Is the United States Bankrupt?

FEDERAL RESERVE BANK OF ST. LOUIS REVIEW ^ | July 1, 2006 | Laurence J. Kotlikoff

[Paul Ross]

For those with some interest in the technical analytical approach to the issues which are too often brushed away with hoary anecdotes.

As for the Government already maybe trying to inflate its way out of this mess of its own creation...

[leadpenny]

Is the Pope Catholic?

[Egon]

Ping for later reading.

[Toddsterpatriot]

A third alternative, were it feasible, would be to immediately and permanently cut all federal discretionary spending by 143 percent.

I'd settle for cutting it 100%.

[palmer]

The answers are terrifying. One solution is...

Even believing the bad numbers, a combination of solutions, including the one they didn't mention, economic growth, will get us out of this mess. Another possibility is producing cheap power from semconductors or nanotechnology (e.g. solar, depolymerization, etc)

[Red Badger]

One way to wrap one’s head around $65.9 trillion? Even Algore's head ain't that big!.......

[Dallas59]

How much is gold an ounce?

[palmer]

I'd go for the 143% and ask for the bridges to nowhere nowhere money back.

[isthisnickcool]

Hmm, time for a road trip with a few cases of beer which won't help the problem but it would make us feel better. Or, maybe we need to just have a big garage sale? Maybe put the capital building and some other junk we don't need on ebay?

[dashing doofus]

You'd eliminate our military, Coast Guard, any semblance of border control, default on our bonds, cut off Social Security, Medicaid, transportation funding, etc?

Wow. Radical!

I think we should get the so-called "nondiscretionary spending under control." Our republican congress and republican president have failed in this regard. Naturally, the Dems would make it much worse, and try to solve all these problems with tax increases......

[Red Badger]

As for the Government already maybe trying to inflate its way out of this mess of its own creation.......

The ol' tried and true method. It works everytime it's tried......Remember WIN! ????.....

[Paul Ross]

Even believing the bad numbers, a combination of solutions, including the one they didn't mention, economic growth, will get us out of this mess. Another possibility is producing cheap power from semconductors or nanotechnology (e.g. solar, depolymerization, etc)

All those possibiliities are not ignored, and are indeed evaluated. Check into the guts of the paper, note the discussion pertaining to technology, productivity growth, and "capital deepening."

[RightWhale]

countries can go broke

The populace can become impoverished, but talking about states as if they were large, generalized versions of individuals is reasoning by false analogy. Everybody should buy gold so when the state rounds up all the wealth of the populace they will find it all easier and more conveniently.

[Red Badger]

1 ounce of gold = 1 ounce of gold.........A=A.......

[Restorer]

Maybe.

I've been reading articles reaching very similar conclusions for about 40 years.

The economy hasn't collapsed yet. (Which doesn't necessarily mean it won't tomorrow.)

However, the sky is falling types do not have a great record of successful prediction.

[Paul Ross]

Everybody should buy gold so when the state rounds up all the wealth of the populace they will find it all easier and more conveniently.

Sigh. The Beer Trip is beginning to sound better all the time, eh?

[Toddsterpatriot]

default on our bonds, cut off Social Security, Medicaid

Paying interest isn't discretionary. Neither is Social Security. Is Medicaid? I didn't think so.

You're right, I wouldn't want to eliminate the military.

[expatpat]

Ping. You have an ally here.

[OB1kNOb]

The Gokhale and Smetters measure of the fiscal gap is a stunning $65.9 trillion! This figure is more than five times U.S. GDP and almost twice the size of national wealth.

It appears the answer to the question is "yes", we just haven't declared it yet.

[mc6809e]

Republicans will never raise taxes and Republicans will never cut spending.

There is only of realistic scenario: when the crunch comes, the Republicans will be kicked out on their butts and we'll have higher taxes imposed by Democrats.

Oh, and you can bet those Democrats will go much further than just raising taxes. We'll have another damn FDR.

I suppose I could hope that Republicans might change their attitude, but as far as I can tell, the only thing most of them care about is being pro-life.

Heck. You can even have taxpayers build a 200 million dollar bridge to nowhere in Alaska, but that's A-Okay. The Senator from Alaska is pro-life, after all.