By John Sykes
We are now completely and totally bankrupt, us, you and me! We the People now owe more than 352% of our total household net worth if the US is to meet it’s current long term fiscal needs.
Read the sources of my math below. It’s pretty easy. $222 Trillion / $63 Trillion = 352%.
By the way, you and every other US income-tax-paying household only need to write a check of +$3 Million to the US Treasury right now to solve the fiscal debt.
Laurence Kotlikoff and Scott Burns reported:
The U.S. fiscal gap, calculated (by us) using the Congressional Budget Office’s realistic long-term budget forecast -- the Alternative Fiscal Scenario -- is now $222 trillion. Last year, it was $211 trillion. The $11 trillion difference -- this year’s true federal deficit -- is 10 times larger than the official deficit and roughly as large as the entire stock of official debt in public hands.
USA Today reported:
Household net worth peaked at $66 trillion before the recession hit in December 2007 and fell to $54 trillion in 2008, according to the Fed. It was $63 trillion in the first quarter this year, but that doesn't reflect the stock market's fall since.
And we wonder why our politicians would rather avoid budgets and take vacations? They know this. They know that the answers are very, very tough and will cost most of them their jobs. They know we are the only real source for a solution because the government, doesn’t get money anywhere else than us unless it prints it or borrows it – which only makes things worse.
There is a solution. It will involve reducing Federal spending to 20% of GDP by 2016. This will only happen if we get about 6% annual growth in GDP and pare at least $400 Billion in annual federal expenditures. (More from Fred Bauer at americanthinker.com on this..)
This will not happen without massive structural and political change – call it a return to former American moral and political values. What do you think the chances are of getting this done with the current bi-partisan cabal of the DC political elite? Consider that our debt jumped $11 Trillion this year alone while they claimed they were stopping and reversing increases.
It isn’t Nero fiddling. It’s most of our government, politicians and bureaucrats alike!