Someone should file fraud charges against Congress

If any company kept its books the way the federal government does, Eric Holder would drag it into federal court on charges of fraud.

In an interview with The Wall Street Journal money manager Stanley Druckenmiller points out that the $17 billion federal debt figure we hear everyday is a myth.

Gary Varvel cartoon

“If you borrow money from an individual with the agreement to pay them back in benefit payments in Social Security and Medicare after the age of 65, in their brilliance the United States accounting experts call that revenues. …” Druckenmiller said. “But in any corporation in America — other than maybe Enron — if you borrow money from someone with the agreement to pay it back in the future, that’s called a debt.”

He calculates the nation’s unfunded liabilities at $205 trillion, though the national debt clock, which apparently uses a shorter window, put the figure at $126 trillion. GDP is only $15.9 trillion, so the “debt” is 107 percent already.

Of course, the U.S. can always renege on its promises to future retirees. That is looking more and more like the only option.

It is a Ponzi scheme.