University of California Study: US National Debt Is Really $70 Trillion

[ijphlrnxewho]

James Hamilton, an economics professor at the University of California, San Diego, just published his best estimate of the federal government’s “off-balance-sheet” liabilities, in which he concludes that the real national debt, popularly estimated to be $16.9 trillion, is in fact more than four times larger: $70.086 trillion. This is because of decisions to leave out certain unfunded liabilities when the national debt is counted. He explains:

read more at:
http://www.infowars.com/university-of-california-study-national-debt-is-really-70-trillion/

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[cbeast]

Disregarding the source, the US is in debt to whom? How much dirt is in a hole 70 trillion deep?

[justusranvier]

Disregarding the source, the US is in debt to whom?

Retired federal employees, Social Security and Medicare recipients, Congressional pensions, etc.

[cbeast]

Disregarding the source, the US is in debt to whom?

Retired federal employees, Social Security and Medicare recipients, Congressional pensions, etc.

That was the point of the analogy of a hole. It's just a hole. It doesn't matter how deep it is because there is nothing there. At least that is the working theory. Some folks believe it doesn't matter how much debt there is as long as there is growth to sustain the payments and inflation.

[albyva]

James Hamilton needs to go back to school.


 Debt is what you "owe", not what you plan to owe. That is like saying my current debt is
really $800,000 because after 23 more years of paying my mortgage payments, that
is what I will have spent. Nevermind that I can sell my house tomorrow and go live on a
park bench, thus wiping out my future liabilities.


 Debt is what you owe on money you've already borrowed and spent. Debt (IS NOT) what
you will end up owing years and decades from now if nothing changes. And this professor
isn't taking into account future tax revenue changes. Even right now our deficit has fallen
by 50%, to around $600/billion.

[knight22]

What can you except from a debt based currency?
Unlimited amount of debt!   

[cbeast]

James Hamilton needs to go back to school.


 Debt is what you "owe", not what you plan to owe. That is like saying my current debt is
really $800,000 because after 23 more years of paying my mortgage payments, that
is what I will have spent. Nevermind that I can sell my house tomorrow and go live on a
park bench, thus wiping out my future liabilities.


 Debt is what you owe on money you've already borrowed and spent. Debt (IS NOT) what
you will end up owing years and decades from now if nothing changes. And this professor
isn't taking into account future tax revenue changes. Even right now our deficit has fallen
by 50%, to around $600/billion.

The problem with that is financialization. Everyone is gaming the system in a spiral race to the bottom. You really do need to take future debt into consideration. The Post Office is an example. I'm not saying it is a functional system, but it is what it is until it is no more.