$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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ALERT ALERT

YIKES!!! Chelsea Clinton Emphatically States A Person With A Beard And A Penis Can ‘Absolutely’ Identify As A Woman

  • The one issue Hillary and Chelsea don’t appear to agree on entirely is transgender self-identification
  • In an interview with The Sunday Times, journalist Decca Aitkenhead asked the Clintons about transgender self-identification
  • Chelsea Clinton replied ‘yes’ emphatically when asked if someone with a beard and penis can ever be a woman
  • ‘It’s going to take a lot more time and effort to understand what it means to be defining yourself differently,’ Hillary said
  • Aitkenhead said Hillary became ‘uneasy’ when the question was asked while Chelsea shot a ‘furious stare’ at the journalist as her mother answered
  • Hillary added: ‘It’s a very big generational discussion, because this is not something I grew up with or ever saw’

(Daily Mail) – It may appear Hillary and Chelsea Clinton always see eye-to-eye, but in a recent interview one topic cracked the facade of the like-minded mother-daughter power duo.

The one issue Hillary and Chelsea don’t appear to agree on entirely is transgender self-identification.

In an interview with The Sunday Times, journalist Decca Aitkenhead asked the Clintons if someone with a beard and a penis can ever be a woman, to which Chelsea replied emphatically, ‘Yes.’

However, as Aitkenhead describes it, Hillary looked ‘uneasy’, and blamed generational gaps for being less accepting.

‘Errr. I’m just learning about this,’ Hillary responded. ‘It’s a very big generational discussion, because this is not something I grew up with or ever saw. It’s going to take a lot more time and effort to understand what it means to be defining yourself differently.’

The Clintons sat sown with Aitkenhead to promote the book they co-authored, The Book of Gutsy Women: Favorite Stories of Courage and Resilience.

The book features Danica Roem, the first trans woman elected to a U.S. state legislature.

According Aitkenhead’s account, she tells Hillary during the interview that many British feminists of Hillary’s generation have a problem with the idea that a ‘lesbian who doesn’t want to sleep with someone who has a penis is transphobic.’

Hillary nods in agreement, while Chelsea ‘stiffens and stares at me’, according to Aitkenhead.

The journalist then adds that many women of Hillary’s generation are uncomfortable with biological males sharing women’s bathrooms.

‘I would say that, absolutely,’ Hillary nods firmly. ‘Absolutely. Yes.’

That’s when Chelsea begins shooting a ‘furious stare’ at Aitkenhead, who points it out to her.

‘I’m a terrible actor’, Chelsea laughs.

Chelsea then says she is thrilled with the National Health Service’s decision to assign patients to single-sex wards according to the gender they identify as, instead of their biological make up.

‘How can you treat someone if you don’t recognize who they feel and know in their core they are?’ Chelsea says.

‘And I strongly support children being able to play on the sports teams that match their own gender identity,’ she adds. ‘I think we need to be doing everything we can to support kids in being whoever they know themselves to be and discovering who they are.’

At this point Hillary looks conflicted.

‘I think you’ve got to be sensitive to how difficult this is,’ Hillary says. ‘There are women who’d say [to a trans woman], ”You know what, you’ve never had the kind of life experiences that I’ve had. So I respect who you are, but don’t tell me you’re the same as me.” I hear that conversation all the time.’

Despite the clear tension in the room, the pair say they don’t argue about this topic.

But according to Aitkenhead, ‘I get the impression they don’t like to present anything less than a united front to the world.’

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