Most gold and silver investors are drawn to the metals because of concerns about the dollar. But, do most gold and silver investors know just how bad the financial situation really is for the United States government? Probably not, says David Walker, the Comptroller General of the United States and head of the General Accountability Office, commonly called the GAO.

The GAO has the responsibility for auditing and investigating “all matters relating to the receipt, disbursement, and application of” federal funds. The GAO has the authority to audit any government agency and the responsibility to report those findings to Congress. Because the Comptroller General is appointed for fifteen years, he cannot be replaced by either incoming presidents or by Congress if it does not like his reports.

Despite the GAO’s awesome responsibility, few Americans even know that the agency exists. And, unfortunately, most that do know about the GAO probably treat it with the same disrespect that they hold for other government agencies. That would be a mistake for the GAO is the one creditable federal agency.

So, how bad is the fiscal state of affairs for the federal government? David Walker says that “the most serious threat to United States is not someone hiding in a cave in Afghanistan or Pakistan but is our own fiscal irresponsibility.”

Here is a link to a 10-minute 41-second YouTube video about David Walker’s efforts to inform the American people about the precarious financial state of affairs of the federal government. The last four minutes show Congressman Ron Paul lecturing Fed Head Ben Bernanke about the immorality of the Federal Reserve. (Ron Paul is probably the only member of Congress who recognizes that the Fed is truly an immoral institution.)

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As it is when a country is at war, other important matters go unnoticed. This is certainly true when it comes our federal government’s finances.

Congress just passed a $2.9 trillion dollar budget plan for the fiscal year starting October 1, 2007. The bill is a blueprint for Congress to follow this year as it writes tax and spending legislation for next year. And, the Democrats put their stamp on the federal budget.

The measure would increase spending for favorite Democratic programs, such as education, community development grants and veterans’ medical care. However, the Republicans faulted the plan for failing to allow for looming shortfalls in benefits programs such as Medicare, Social Security and Medicaid.

Spending on these senior citizen programs increases automatically with inflation and as new beneficiaries become eligible. With the first of the baby boomers set to begin retiring next year, the rolls of recipients will climb rapidly. Some studies show Medicare, Social Security and Medicaid payouts bankrupting the federal government by 2030.

Although the plan calls for a small surplus by 2012 although, it would increase deficit over the next few years. But, don’t make any bets that a surplus will be achieved in 2012. Projected surpluses have a way of disappearing as forecasts give way to reality.

Besides, when it comes to the federal deficit, the books are cooked.

The best way to see what the federal government is actually doing is to monitor the official debt. On January 1, 2000, the official federal debt stood at $5.78 trillion; today it is about $8.71 trillion, nearly a 51% increase in less than eight years, with no end in sight to increases in federal spending.

And, have you noticed that the financial state of affairs of the federal government is NOT an issue in the embryonic presidential campaign? How can the problem be addressed if it is not even recongized by the presidential candidates?