News of the Day ... In Perspective11/08/2005
U.S. fiscal future “worse than advertised,” comptroller general says
On top of the gross national debt of $8 trillion, other unfunded liabilities—as from promises made to Social Security and Medicare beneficiaries—are expected to reach up to $50 trillion by the end of 2005. That is $166,000 for each of 300 million Americans.
“The facts are not partisan, and they’re not ideological,” stated Comptroller General David Walker. He believes that proposed congressional budget cuts are merely symbolic.
We don’t just “owe the money to ourselves”: 46 percent of U.S. federal debt is now held by foreigners, especially the governments of Japan and China.
“Unless the situation is reversed, at some point, these budget trends will cause serious economic disruptions,” stated Federal Reserve Chairman Alan Greenspan to the Joint Economic Committee on Nov 3.
Left unchanged, Medicare promises will consume all federal revenues over the next 75 years, leaving nothing for national defense—or anything else (Knight Ridder Newspapers 11/6/05).
“Medicare beneficiaries have to adjust their expectations, say Trustees,” News of the Day 4/7/05.
“Bankruptcy,” AAPS News, March 2005.