Boston University economist Laurence Kotlikoff did not hold back in his Senate Budget Committee testimony, “The first point I want to get across is that our nation is broke. Our nation is broke, and it’s not broke in 75 years or 50 years or 25 years or 10 years. It’s broke today.” He goes on to point out…
- Indeed, it may well be in worse fiscal shape than any developed country, including Greece
- This declaration of national insolvency will, no doubt, shock those of you who use the officially reported federal debt as the measuring stick for what our country owes
- We have a $210 trillion fiscal gap at this point,” Kotlikoff told the senators, which amounts to 211 percent of the U.S.’ $18.2 trillion GDP, making it higher than Greece’s 175 percent debt-to-GDP ratio
- 16 times larger than official U.S. debt, which indicates precisely how useless official debt is for understanding our nation’s true fiscal position
- Stated differently, the overall federal government is 58 percent underfinanced.
And so on and so forth. You get the picture. The US will never be able to repay 25% of its obligations, let alone all of it. This leads to a few possible outcomes. An outright default, war and/or currency debasement/hyperinflation. I wonder which option the fools in our government will choose.
