US present value total debt

[Drew99GT]

Imagine this: if you take into account the future shortfall in Social Security, Medicare, and Treasury revenue and the fact that surpluses in those 2 entitlement programs have always been spent in the general fund of the US Treasury, we as a country would need 202 trillion dollars in the bank, earning interest todayto make up the gap in projected revenue in the future.

To out that into perspective, world GDP today is around 60 trillion dollars. So, we need more then 3 times the money that the entire world produces today just to keep the system we have now the same in the future.

http://www.bloomberg.com/news/2010-08-11...-kotlikoff.html

Wow is all I can fathom at this point...

 

[Quest]

I'm speechless at this moment (RE: after reading the numbers). While I already long suspected that this has became a reality almost a decade ago (did my economics degree 15 yrs ago), it's just that I never have the time to go fact-finding on all these values to support my understanding so far. Besides: what good is it if I talk economics as coffee talk in front of a whole bunch of computer geeks?

Q.

 

[ToyotaNSaturn]

$202 Trillion? That's it?!? Makes the $3.3 Trillion missing from the Treasury a drop in the proverbial bucket.

 

[d00df00d]

Can't see how this can be discussed without going political and/or becoming a magnet for hysteria....

 

[Drew99GT]

Originally Posted By: d00df00d
Can't see how this can be discussed without going political and/or becoming a magnet for hysteria....


Agreed, but 99.9% of Americans will never learn this information until they're walking the streets with ripped dirty clothing looking for scraps of food in trash cans, wondering why the entire world financial system did this:

A visual comparison of the economy to motorsports for us gearheads at BITOG.

http://www.youtube.com/watch?v=qBF6iZfguF0

 

[daves87rs]

It's just scary...that's all I can say.

 

[CivicFan]

The Fed needs to inject some more money in the economy as we are on a path to deflation.

 

[IndyIan]

It sounds to me like the article is trying to scare up support to get rid of social programs now...
I think they are using the current economic trend(a near depression) to model years into the future. So I guess if you think your economy is going to level off for the next 20 years while everyone is retiring then I guess its time to push the panic button.
I'm no economist but I bet taxes from business profits are down 50% from early 2008. I'm sure a small tax rate increase would help things out immensely but if your businesses get profitable again it may not be needed?

 

[Papa Bear]

I just hope we don't ride this garbage truck all the way to the dump.....

 

[brianl703]

I'm sure that we can just tax our way out of this situation.

 

[Drew99GT]

Originally Posted By: IndyIan

I think they are using the current economic trend(a near depression) to model years into the future.


No he isn't! He's using data from the CBO and IMF based on positive rates of GDP growth!

The heads of the CBO have been telling us this for years - this is just the latest analysis by one particular economist based on the latest data.

 

[bigmike]

I don't know about the rest of you, but I think I'm still young enough to ride this mess out.

Some of you are screwed.

 

[Cutehumor]

Originally Posted By: bigmike
I don't know about the rest of you, but I think I'm still young enough to ride this mess out.

Some of you are screwed.


I'm paying almost $300 a month into social security from my paycheck. I'm 33 years old now and I plan to collect my social security in 34 yrs when I turn 67 years old or I'll sue the government for every penny I paid into this entitlement program.

 

[Oldwolf]

Originally Posted By: bigmike
I don't know about the rest of you, but I think I'm still young enough to ride this mess out.

Some of you are screwed.


Ha! I was just going to say that I think I am old enough to ride this mess out!