Hamilton believes the government is miscalculating what it owes by leaving out certain unfunded liabilities that include government loan guarantees, deposit insurance, and actions taken by the Federal Reserve as well as the cost of other government trust funds. Factoring in those figures brings the total amount the government owes to a staggering $70 trillion, he says.
Hamilton believes important areas of federal off-balance-sheet commitments include loans for post-high school education, the Federal Deposit Insurance Corporation and the Federal Reserve System.
“The biggest off-balance-sheet liabilities come from recognition of the fiscal stress that will come in the form of an aging population and rising medical expenditures,” Hamilton says, adding, “It is worth noting that there are many historical episodes in which off-balance sheet liabilities ended up having quite significant on-balance sheet implications.”
Read more: California economist says real US debt $70 trillion | Fox News
This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
If 70t is true and the entire economy is roughly 16t, you can stop worrying about it, since you'll never pay that back, but if I was a creditor I'd be sweating.This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
Well, in all fairness "unfunded liabilities" really just means future expenses that we don't have money for right now. $70T sounds like a big number, but not if the time frame is something like 50-100 years. I agree that spending is a huge problem, but calling future liabilities debt is a huge stretch.
I guarantee you the right has been pushing such rhetoric since beginning of S.S., Medicare, etc.... How many people thought that Medicare would bankrupt the country in 30 years around 1960-1965?
Please.... Considering deposit insurance and various loan guarantees as debt is only a scare tactic by the right.
I would be surprised if you actually understood the logic behind an unfunded liability.
I guarantee you the right has been pushing such rhetoric since beginning of S.S., Medicare, etc.... How many people thought that Medicare would bankrupt the country in 30 years around 1960-1965?
How many people thought entire cities (Detroit) and states (California) would actually consider filing for bankruptcy one day?
Well, in all fairness "unfunded liabilities" really just means future expenses that we don't have money for right now. $70T sounds like a big number, but not if the time frame is something like 50-100 years. I agree that spending is a huge problem, but calling future liabilities debt is a huge stretch.
If 70t is true and the entire economy is roughly 16t, you can stop worrying about it, since you'll never pay that back, but if I was a creditor I'd be sweating.
Our programs are based off a time period where it was rare to live past 75. Do you deny this?
We're about to pile on national healthcare and amnesty 13 million people, many of which are going to utilize every government program they can get their hands on.
These loan guarantees and insurance demands are likely a fraction of what they'll truly be.
That's good for us then. Just think of all we 'own'.If you owe a million dollars then the bank owns you. If you owe a trillion dollars then you own the bank.
So the mortgage payments I have due next year are not debt because it is this year?
....and you are also wrong that it is a "huge stretch" because these projections take into account projected revenues and projected expenses under current policy. Since we never pay off any debt and just refinance it making interest only payments, the interest only payments are going to be eating up massive amounts of our federal budget.
The writing has been on the wall in the US for at least a decade but many still don't recognize it, just as they fooled themselves about Detroit and several other cities.California isn't declaring bankruptcy...Detroit...the writing has been on the walls for decades. It's not "out of nowhere Gosh the world is falling apart". That's the reason states and cities credit ratings vary...because bankruptcy is always a possibility.
The writing has been on the wall in the US for at least a decade but many still don't recognize it, just as they fooled themselves about Detroit and several other cities.
Are you still with the Kool Aid and believing these political opportunists?
Obama Flashback: ‘We Refused to Let Detroit Go Bankrupt’ | Video | TheBlaze.com
This is not a Republican-Democrat issue, folks. This is threatening to end this country as we know it, in the not-to-distant future.
And yet, we seem bent on piling on more and more burden and stress to the budget year after year.
I would not want to be a newborn baby in this country today. The future is bleak.
And so they should. He was quite clear.Everybody knows what Obama was talking about regarding that quote.
"Unfunded liability" is a completely meaningless term. You can make up whatever timeframe and revenue scenario you want.
I've seen it "estimated" as high as $200 trillion or higher. This was over like 100 years or more and assumed zero revenue growth.
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