According to Richard W. Fisher, the president and CEO of the Federal Reserve Bank of Dallas, the unfunded liabilities of the US Social Security and Medicare system stand at $99.2 trillion today. That figure is not a misprint. If the US government plans to keep operating the Social Security system and the Medicare system, then the official federal debt really is $11.3 trillion plus $99.2 trillion, or $110.5 trillion. Why does our government state that its federal deficit is only slightly north of $11 trillion (with the term "only" a relative term, given that the true US deficit is about ten times greater than the "official" government figure)? Over the years, the US government has stated several reasons why they don't include unfunded obligations in their official debt figures, with one of the most common reasons being that these programs are optional and can be cut at any time.
Monday, June 1, 2009
The Real US Federal Debt Has Ballooned to More than $100 Trillion
From Ibtimes.com
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