Thursday, October 07, 2010

U.S. Deficit $202 Trillion

"Enron Accounting" Has Bankrupted America: U.S. Deficit Really $202 Trillion, Boston University economics professor Laurence Kotlikoff says.

As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.

But the situation is actually much, much worse.

“Forget the official debt,” he tells Aaron in this clip. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.

“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It...

Yahoo link


t_tsmart said...

Just like how they hide the real unemployment numbers, but this just boggles the mind. Page 12 of the CBO report states "With significantly lower revenues and higher outlays, debt would reach 87 percent of
GDP by 2020, CBO projects."

$202 trillion deficit and projected debt to GDP of 87% by 2020, and people wonder why Greece had riots. Those will be small potatoes compared to the ones coming to the US in the near future.

t_tsmart said...

Here's links to the IMF & CBO reports

IMF Report:

CBO Report:

Willy2 said...

Price inflation ? Yes !
Monetary inflation ? No way !
Hyper-inflation ? Perhaps somewhere in the future !