U.S. Is Bankrupt and We Don't Even Know

michaelr

Former Staff
Dec 2006
89,668
6,642
FEMA Region 10
#1
U.S. Is Bankrupt and We Don't Even Know

A couple of truths, and a few lies in this article. First he goes on to say that more taxation and less spending wont help, true...then he calls for doubling the tax and preform austerity measures that would make Greece and the Blast Zone seem fun.

‘Unofficial’ Liabilities

Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt. This gargantuan discrepancy between our “official” debt and our actual net indebtedness isn’t surprising. It reflects what economists call the labeling problem. Congress has been very careful over the years to label most of its liabilities “unofficial” to keep them off the books and far in the future.
‘Unofficial’ Liabilities....we paid into these funds, your parents did, and most of your grandparents did, but forgetaboutit, you ain't gettin it.

Se are beyond the brink of disaster, Geithner's lies have become clear, hell Obama's own economy team jumped ship, and people with wealth are fleeing.

Have fun with the article, I am sure that some of you will claim all will be fine, those are the folks that will get hurt worse than the realists.
 
Aug 2010
1,016
19
West Egg
#2
Unbelievable; the whole 'government-induced prosperity' has been killing the nation. The expansion of credit to those who shouldn't have it, expansion of homes who can't afford the payments; and so on. Not to mention the trade deficit because of draconian limits on who we can export to and the regulations on mid-size manufacturers.

$202tn is a bit of an overstatement; that, I believe assumed all liabilities and so on; it's 4x the world GDP, after all. Though, even looking a the standard $12tn; it's not going to get paid anytime soon.
 

michaelr

Former Staff
Dec 2006
89,668
6,642
FEMA Region 10
#3
Unbelievable; the whole 'government-induced prosperity' has been killing the nation. The expansion of credit to those who shouldn't have it, expansion of homes who can't afford the payments; and so on. Not to mention the trade deficit because of draconian limits on who we can export to and the regulations on mid-size manufacturers.

$202tn is a bit of an overstatement; that, I believe assumed all liabilities and so on; it's 4x the world GDP, after all. Though, even looking a the standard $12tn; it's not going to get paid anytime soon.
One would hope that 202 trillion is an overstatement, and it may be, but not by much. I think "health care" was added, but this guy is pretty good at what he does, and he took the time to add in the bailouts. The only problem I have with that is that after 26 trillion, we stopped getting numbers. Also the debt is high as hell, but there is interest on that debt, and to my knowledge, that has never been paid.
 
Aug 2010
1,016
19
West Egg
#4
Also the debt is high as hell, but there is interest on that debt, and to my knowledge, that has never been paid.
For the national debt; the interest is paid off yearly; by 2050, it'll be one of the biggest single-line item besides entitlements: debt service.

 

michaelr

Former Staff
Dec 2006
89,668
6,642
FEMA Region 10
#5
Lets not overlook that the provided chart is from 2007, and most likely compiled from data from 2005~2006. There have been many changes since then, and none for the good.