL managed to lose $1.2 trillion.
If the government loses $1.2 trillion in a GOOD year, how much do you think they’ll lose in a BAD year? How much will they lose when they actually do have a recession to fight? Or another war. Or a major banking crisis?