The first link below is an article by Professor Laurence Kotlikoff, an Economics Professor at Boston University. He flatly states: “Let’s get real. The U.S. is bankrupt.” His article points out that the IMF is warning about the deep problems the USA is in financially, and that one solution would be that taxes would need to double just to service our national debts. He calculates that our actual national debt is “$202 trillion…more than 15 times the official debt” figures. He refers to the entitlement programs of the US federal government as a “massive ponzi scheme,” and states flatly that “the US is in worse fiscal shape than Greece.”
Let these statements and figures sink in. Professor Kotlikoff’s article indicates that the USA is facing a national fiscal crisis of unprecedented seriousness. The first link is short and readable, and I hope all readers of this blog take the time to review it. Many sessions of Congress (both GOP and Democrat) have a long record of ignoring fiscal realities. Will they get serious about the USA’s epic fiscal problems in the new Congress? They may not have any choice but to finally face the hard realities. Other nations may be just about ready to compel the USA to get its house in order. I watched CBS-TV News tonight and it ran a story that President Obama’s agenda and proposals were rejected by the other nations at the G-20 meetings in Seoul, South Korea. Other nations are increasingly paying less attention to the president of the USA. Indeed, I fear they increasingly perceive President Obama as the leader of a deadbeat nation which hasn’t yet faced its true condition. Indeed, they all saw that Obama and his programs were roundly rejected by the US voters in the Midterm Congressional elections so they may already see him as a lame-duck president with little international clout. We will soon see if the next Congress gets serious about making some very hard and long-overdue decisions. If they don’t do so, expect immense pressure from foreign nations to compel them to do so.
The second link is for those who understand technical financial language. It is a report written back in 2006 by Professor Kotlikoff on the seriousness of the US financial situation. What is especially noteworthy about it is that it was published by the St. Louis Federal Reserve District. This confirms Professor Kotlikoff is no wild-eyed fringer. The establishment knows how bad things really are. What they have not done is find a way to break the news to the US people…who will be furious when they learn their leaders have led them (and their children) into financial ruin..