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In a piece written for The Wall Street Journal Laffer points out that even our astounding $11.4 trillion national debt is a gross understatement. If you account for all unfunded liabilities – Medicare, military pensions, etc. – the total may be as much as $100 trillion.
At the same time we also face the challenge of runaway inflation of the money supply. Since the onset of this crisis the response from the Federal Reserve has been to pump hundreds of billions of dollars into the U.S. economy. According to Laffer’s calculations, the money supply has grown over 100 percent during the past year, meaning the value of each piece of that supply has been cut roughly in half
Originally posted by audas
reply to post by Quest
This is not entirely correct as these liabilities must be paid - further the assets of the US would not cover this as the combined value of the global stock markets is 60trillion, world GDP is only about 40 trillion......
Further the assets such as aircraft carriers are not OWNED ....
Here we stand more than a year into a grave economic crisis with a projected budget deficit of 13% of GDP.
With U.S. GDP at about $14 trillion
Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.
Richard W. Fisher assumed the office of president and CEO of the Federal Reserve Bank of Dallas on April 4, 2005. In this role, Fisher serves as a member of the Federal Open Market Committee, the Federal Reserve’s principal monetary policymaking group.