http://trimtabs.com/blog/2012/11/28/actual-us-deficit-8-trillion-greater-than-6-6-trillion-after-tax...
The specific Aha was that these two former Clinton Economists had uncovered, buried in the annual Medicare Trustees Report, that the growth in today’s dollars of future Medicare and Social Security obligations is a whopping $7 trillion annually. What that means is if the US were a public company it would have to report a loss of $7 trillion this year, and that would boost the current budget deficit to $8 trillion. What is more incredible is that total after tax income for all Americans is $6.6 trillion, less than what the government is spending in the real world!
This is crazy!
In on a January 25 video, I estimated $50 trillion as the present value of total federal government entitlements. I was wrong. Cox and Archer report the current liability of the federal government is an incredible $87 trillion for Social Security, Medicare and federal employees’ future benefits. That is a third bigger than the entire $63 trillion net worth of the entire US. We owe more than we have and we spend and promise to spend way more than we make.
The US is at a fiscal cliff where everyone expects a deal that will include a small amount of future entitlement cuts in exchange for a few hundred billion of higher taxes. This is a colossal joke. Our government is promising more in future entitlements than total income. And this administration says entitlement cuts are off the table. After all Paul Krugman tells them that deficits do not matter.
................................
