BOMBSHELL - National Debt is Really $211 TRILLION

Discussion in 'International Current News & Events' started by IrritatedWithUS, Aug 8, 2011.

  1. IrritatedWithUS

    IrritatedWithUS Well-Known Member

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    Heard this on the radio, found it on the NPR site.


    August 6, 2011

    (NRP)
    - When Standard & Poor's reduced the nation's credit rating from AAA to AA-plus, the United States suffered the first downgrade to its credit rating ever. S&P took this action despite the plan Congress passed this past week to raise the debt limit.

    The downgrade, S&P said, "reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."

    It's those medium- and long-term debt problems that also worry economics professor Laurence J. Kotlikoff, who served as a senior economist on President Reagan's Council of Economic Advisers. He says the national debt, which the U.S. Treasury has accounted at about $14 trillion, is just the tip of the iceberg.

    "We have all these unofficial debts that are massive compared to the official debt," Kotlikoff tells David Greene, guest host of weekends on All Things Considered. "We're focused just on the official debt, so we're trying to balance the wrong books."

    Kotlikoff explains that America's "unofficial" payment obligations — like Social Security, Medicare and Medicaid benefits — jack up the debt figure substantially.

    Laurence J. Kotlikoff served as a senior economist on President Ronald Reagan's Council of Economic Advisers and is a professor of economics at Boston University.

    "If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap," he says. "That's our true indebtedness."

    We don't hear more about this enormous number, Kotlikoff says, because politicians have chosen their language carefully to keep most of the problem off the books.

    "Why are these guys thinking about balancing the budget?" he says. "They should try and think about our long-term fiscal problems."

    According to Kotlikoff, one of the biggest fiscal problems Congress should focus on is America's obligation to make Social Security payments to future generations of the elderly.

    "We've got 78 million baby boomers who are poised to collect, in about 15 to 20 years, about $40,000 per person. Multiply 78 million by $40,000 — you're talking about more than $3 trillion a year just to give to a portion of the population," he says. "That's an enormous bill that's overhanging our heads, and Congress isn't focused on it."

    "We've consistently done too little too late, looked too short-term, said the future would take care of itself, we'll deal with that tomorrow," he says. "Well, guess what? You can't keep putting off these problems."

    To eliminate the fiscal gap, Kotlikoff says, the U.S. would have to have tax increases and spending reductions far beyond what's being negotiated right now in Washington.

    "What you have to do is either immediately and permanently raise taxes by about two-thirds, or immediately and permanently cut every dollar of spending by 40 percent forever. The [Congressional Budget Office's] numbers say we have an absolutely enormous problem facing us."
     
  2. partdeux

    partdeux Senior Member

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    That number is about 2x higher than any prior number I've seen...

    BUT,whether it's 100T or 211T it is still a really really really big number.

    For some reason, most people (including our elected officials) have trouble understanding the implications of the system they have created. I love Chris Martenson - Information on the global economy, environment, and our energy challenges. Real estate, oil, community, homes, money. - Chris Martenson, ChrisMartenson.com and his crash course video's on the exponential situation we are into today.
     
    Last edited by a moderator: Aug 8, 2011

  3. Meerkat

    Meerkat Seeking The Truth

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    The leaders know what they are doing,sure a few of them are in denial but deep down they know.

    The only ones who stop the coming doom are we the people.
    They laugh at our phone calls and emails.We need to bring the message to them in our local town halls and Washinton DC that we will not take it anymore.
    They have a huge military and many are not Americans,so it has to be peaceful,we are too outnumbered for a violent confrontation with these traitors.
    To hell with the Alamo"Remember Waco"!Tanks and flame trowers on US citizens.
     
  4. IrritatedWithUS

    IrritatedWithUS Well-Known Member

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    I often think "with the thugs in head to-toe-bullet proof gear shooting at crowds of citizens like they do, what would stop them?" then I saw what happened in Greece. The citizens would throw Molotov cocktails at them.
    It would take to long for the police/guards to take off everything so they'd
    burn to death. Something to think about...
     
  5. Immolatus

    Immolatus Just getting started. Always.

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    Thats also at least twice any number Ive seen, but 100T, 200T, doesnt really matter. Either way its not gettin paid.
     
  6. Meerkat

    Meerkat Seeking The Truth

    7,938
    998

    No we can't win with violence.But we could win with numbers if we ever got together we could let them know the next time we may not be so nice.
    This nation does'nt belong to just the 550 or so who rule.It belongs to us.
    Long as they know we fear them more than we love our children,they will only get worse if thats possible.