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America Will Soon Owe More Than Its Citizens Are Worth
Peter G. Peterson Foundation ^ | Dec. 15, '08 | David Walker

Posted on 12/15/2008 8:58:34 PM PST by T.L.Sink

The sum of America's debts and other financial commitments is about to exceed the collective net worth of its citizens, PGPF has calculated. Growth in the government's unfunded promises for social insurance programs such as Medicare, combined with a drop in America's net worth due mainly to home equity values, is causing this unprecedented shift. PGPF's calculations are based on the new consolidated federal financial statements as of September 30, 2008 and do not reflect the addtional toll taken by more recent market declines, bailout packages, and record October and November deficits. The statements show an estimated $56.4 trillion in debts, liabilities, and promises for Medicare and Social Security versus a household net woth of $56.5 trillion.

(Excerpt) Read more at pgpf.org ...


TOPICS: Culture/Society
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David Walker is not some partisan pundit with a political economic agenda to promote. He's the former Comptroller General of the United States, the nation's "CPA." He's appeared several times on the Glenn Beck show, C-span and numerous other media outlets. He's dedicated his career to alerting Americans to the imminent financial shipwreck if current spending and entitlements are not brought under control. By the way, Reuters on Dec. 14, had this headline: "Obama Stimulus Could Reach $1 Trillion: Report." Feel better with Obama's new New Deal on the way?
1 posted on 12/15/2008 8:58:34 PM PST by T.L.Sink
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To: T.L.Sink

Forget Bernie Madoff, Social Security is the biggest ponzi scheme of all time. The only difference is that Social Security is legal, and everyone knows its a ponzi scheme.


2 posted on 12/15/2008 9:01:17 PM PST by St. Louis Conservative
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To: T.L.Sink
Hyperinflation!

3 posted on 12/15/2008 9:03:19 PM PST by USFRIENDINVICTORIA
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To: T.L.Sink

Mr. Walker isn’t real popular in Washington. But, the rest of us like him!


4 posted on 12/15/2008 9:06:32 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: T.L.Sink
Even if Mr. Walker is half-correct, the current state of governmental incompetence borders on - at the very least - willful disregard.

At the worst: treason.

5 posted on 12/15/2008 9:12:51 PM PST by Psycho_Bunny (By Obama's own reckoning, isn't Lyndon LaRouche more qualified? He's run since the 70's)
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To: T.L.Sink

Is debt not someone else asset?


6 posted on 12/15/2008 9:13:32 PM PST by ThomasThomas ( Just because I leave out words and letters dosen't mean I didn't see them while typing!)
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To: T.L.Sink
The statements show an estimated $56.4 trillion in debts, liabilities, and promises for Medicare and Social Security versus a household net woth of $56.5 trillion.

We could sell some of our territories (Puerto Rico, Guam, virgin Islands), some of our national parks, Maybe a Hawaii , Alaska, or California.

7 posted on 12/15/2008 9:13:55 PM PST by oldbrowser (bipartisanship means capitulation)
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To: T.L.Sink

Welcome to the Dark Ages!


8 posted on 12/15/2008 9:14:18 PM PST by Republic of Texas (Socialism Always Fails)
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To: ThomasThomas
Is debt not someone else asset?

Only if it's good debt. If you promise something but can't back it up, then it's no asset to anyone (else you could generate assets by just making wild promises).

The debt has exploded under President Bush, but even beyond that, government has given promises that it can't keep. These obligations are beyond the national debt.

9 posted on 12/15/2008 9:23:02 PM PST by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: St. Louis Conservative

Exactly. In fact, Rush said the very same thing today.


10 posted on 12/15/2008 9:47:22 PM PST by T.L.Sink (qst)
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To: T.L.Sink

The problem is Obama has ripped off or sold the people a fantasy that doesn’t exist.

I dare say this is the biggest Ponzi scheme ever.


11 posted on 12/15/2008 9:54:30 PM PST by freekitty (Give me back my conservative vote.)
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To: oldbrowser

I don’t know about California since it’s in hock already - another liability!


12 posted on 12/15/2008 9:56:35 PM PST by T.L.Sink (qst)
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To: T.L.Sink
David Walker is not some partisan pundit with a political economic agenda to promote.

So what's his solution?

13 posted on 12/15/2008 10:04:39 PM PST by facedown (Armed in the Heartland)
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To: freekitty

I think so. He’s got the liberal “tax and spend” mentality in his DNA. I don’t think he has a clue about fiscal responsibility and reality - that the party is about to be crashed by an overwhelming debt burden - on future genrations as well. Or maybe he knows and just doesn’t give a damn if he can get some votes out of it.


14 posted on 12/15/2008 10:05:53 PM PST by T.L.Sink (qst)
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To: facedown

Basically, he’s urging a cessation of out-of-control spending. He also has some ideas on reforming Medicare and Social Security and other entitlements to curtail their growth - by cutting waste and limiting increases to the inflation rate rather than arbitrary congressional increases. For example, stop the government from raiding Social Security funds for totally unrelated projects, etc.


15 posted on 12/15/2008 10:16:17 PM PST by T.L.Sink (qst)
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To: T.L.Sink

For $310 Million, each of us could be bailed out.

Why are they spending 700 Billion??


16 posted on 12/15/2008 10:21:46 PM PST by rahbert
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To: T.L.Sink

I urge everyone to research Peter Peterson on the ‘net. Quite a character. I think he earned something like $170,000,000 last year. He knows ‘exactly’ how this whole ‘scheme’ works. He’s near the top of the pyramid! One of the men behind the curtain...

More central banking BS...


17 posted on 12/15/2008 10:30:46 PM PST by cliniclinical (space for rent)
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To: Psycho_Bunny

At least criminal negligence! Some CEO’s have made big mistakes but they’d be in jail if they ran their businesses like our government runs it’s affairs.


18 posted on 12/15/2008 10:35:03 PM PST by T.L.Sink (qst)
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To: rahbert

The last I heard it’s going to be over a trillion. I’m getting dizzy from being bombarded with billions and trillions every day. I’d make a lousy astronomer!


19 posted on 12/15/2008 10:41:09 PM PST by T.L.Sink (qst)
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To: rahbert
For $310 Million, each of us could be bailed out.

That's about a dollar for each American, approx.

20 posted on 12/16/2008 12:23:43 AM PST by MyTwoCopperCoins
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