$120 trillion: The shocking true size of our nation's debt!

What’s wrong with this picture?

Posted on The New York Post-By Michael Tanner-On June 26, 2011:

“The Congressional Budget Office released a new report this week showing that the federal government’s publicly held debt would top 101% of GDP by 2021, more than the value of everything produced in this country over the course of a year. Think of it like owing more on your credit cards than your entire family income. By 2035, the publicly held debt, CBO says, could top an almost unfathomable 190% of GDP.

And that was the good news.

The federal government actually has three different types of debt.

Debt held by the public, which generated the headlines in the CBO report, is the type of government bonds that you — or the Chinese government — might own. Economists worry a lot about this type of debt because the government has to borrow the money from private credit markets.

The government borrowing competes with investment in the nongovernmental sector, leaving less money available for private investment in such things as factories and equipment, research and development, housing, and so on.

Growing levels of publicly held debt can drive up interest rates in the long-run, and may already be choking off interbank lending.

But that’s not the only type of government debt.

For example, there is intragovernmental debt, which is essentially debt that the federal government owes to itself, such as debt it owes to the so-called Social Security Trust Fund. If publicly held debt is like the money you borrowed from a bank, intragovernmental debt is like the money you swiped from your kid’s piggy bank. It may not be on your credit report, but you still have to pay it back.

Today, intergovernmental debt exceeds $4.6 trillion.

The good news here is that intragovernmental debt is not projected to grow much in the future. The bad news is that that is because both Social Security and Medicare are already running deficits — there’s nothing left to steal.

As if that’s not enough, there is also a third category of government debt: “implicit debt.”

This represents the unfunded obligations of programs such as Social Security and Medicare — the amount that those programs owe in benefits in excess of the amount of taxes that they expect to take in. Think of it as bills you know are going to come in next month but haven’t been delivered yet.

According to the annual report of the Social Security system’s trustees, that program’s unfunded liabilities now exceed $18 trillion. Medicare is in even worse shape. The most recent estimate of its finances, also released this week, warns that Medicare owes $36.8 trillion more in benefits that it is expected to be able to pay for.

And that is the optimistic outlook: It assumes that all the projected savings from President Obama’s health care reform actually happen as promised, something that even Medicare’s own actuaries are deeply skeptical of. If those savings don’t materialize, Medicare’s debt could actually top $90 trillion!

Add it all up, and total US debt actually exceeds 900% of GDP.

That’s somewhere in excess of $120 trillion. We are beginning to talk real money here.

The CBO also contains bad news for those who believe that we can fix this problem simply by cutting “fraud, waste and abuse.” As CBO points out, the projected growth in the debt “is attributable entirely to increases in spending on several large mandatory programs: Social Security, Medicare, Medicaid, and (to a lesser extent) insurance subsidies that will be provided through [Obamacare].”

There is simply no way to deal with our debt problems without reforming those entitlement programs.

Finally, the CBO report makes it clear that we have a debt problem because spending is too high, not because taxes are too low.

In fact, even though taxes are currently at a near historic low as a proportion of the economy, that is largely a result of the recession.

If the economy returns to normal growth rates (a big “if”), federal revenues will not only rise, but will actually be higher than the postwar average percentage of GDP by the end of the decade. In fact, this will happen even if the Bush tax cuts are extended and the Alternative Minimum Tax AMT continues to be patched.

GOP lawmakers who left negotiations with Obama this week over his unwillingness to pledge no new taxes understand this.

The problem is the money going out, not coming in.

We face a simple choice: Cut spending or face fiscal catastrophe.

The question is: Is Washington listening?

  • Michael D. Tanner is a senior fellow at the Cato Institute.

Source:

http://www.nypost.com/p/news/opinion/opedcolumnists/trillion_the_sh...

Note: The following articles and/or blog posts and video relate to this disturbing issue-You Decide:

I. Jon Voight Asks Some Important Questions About Obama!-Posted on The Patriot Update-By Ann-Marie Murrell-On June 27, 2011:

http://patriotupdate.com/articles/jon-voight-asks-some-important-qu...

II. Michelle Obama, Elitist Vacationer!-Posted on The Patriot Update-By Ann-Marie Murrell-On June 27, 2011:

http://patriotupdate.com/articles/michelle-obama-elitist-vacationer

III. Americans Worse Than When Obama Inaugurated!-Posted on Bloomberg-On Mike Dorning–On June 21, 2011:

http://www.bloomberg.com/news/2011-06-22/americans-worse-now-than-w...

IV. Archie Bunker on Democrats!

http://www.youtube.com/watch?v=7fqCS7Y_kME&NR=1

Note:  My following blog post contains numerous articles and/or blog posts and videos that relate to this disturbing issue-You Decide:

Is it important to understand the Marxist assault on the foundations of our system?

http://weroinnm.wordpress.com/2011/01/27/is-it-important-to-underst...

Note If you have a problem viewing any of the listed blog posts please copy web site and paste it on your browser. Be aware that some of the articles and/or blog posts or videos listed within the contents of the above blog post(s) may have been removed by this administration because they may have considered them to be too controversial.  Sure seems like any subject matter that may shed some negative light on this administration is being censored-What happened to free speech?-You Decide.

“Food For Thought”

God Bless the U.S.A.!

http://www.youtube.com/watch?v=Q65KZIqay4E&feature=related

Semper Fi!

Jake

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LIGHTER SIDE

 

Political Cartoons by AF Branco

Political Cartoons by AF Branco

ALERT ALERT

Horrible: Democrats Set The Constitution On Fire With Fraudulent Impeachment

House Democrats unveiled two articles of impeachment against President Donald Trump on Tuesday morning after an investigation that violated fundamental provisions of the Constitution and the Bill of Rights.

The investigation of the president began with the complaint of a so-called “whistleblower” who turned out to be a rogue Central Intelligence Agency employee, protected by a lawyer who had called for a “coup” against Trump in early 2017.

Democrats first demanded that the “whistleblower” be allowed to testify. But after House Intelligence Committee chair Rep. Adam Schiff (D-CA) was found to have lied about his committee’s contact with the “whistleblower,” and after details of the “whistleblower’s” bias began to leak, Democrats reversed course. In violation of the President Trump’s Sixth Amendment right to confront his accuser, Democrats refused to allow the “whistleblower” to testify. They argue the president’s procedural rights, even if they existed, would not apply until he was tried in the Senate — but they also invented a fraudulent “right to anonymity” that, they hope, might conceal the whistleblower even then.

Schiff began the “impeachment inquiry” in secret, behind the closed doors of the Sensitive Compartmentalized Information Facility (SCIF) in the basement of the U.S. Capitol, even though none of the testimony was deemed classified. Few members of Congress were allowed access. Schiff allowed selective bits of testimony to leak to friendly media, while withholding transcripts of testimony.

Speaker of the House Nancy Pelosi (D-CA), having allowed the secret process to unfold, legitimized it with a party-line vote authorizing the inquiry. The House resolution denied President Trump the procedural rights enjoyed by Presidents Richard Nixon and Bill Clinton, and denied the minority party the traditional right to object to witnesses called by the majority.

Rather than the House Judiciary Committee, which traditionally handles impeachment, Pelosi also deputized the House Intelligence Committee to conduct fact-finding; the Judiciary Committee was turned into a rubber stamp. Schiff held a few public hearings, but often failed to release transcripts containing exculpatory evidence until after they had passed.

In the course of the Intelligence Committee’s investigation, Schiff quietly spied on the telephone records of his Republican counterpart, Ranking Member Devin Nunes (R-CA). He also snooped on the phone records of a journalist, John Solomon; and on the phone records of former New York City mayor Rudy Giuliani, acting as President Trump’s personal lawyer.

Schiff’s eavesdropping violated both the First Amendment right to press freedom and the Sixth Amendment right to counsel. Yet he proceeded undeterred by constitutional rights, publishing the phone logs in his committee’s report without warning, confirmation, or explanation, alleging that Nunes and the others were part of a conspiracy to assist the president’s allegedly impeachable conduct. When Republicans on the Judiciary Committee asked the Intelligence Committee’s majority counsel, Daniel Goldman, to explain the phone logs, he refused to answer,

Ironically, Schiff had done exactly what Democrats accuse Trump of doing: abused his power to dig up dirt on political opponents, then obstructed a congressional investigation into his party’s and his committee’s misconduct.

Democrats’ articles of impeachment include one for the dubious charge of “abuse of power,” which is not mentioned in the Constitution; and one for “obstruction of Congress,” which in this case is an abuse of power in itself.

Alexander Hamilton, writing about impeachment in Federalist 65, warned that “there will always be the greatest danger that the decision will be regulated more by the comparative strength of parties, than by the real demonstrations of innocence or guilt.” Democrats have fulfilled Hamilton’s worst fears.

The Trump impeachment will soon replace the 1868 impeachment of President Andrew Johnson — which the House Judiciary Committee staff actually cited as a positive precedent — as the worst in American history.

In service of their “coup,” Democrats have trampled the Constitution and the Bill of Rights. The Republic has never been in greater danger.

You don't get to interrupt me

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