It is loaded with stunning graphs and charts on Social Security, Medicare, Medicaid, TARP Bailouts, Fannie Mae and Freddie Mac, military spending, tax revenues, and various projections. Here are a few images, but please give the document a closer look when you have a few moments.
Click on any chart to see a sharper image.
Cash Flow
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir88E2OSr6VYXgsn9cy9YITvBkFruiPShm0X-kVLwDayHvcNnxbq0RSSEWvHyQJpdr6T_nAZtIwsHaTuo8Bs_CPuXSmdUTqX3iH-szWGLuSWiQpY3N9p8frHlPqW92nzVaKjUGiN3mFwM/s400/USA+INC+-+Cash+Flow.png)
Expenses at a Glance
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_F4-Tkavk2Uvx06E0Nlm19dTOBFp04CQ5C3fvOQpokDgcS6z4B4A_CWqXwPE6qBJHhjbXpUuryo62KTAI7ekrpzU7E5J8cHk9VxmhU33yyeapanRWC0EHC6T8TvL_ie6LG6RRutDIQE8/s400/USA+INC+-+Expenses+at+a+glance.png)
Unfunded Liabilities
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMxnP2-xiBP9sRqU-S6Ol8La4Saup0RLCHiw3Y8xs1yPHp5H8utY-XpL7paZ9sYUtqVCZZ4X4OcEtvEMZNoZ-gwLegGXSGbhWAA7msvJeVaHfKKAAuCmzjk7_lCMzNIBbVz0Wo1mVrDXQ/s400/USA+INC+-+unfunded+liabilities.png)
Federal Spending as Percent of GDP
Note this mess started with the creation of the Fed
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggMgm-GRTaClylJ0a6_fat4b5f525aXBYk-58ypGevibWYPpmo1PBhpDDf9jUsIWRfTMFd9m3TV-8Fh6FMgjcBmm3mIi9IC6stk8Ba_SGlu6iteDzgfR1MP8EleFtOyfu4Jv-8kwr2p6E/s400/usa+inc+-+federal+spending+percent+of+GDP.png)
Growth in Entitlement Spending
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhNwcwa96782eLpsz9GIvQRKBZAg56w-eMecR7l4NN7TYaUUYhtNryKIJh4dLeyoYR0oAi_Pd26Qg32eXqIMJrXxyg-lYk4wVSuEX8nxLgQ0xuKpSD_xXlXyziGbtoAB_NVQzDFS3l9f8/s400/usa+inc+-+growth+in+entitlement+spending.png)
Take a step back, and imagine what the founding fathers would think if they saw how our country�s finances have changed. From 1790 to 1930, government spending on average accounted for just 3% of American GDP. Today, government spending absorbs closer to 24% of GDP.
Spending + Interest vs. Revenues
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoVGjnkawVvNM2-R4yJMdrrRff2MMFy7YxyQb8ebseYP_DR6lntKDZZ-85adihP_wa1uB-tKBtyM2LbBvQbwTJJ4aLA1NYJ8H1dNbHe1_eyFBI5-NpLGVv_TlhIcMnvjzTYf8JSv7YBJ0/s400/usa+inc+-+spending+vs+revenue.png)
By 2025, entitlements plus net interest payments will absorb all � yes, all � of USA Inc.'s revenue, per CBO.
Less than 15 years from now, in other words, USA Inc. � based on current forecasts for revenue and expenses - would have nothing left over to spend on defense, education, infrastructure, and R&D, which today account for only 32% of USA Inc. spending, down from 69% forty years ago.
This critical juncture is getting ever closer. Just ten years ago, the CBO thought federal revenue would support entitlement spending and interest payments until 2060 � 35 years beyond its current projection.
To 25 Countries in Defense Spending
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-Az6dtbx1Eu22i6j7m3KKnAnIyMzt5ZhDxw9bvj8LaP9Dn_5yrXTYQJ3l2Edkg6xS1ZYaMR1zwnxWK7dSmuURTZd75gfLi2nlwihT8L7vCBqVlrqUyK0qY6-orNWcJvmZSzgWL2VzT-4/s400/usa+inc+-+defense+spending.png)
Entitlement Spending by Household
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOckPBenoBqRRvA2a1_fzGfYBFAmSoASYjLl6fK_sfAXp6MlPR864hBNmF678w2R4oEHyDL_jsJHRovjbCndFk7cOC-LrAlNor0djEt5IOK0eLlsON1BOfm2zGjaCaerotL8tfblRn68M/s400/usa+inc+-+entitlement+spending+by+household.png)
Medicaid Underfunding
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimPhXnHdqGpnK_ft7iR4PiFSQhxdhkmW2eDz8UhKx8FykkxXoDqTwNCVxAMiVH-7AIQ0T7GKGLVAzRxbs2BuFOUssTuop7lBklwjILwaoJbSuDoUwfBW008s1a-G-za6d6Td6CJpTEEcI/s400/usa+inc+-+medicaid+underfunding.png)
When Medicaid was created in 1965 to provide health insurance to low income Americans, 1 in 50 Americans received Medicaid, now 1 in 6 Americans receives Medicaid.
Healthcare Spending
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi14_P5jSxC4yrdlbFCAbyUcFEpEv-Si2v7oGu0OCZygBdFKTvXZGYO0NEJ0azWYWuIlGB64fNxXtnfXojHDEWxVXLTFZ9_tdhgVPn8011E_q7-NmL1BCatIFR636g793vqIwlFG5CBqN0/s400/usa+inc+-+healthcare+spending.png)
Social Security Workers vs. Retirees
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaLU4KTRFGvCsTs3eclbnz7D3ibF3zktiVW8p-pjMvn4-yInBpvyNotTOmaT-Y22oEPzqDYRacUAAanOMhlti8K9GzfS2SmNE3n_luAyFtMC5KFN1euh4GsT3IyemeX9ZiNnqwwibgN4Q/s400/USA+INC+-+social+security+workers.png)
Social Security Dependents
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj00HKqOXjt-giHYT8Envvetv0zYVzaIq3JN0aE_oxWlqlc4FKaiPn_DIxkblsHl6yvujCgOvc-oIoXqS0cxNHcRPVMMAQ4YwWgh5UgFx-vIXRagqqiTa08BYo7WlAkdOK1uEMqFINTRnQ/s400/USA+INC+-+social+security+workers2.png)
GSE, Fannie Mae, Freddie Mac Expansion
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuFYVXQxp-bPSTTChgUEfBGWSu_WZ4XEAyOO8VWLjCF1KRp3h4JFbkEacKx1JwGYFOSUG-vlHV3uwkOkRpE0xdW291MiF_s8inKca6ny0QUQchhRMhS9dO0cc3qMcMz45Znahh_QEiFXI/s400/USA+INC+-+GSE+Expansion.png)
If that is not a shocking state of affairs, what is? There are lot more charts and graphs in the PDF.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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