Posted on 09/09/2019 11:20:53 AM PDT by NRx
* Total US debt including all forms of government, state, local, financial and entitlement liabilities comes close to 2,000% of GDP, according to AB Bernstein.
* The biggest potential load comes from entitlements, but is being pressured from rising levels of federal government debt as well.
* The warnings about potential debt hazards come as the total federal debt outstanding has surged to $22.5 trillion.
* A debt reform advocate says now is the time for the U.S. to tackle the issue, before recession hits.
Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level.
AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions.
Putting all that together paints a daunting picture but one that requires nuance to understand. Paramount is realizing that not all of the debt obligations are set in stone, and it’s important to know where the leeway is, particularly in the government programs that can be changed either by legislation or accounting
(Excerpt) Read more at cnbc.com ...
Ahhh debt and the deficit. Clearly no one cares.
Screw our grandchildren, Let’s Party!
No one is having kids we are all set
The cure for the debt is well known and traditional
Inflation and war.
One or both will resolve the debt issue
A lot of the social security and Medicare liabilities, are based on certain assumptions.
Social security liabilities are based on assumptions of tax rates, rates of inflation, rates of economic growth, the maximum income subject to social security tax,and how long they expect all.of us to be alive.
Clearly we have big troubles ahead in these areas, but the further out we try to project, the hazier the picture becomes.
I heard someone had done a 75 year projection for social security. Unfunded liabilities were in the tens of trillions, I dont recall the exact amounts. I think an unspoken additional assumption, is that government officials over the years, will make changes to address the issues before we get to the disasterous end point of such projections.
The big cities are the canary in the coal mine.
They are starting to drift in to bankruptcy as Baby Boomers are retiring.
Public officials are cowards and will do nothing to jeopardize their cushy jobs.
Congress is worse. They will do all they can to kick the can down the road far enough to reelected and no more. Actually dealing with the problem means standing up to unions and the elderly the two groups most likely to vote.
I heard someone had done a 75 year projection for social security. Unfunded liabilities were in the tens of trillions, I dont recall the exact amounts. I think an unspoken additional assumption, is that government officials over the years, will make changes to address the issues before we get to the disasterous end point of such projections.
Actually, the opposite has been what has been done historically.
Government officials will spike the forecast to paint an unrealistic prediction of bright skies and wonderous financial growth that will fill the pension funds to overflowing.
George W. Bush tried to make changes to Social Security in his first year in office to avoid bankrupting the system. The Democrats stopped him at every turn.
The best investment is brass and lead. Kept safe and dry and ready to go, and away from the claws our or government and any foreign enemies. Maybe not living in a major urban center, and having a solid bug out location. Because when it all falls apart, you want to be safe or already dead. In between is going to be bad.
I told you. Fighting another endless war in Afghanistan makes us, our kids & grand-kids more broke.
I’m 77, worked my butt off, retired at 52 debt free after saving and investing like a maniac.
I paid my share, taught my kids what I was taught and feel absolutely no pity or concern for those who get clobbered by this so called “debt bomb” if and when it ever explodes.
The officials elected are who caused this and if the worst happens these selfish, self aggrandizing, pontificating and insufferable assholes will have no place to hide when an enraged public finally realizes what they have had done to them.
Perhaps this is the reason why the scumbags are so frantic to take our guns away?
But what about infrastructure? The big blue staye infrastructure bailouut must be repeated, at least every 4-8 years to make red state residents pay for the irresponsibility of others.
But what about infrastructure? The big blue staye infrastructure bailouut must be repeated, at least every 4-8 years to make red state residents pay for the irresponsibility of others.
When you look at our relative debt vs. China, that is why they are going to eat our lunch
We are bankrupt. They are not.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.