Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: yoe
The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.

Using GAAP (generally accepted accounting principles) instead of phony premises, counting all government debt and not just the Federal balance (i.e. states and local governments), counting the GSE guarantees (government sponsored entities such as Fanny, Freddie, Sally, FDIC, FHA, etc.) and unwinding some of the Fed's policies, yields the staggering total of $100 trillion to $250 trillion depending on who is preparing the estimate.

There is no way this country can ever amortize that total with taxes ... no matter how much the economy eventually recovers!

Sometime, pick up an economic history text and read what happens to countries who default on their debt obligations either through hyperinflation or through repudiation. It's not pretty!

5 posted on 01/10/2012 12:50:33 PM PST by Zakeet (If Obama had half a brain, his butt would be lopsided)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Zakeet

According to the GAO, the accrual deficit is $4.2T, far surpassing the $1.3T cash flow deficit. The accrual deficit would be substantially larger with more realistic assumptions in Obamacare. I am not even sure that an accrual deficit makes sense because the federal government has no savings mechanism. Additional revenues would be spent, not saved to prepare for future commitments. It is probably more meaningful to project future levels of government spending and borrowing. Both will substantially accelerate in the coming decades. At the very beginning of the baby boom generation, we have unthinkable deficits. I do not see any path to fiscal sanity as conservatives will never have strong control of government.

The consequences of unsustainable debt and spending are frightening. Contrary to conventional wisdom, this problem is not something that the younger generation will endure. It is a problem that every living generation will endure. The economic collapse will impact seniors the most because they have much less ability to manuever around the difficulties.


8 posted on 01/10/2012 1:03:03 PM PST by businessprofessor
[ Post Reply | Private Reply | To 5 | View Replies ]

To: Zakeet
Thanks for your input....America needs to reinvent Congress; how we elect these people; what they need to be before ever entering an election race; but most important of all...Congress must adhere to TERM LIMITS and have a job they keep in their home states & one they return to so many days a month during their service time in Washington, D.C. Meanwhile closing the Energy, Education, and half a dozen other useless and costly Bureaucracies and limiting the use of AFOne and Two for business only would be a step in the right direction.
20 posted on 01/10/2012 5:20:09 PM PST by yoe
[ Post Reply | Private Reply | To 5 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson