National Debt Nightmare Report: $61 Trillion In Unfunded Liabilities, Approaching $600,000 Per Household
Video - Julia Coronado, BNP Paribas, Joel Naroff and Vince Farrell on the US debt nightmare - June 7, 2011
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This morning's story from USA Today that inspired this segment...
The federal government's financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation's gross domestic product.
Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.
Social Security added $1.4 trillion in obligations, partly reflecting longer life expectancies. Federal and military retirement programs added more to the financial hole, too.
Corporations would be required to count these new liabilities when they are taken on — and report a big loss to shareholders. Unlike businesses, however, Congress postpones recording spending commitments until it writes a check.
We need an unfunded liabilities clock...
Jun 7, 2011 at 5:45 PM
Reader Comments (10)
Government's mountain of debt
http://www.usatoday.com/news/washington/2011-06-06-us-debt-chart-medicare-social-security_n.htm
an additional report from usa today...
Police say a vehicle travelling eastbound near Luskville, Que. hit the 300-pound black bear at about 10:30 Monday night, sending the animal into the opposite lane.
The bear was then struck by an on-coming car, sending the animal through the windshield and out the back window.
http://ottawa.ctv.ca/servlet/an/local/CTVNews/20110607/OTT_FATAL_110607/20110607/?hub=OttawaHome
http://blogs.forbes.com/larrybell/2011/06/07/u-n-agreement-should-have-all-gun-owners-up-in-arms/
some of you might want to read this one...
http://online.wsj.com/article/SB10001424052702304432304576371032577629562.html?mod=WSJ_hp_MIDDLETopStories
http://boston67.blog.com/mers-mortgage-securitization-county-recorders/ma-register-of-deeds-press-releases/
http://blogs.reuters.com/columns/2011/06/06/japans-widow-maker-bond-trade-still-looks-lethal/
http://www.businessinsider.com/wall-street-interns-are-now-making-100000-per-year-quants-2011-5#ixzz1Oe1ZpLt8
The asswipes who did 9-11, the DH oil well in the GOM, Wall Street fraud,etc. are sure having a good time. You would think Bush and Obama were old friends with these guys. Oh! They are? Imagine that! Or mewl.
The 'uncovered liabilities' this article refers to in medicare and social security are 'future liabilities' that are not covered by an asset of equal or greater value. The only possible meaning of ‘unfunded liability’ is in contrast to a ‘funded liability,’ which presumably is more financially secure and apparently morally superior as well. Social Security
Social Security and Medicare have been paying out their benefits from current dedicated payroll taxes and by drawing on the trust funds that had built up because of the years that more was being collected than paid out in benefits. The massive Fed debt stems from predominantly the Bush Tax cuts for the wealthy to the tune of just under 1/2 the deficit inured since they went into effect, Bush wars and the economic collapse that began during the Bush admin, and NOT from 'unfounded liabilities' out at some future date.
An ‘unfunded liability’ by the government to make good on some financial commitment in the future is functionally no different than a ‘funded liability’ that consists of the only dependable asset around - namely U.S. Treasury obligations. The phrase 'unfunded liability' is a phrase that “implies an alternate state of fiscal adequacy that really does not exist at all".
we could cut defense to $0 and end all stealth wall street bailouts and medicare would still be looking at massive insolvency...we are looking at a shortfall there of more than $30 trillion by some estimates....it will effect my generation, not yours...