A National Debt Of $14 Trillion? Try $211 Trillion

A National Debt Of $14 Trillion? Try $211 Trillion

It's those medium- and long-term debt problems that also worry economics professor Laurence J. Kotlikoff, who served as a senior economist on President Reagan's Council of Economic Advisers. He says the national debt, which the U.S. Treasury has accounted at about $14 trillion, is just the tip of the iceberg.

"We have all these unofficial debts that are massive compared to the official debt," Kotlikoff tells David Greene, guest host of weekends on All Things Considered. "We're focused just on the official debt, so we're trying to balance the wrong books."

Kotlikoff explains that America's "unofficial" payment obligations — like Social Security, Medicare and Medicaid benefits — jack up the debt figure substantially.

"If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap," he says. "That's our true indebtedness."

"We've got 78 million baby boomers who are poised to collect, in about 15 to 20 years, about $40,000 per person. Multiply 78 million by $40,000 — you're talking about more than $3 trillion a year just to give to a portion of the population," he says. "That's an enormous bill that's overhanging our heads, and Congress isn't focused on it."

Good luck paying that... the ONLY WAY it's gonna be paid : PRINTING... not even raising taxes to the highest levels in history will do it. So...forget paper currency, it will die...

All that was promised WILL NOT BE PAID... either by defaulting on the benefits/promises... (not paying them) or ``paying them`` by PRINTING... which in reality doesn't pay anything.

And then just imagine the social instability/riots/conflicts it will create.... the whole thing is a big set up for total chaos.

reply to post by Vitchilo


Well what can I say? Can you lend me a few bucks?

amazing isn't it..

all this time we thought we were winning, but it actually cost us everything...

we'll all be begging for the amero by the time this is over..

what were the chances of that?

All we can do is laugh.

I think Spielberg has enough inspiration for a new movie.

Hmm... Now I can see why China and many other nations are so pissed. It was not just one elephant in the room but a whole group of them that have trashed the house. Well at least a clearer picture of the problem is coming out, expect more transparency to the economy coming as the damaged is assessed and these elephants get rounded up. If the public lets this go with out getting sorted out then expect a stamped from these rogue elephants.

Originally posted by Vitchilo

And then just imagine the social instability/riots/conflicts it will create.... the whole thing is a big set up for total chaos.

Agreed. To act like everything would be okay if we could just figure out how to pay or reduce the artificial debt number is ridiculous. This is going to get very, very ugly before a tenable solution begins to emerge. A solution that has been the real plan all along. This is the endgame, and the fascists aren't going to be taking any chances. Things will HAVE to be so bad that we submit, and the 'total chaos' you speak of is the only way to ensure that.

The dollar is some fairy tale.

What was a million in 1931 is a trillion in 2011.

It means nothing. The value is not in the figure. It is in the good or service traded.

The global bankers can choke on their trillions. We should reclaim our monetary system and tell the real terrorists to eat crow.

For such a strong nation, we sure are some fairy tale believing va-jay-jays

reply to post by Vitchilo


S&F

but really this is old news.

the banksters and their usurious greed are responsible, for the destruction of every single civilization since Mesopotamia , this is simply the west's turn to collapse.

the 64 trillion hidden behind CAFR's is not gonna pay that off either, i guess.

hopefully the next system will be designed to drive banksters and other types of psychopath to suicide before they are 12.

reply to post by Alxandro


While I'm not quick to place sole blame on Obama for this whole mess--to put it frankly, I spread the blame all about Washington for quite some time now--that picture was hysterical.

Though this is old news to anyone with a financial background, it is of the upmost importance.

The US government uses cash accounting, simply money in money out.

But they oddly require all public companies to use accrual accounting in an effort for shareholders gain a better understanding of the fiscal situation of said company. Meaning not only is cash accounted for, but future obligations as well.

In short, we are in more debt than anyone even knows.

Though I truly believe our saving grace is we are the best smelling turd in the pile.

as bad as people may think it is... its a lot worse...


yet they keep printing... keep raising the debt limit... keep on supporting the wrs and the bases around the world...

keep on supporting Americans.... keep on supporting fiscal irresponsibility... look where it will lead us... look where it had led us... morons... ffs, STOP SPENDING LIKE A DAMN CREDIT JUNKIE!!!

I know its messed up for me and my nieces.... but for goodness sakes... stop messing it up for my grandchildren and great grand children...

doesn't the future society have a say in this?

reply to post by Alxandro


I'm not surprised.

Deny Ignorance? Why, you do just the opposite with your silly Anti-Obama images/diatribes.

Only an ignorant fool would overlook the fact that this debt "crisis" goes back way before Obama.