We are broke. The only reason the stock market has been on an uptrend over the last year is because the Fed has been laundering errr pumping money into the system.
There is not enough money in the entire world to cover our debts. If IF illegal alien amnesty becomes law coupled with Obamacare this country’s economic system will collapse.
Our economy is that patient in the hospital who has died twice on the table and brought back after getting shocked. It has already had that hit of adrenaline directly into its heart and a slew of drugs pumped into its veins. It won’t last sooner or later the economy will flatline.
Is there a way out? Will controlling the spending save us? We could stop spending today but fact is we still owe the $70 trillion. We don’t make anything, we are not the center of manufacturing anymore to get that money into our system. Unless someone comes up with some new widget that will change life as we know it, that is made exclusively in the US (including all raw materials), don’t hold your breath!
California economist says real US debt $70 trillion
The federal government has been low-balling the public for years on how much debt it actually has, a University of California, San Diego economics professor says, adding that the real amount is $70 trillion â€“ not $16.9 trillion.
James Hamilton’s claim the United States is in a much deeper financial hole than many realize comes as Congress gets ready for another budget battle when lawmakers return in September. Both sides have been digging in on their policy positions over the debt, spending and the country’s future fiscal health.
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...more