Federal Deficit Increased 30% in 2012

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


That’s counting unfunded Social Security and Medicare liabilities and it shows just how big the Obama DebtHole is becoming.

John Williams, writing at ShadowStats.com, used the Treasury Department’s latest financial statements and calculates the true 2012 federal deficit, which includes the net present value of unfunded liabilities like Social Security and Medicare) at: $6.9 trillion.

In 2011, using GAAP accounting, the federal deficit was: $5.0 trillion. Which means the annual deficit grew at a rate of nearly 30 percent in one year.

And the hole is only getting bigger because we’re running out of productive workers. While the government class is increasing and we have large numbers of immigrants who mainly work low paying or government jobs, we don’t have much of a private sector left. And the private sector is being cannibalized by the government class.

In 1945, there were 42 workers for every retiree receiving Social Security benefits. Today, that number has fallen to 2.5 workers, and if you eliminate all government workers, that leaves only 1.6 private sector workers for every retiree receiving Social Security benefits.

Government pensions in states like California with a huge government and welfare class will fall first. Then everything else goes.

Obama knows quite well that he’s spending money that can never be repaid. That’s why he’s spending the money. Because it’s his last chance to spend it.

The guy who knows that the shipwrecked boat is in the middle of the Atlantic Ocean is going to eat up all the rations because he knows that there’s no rescue coming so he might as well pig out and position himself to survive as long as he can.

  • http://www.adinakutnicki.com AdinaK

    Yes, the Radical-in-Chief's economic wrecking ball, as he deconstructs the U.S. into a basket case, to no longer be the hyper power he despises – http://adinakutnicki.com/2012/08/07/barack-hussei

    By the bye, he is a busy boy, selling off American assets to repay Chinese debt…to be continued….

    Adina Kutnicki, Israel – http://adinakutnicki.com/about/

  • Johnconrad

    And leaving American citizens to die in hellholes like Benghazi and Algeria. And, we're naive enough to think he would use American power to help Americans.

    Just one of many nations.

  • Arlie

    He was "sworn" in again. Another day, another lie, more treason against the Constitution and more sedition and theft. John Roberts and the Supreme Court have one more chance to redeem us. Feb 15 they will decide if Noonan et al v Bowen may proceed. http://www.westernjournalism.com/breaking-news-on-the-ob...

    If there is any question where he's taking us and how fast it can happen – this video is instructive: http://www.youtube.com/watch?v=nVmKT43j4Tc&feature=p...

    I just watched this today…pass it on please and WAKE UP ANYONE WHO WILL before it gets creepy.

  • JacksonPearson

    IMO, all of Obama's thievery and getting away with, lies directly at the feet of Congress. Why?…Because there's no restraint, or monetary accountability, from either Congress, or the Executive branches of government. The debt clock, unrelentingly keeps ticking.

    Constitutionally, the enumerated powers to appropriate funding belongs to Congress, and not to the Executive Branch of government. Congress controls the purse strings, however, have allowed for an un-vetted, and in my opine, illegal president to uncontrollably grab, wildly spend, and redistribute the nation's treasury with impunity. Indeed, unprecedented times.