$17 Trillion U.S. National Debt? Try $211 Trillion!

Zero Hedge ^ | September 23, 2013

[Zakeet]

I understand all that, but over what TIME PERIOD? SS is not due to close out so how can anyone claim a total value for it since it is perpetual?

The estimates that I have seen assume an arbitrary cutoff - say, at 2050. That said, it doesn't much matter what they do since the future value beyond about 30 years is so small and the total liability is so absurdly large.

[Zakeet]

I prefer default to hyper-inflation.

Inflation / hyperinflation is a form of default.

Debt repudiation (the technical term for debt default) almost always leads to hyperinflation. Reinhart and Rogoff argue that external debt repudiation (to foreigners only) causes chronic (banana republic) hyperinflation while internal debt repudiation (to citizens as well) causes acute (Weimar Republic or Zimbabwe) hyperinflation. Either way, the outcome is tragic.

This will mean the end of SS. Families will survive in multi-generational homes. The clan will be the means of survival, and the best defense against the government.

Governments typically collapse in these circumstances, and the clan becomes the best defense against total anarchy. Therefore, in a broad sense, you are right.

[CodeToad]

The one future budget number I find reasonable, and scary, is the expected federal income at current tax rates versus the future estimated expenses. Those numbers are all over the place but they suggest we won’t be viable in a few short years. Our rate of freebie expense growth is outpacing our income growth by a large margin.

[Zakeet]

The one future budget number I find reasonable, and scary, is the expected federal income at current tax rates versus the future estimated expenses. Those numbers are all over the place but they suggest we won’t be viable in a few short years. Our rate of freebie expense growth is outpacing our income growth by a large margin.

Current GAAP calculations show annual deficits running in the range of $6-7 trillion.

Most of the people I respect believe we could face a systemic failure of the financial system as soon as next year, or possibly even later this year.

[Jack Hydrazine]

The coming crash will destroy every nation.

[roadcat]

The coming crash will destroy every nation.

You're too coy and reluctant to spell it out. Mass starvation and anarchy will prevail. There, now that should wake people up.

[Jack Hydrazine]

What’s $211 trillion between friends?

[CodeToad]

Even at our 5 year average of over $1 T/yr is unsustainable. An average number is that we borrow an additional 40 cents for every 60 cents spent.

[Toddsterpatriot]

Every debt is owned by someone.

[NY Attitude]

Ahhh yes, The Federal Reserve at work.