Skip to comments.The true national debt (How big is it really?)
Posted on 02/25/2013 6:29:56 AM PST by SeekAndFind
How big is the national debt?
Youd think this would be an easy question. Surely we know how much the government owes. Unfortunately, its not that simple. The true national debt could be triple the conventional estimate, anywhere from $11 trillion to $31 trillion by my reckoning. The differences mostly reflect explicit and implicit off-budget federal loan guarantees. In another economic downturn, these could result in large losses that would be brought on budget and worsen already huge deficits. Thats the danger.
My purpose is not to scare or sensationalize. Its simply to illuminate the problem. Broadly conceived, the national debt covers all debts for which the federal government assumes final responsibility. For politicians, the appeal of off-budget programs is that they allow the pleasure of spending without the pain of taxing. But they also create massive exposure for government.
Lets see why. Below are five estimates of the national debt. I compare each with our national income (gross domestic product), which is the economic base to service debts. In fiscal 2012, GDP was $15.5 trillion. Some economists say a debt ratio exceeding 90 percent slows economic growth. The United States already exceeds this threshold on four of my five measures.
(Excerpt) Read more at washingtonpost.com ...
Depends on the definition of ‘I$’..........
Sad, isn’t it, that I now guffaw when I hear “backed by the full faith and credit of the United States”.
As Gertrude Stein might say, “There is no “there” there”.
The usual drivel from the compost trying to minimize a disaster by saying "could be triple" and giving triple numbers when it should be saying "IS TENFOLD!" and giving numbers ten times the size.
Omitted here is mention of SS, mediscare and mediscaid, with additional unfunded liabilities reaching to upwards of $100 Trillions.
And, it’s even worse than what your correction suggests: this is only the Federal debt you’ve corrected from the liberals’ rosy estimates. Were the U.S. a unitary state, as many nations are (and the left wishes the U.S. were), there would also be all the indebtedness and unfunded pension obligations of all state and local governments to include in the national debt — and the fact that we still have the remains of the Founders’ federalist vision does not mean the economic impact of debts and unfunded pension obligations are any less simply because they were created by the legislatures of on of the several states or a municipality, rather than by Congress, so such inclusion is appropriate for a proper analysis of the state of our nation and our economy..
Sorry, I didn’t read carefully: you did include unfunded local and state obligations, so it’s only actually issued bonds from the several states that you might have missed — but that’s probably rounding error after what you correctly included.
How do we normal folks get some of that 85B being printed monthly?
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