Real U.S. Government Debt is Much Worse Than You Think
The Daily Sheeple
October 29th, 2010
Reader Views: 2,231
Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion Ã¢â¬â 840 per cent of current GDP. Ã¢â¬ÅLetÃ¢â¬â¢s get real,Ã¢â¬Â Prof. Kotlikoff says. Ã¢â¬ÅThe U.S. is bankrupt.Ã¢â¬Â
Writing in the September issue of Finance and Development, a journal of the International Monetary Fund, Prof. Kotlikoff says the IMF itself has quietly confirmed that the U.S. is in terrible fiscal trouble Ã¢â¬â far worse than the Washington-based lender of last resort has previously acknowledged. Ã¢â¬ÅThe U.S. fiscal gap is huge,Ã¢â¬Â the IMF asserted in a June report. Ã¢â¬ÅClosing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 per cent of U.S. GDP.Ã¢â¬Â
This sum is equal to all current U.S. federal taxes combined. The consequences of the IMFÃ¢â¬â¢s fiscal fix, a doubling of federal taxes in perpetuity, would be appalling Ã¢â¬â and possibly worse than appalling.
Prof. Kotlikoff says: Ã¢â¬ÅThe IMF is saying that, to close this fiscal gap [by taxation], would require an immediate and permanent doubling of our personal income taxes, our corporate taxes and all other federal taxes.
Ã¢â¬ÅAmericaÃ¢â¬â¢s fiscal gap is enormous Ã¢â¬â so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems Ã¢â¬â as well as military and other discretionary spending cuts.Ã¢â¬Â
Read full article…
Delivered by The Daily Sheeple
Contributed by Mac Slavo of The Daily Sheeple.
Mac Slavo is co-creator of The Daily Sheeple, an alternative media venue for breaking news, opinion, commentary and information. Mac is also the founder of the popular SHTFplan.com community oriented website which aims to help individuals understand and prepare for troubling times. Wake the Flock Up!
Please share: Spread the word to sheeple far and wide
Leave A Comment...
The Daily Sheeple Home Page