Thursday, October 28, 2010
A horror story
The scary actual U.S. government debt
Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion, which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,†Prof. Kotlikoff says. “The U.S. is bankrupt.â€
Posted by devo @ 05:35 PM (2807 views)
7 thoughts on “A horror story”
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general congreve says:
I heard the REAL debt was ONLY $130 Trillion, not $200 Trillion. But what’s a few trillion between friends.
Joking aside, this is the big story behind all the other stories (house prices et al.) and the one that will have the biggest impact on those that are unprepared. However, those that are prepared will be as happy as p1gs in sh1t when this motherload finally blows!
devo says:
Another Kotlikoff article, from February, which offers some insight into Merv’s speech this week on dismantling the banks…
How Larry Kotlikoff Would Fix the Financial System
The Boston University economist wants to take all the risk out of banking, hedge funds, and insurance companies. Some people are listening.
In Kotlikoff’s biggest coup yet, Bank of England Governor Mervyn King—Britain’s counterpart to Federal Reserve Chairman Ben Bernanke—urged members of Parliament to study the plan.
http://www.businessweek.com/magazine/content/10_07/b4166042289206.htm
tom101 says:
What would a massive spike in oil price do to this debt? or the dollar for that matter?
icarus says:
If it’s $200 trillion and the US is still trading then a deficit of “only” $100 trillion would be in the comfort zone. But a deficit of $100 trillion isn’t supposed to be in the comfort zone. So how high is the bar?
Help, Were Drowning says:
The west has always been about its business of a selective elite ripping off the majority.
Thats the true documented history of centuries.
The rest is waffle, much like the fakism, d-e-m-o-c-r-a-c-y
Simon says:
Icarus ,
Given our politicians attempts to confuse debt with budged deficit (assuming they know the difference) surely it’s worth using the terminology “debt” here .
icarus says:
Agreed