Just how broke are we?

Good day all. As you know, unless you live under a rock somewhere in outer Mongolia, the United States National Debt is around $17 Trillion dollars. The debt skyrocketed under GW Bush and under Obama has exploded the debt to the levels we see now.

$17 Trillion dollars. How the heck are we going to pay that off? Well, I wouldn’t worry to much, because an Economic professor says it’s a lot higher then that. How much higher? Try $70 Trillion dollars! Here are some of the details from Fox News:

The federal government has been low-balling the public for years on how much debt it actually has, a University of California, San Diego economics professor says, adding that the real amount is $70 trillion – not $16.9 trillion.

James Hamilton’s claim the United States is in a much deeper financial hole than many realize comes as Congress gets ready for another budget battle when lawmakers return in September. Both sides have been digging in on their policy positions over the debt, spending and the country’s future fiscal health.

Hamilton believes the government is miscalculating what it owes by leaving out certain unfunded liabilities that include government loan guarantees, deposit insurance, and actions taken by the Federal Reserve as well as the cost of other government trust funds. Factoring in those figures brings the total amount the government owes to a staggering $70 trillion, he says.

Well, I hope you recovered quickly from your heart attack and stroke after reading that. I, for one, am not at all surprised at that level of debt. The way the Federal Government keeps it’s books would get anyone else a lengthy stay in Club Fed. The Congress and the President, going back who knows how long, have been perpetrating a massive fraud on the taxpayers of America. So, what is running up the dent in Professor Hamilton’s opinion?

Hamilton believes important areas of federal off-balance-sheet commitments include loans for post-high school education, the Federal Deposit Insurance Corporation and the Federal Reserve System.

“The biggest off-balance-sheet liabilities come from recognition of the fiscal stress that will come in the form of an aging population and rising medical expenditures,” Hamilton says, adding, “It is worth noting that there are many historical episodes in which off-balance sheet liabilities ended up having quite significant on-balance sheet implications.”

Congress and the president du jour have been notorious for cooking the books, going back at least a century. It’s probably gotten worse since the Roosevelt Administration with his “New Deal” fiasco and having to deal with World War Two.

“Losses at these institutions ended up dwarfing the capabilities of the now-defunct Federal Savings and Loan Insurance Corporation to honor its promise to guarantee depositors,” he says.

The final on-balance-sheet cost to taxpayers honoring those guarantees came out to $124 billion

For those of you who don’t remember that disaster, one of the people up to his neck in the Savings and Loan mess was Senator John McCain. He escaped expulsion from the senate and criminal prosecution by the skin of his teeth. Mores the pity. If he had been kicked out, he wouldn’t be trying to suck up to the Muslim Brotherhood right now instead of calling for them to be carpet bombed.

Boston economists Laurence Kotlikoff and Scott Burns warned in a 2008 Forbes article about what could happen if the government doesn’t curb its spending.

“The earthquake will come via a collapse in the market for U.S. government bonds as domestic and foreign investors realize that the only way Uncle Sam can meet his future spending obligations is to print massive quantities of money,” they said. “The result will be sky-high inflation and interest rates and, most surely, a prolonged reduction in output and employment. This could happen today. It could happen tomorrow. But it will happen here just as it has happened in every other country that tried to spend far beyond its ability to pay.”

Well guess what the Fed is doing right now? They call it Quantitative Easing. Everyone else calls it printing more money. Of course, Obama, the Progressive Liberal Democrats and not a few RINO’s don’t see an issue. As long as they can keep their fat asses in those congressional seats, and get all those special privileges, they don’t care what happens to the rest of us. Eventually, as the late former Prime Minister of Great Britain once said, “Eventually, you run out of other people’s money. We are now at that point. The Treasury is already starting to have problems selling bonds. Soon, they will have no choice but to jack up the rates, or go the way of Greece and default on the debt. When that happens, kiss the United States goodbye.

Thatisall

~The Angry Webmaster~

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