Yes to most of what you're saying, but
The US government knows everything everyone is doing
No. That's what they want you to think. It does know a lot more than we think, but nowhere near everything. It likely does know where your phones (aka you if you're with it) are at all times, despite having GPS on or off. It also likely collects everything or most things you do online unless you're really careful with Tor and what not, even then it's not clear.