America going broke?

http://articles.moneycentral.msn.com/Re ... spx?page=2

News reports regularly inform us of the growing federal deficit, projected at a stunning $1.75 trillion for fiscal 2009 and $1.17 trillion for 2010. But regularly reported, less visible government obligations have been growing much faster.

In the nearly five years from January 2003 to December 2007, the Medicare trustees reported that the unfunded liabilities of Social Security and Medicare grew by a stunning $10.4 trillion. The average annual growth topped $2 trillion.

These numbers seem to support the ones in "IOUSA" so I don't doubt them.

Question is, what do we do about it?

Here's what happens if we do nothing.

According to the Federal Reserve flow-of-funds figures for year-end 2007, our collective net worth as consumers was $62.7 trillion. By the end of 2008, the same figure had fallen to $51.5 trillion. Another year of growth for Social Security and Medicare liabilities would bring total unfunded government promises to about $46 trillion. That's nearly 90% of our net worth.

If consumer net worth fell an additional $5 trillion -- the same amount it fell in the last three months of 2008 -- we'd be broke.

That seems scary to me.

so it would make sense that we shouldnt be spending trillions more with obamas bail out packages. Spending money you dont have is never a good idea. If you ran your household like the new govt is running washington, you would be in debt up to your eyeballs and all of your possessions including your house would be taken from you. We are being asked to sacrafice maybe our govt should do the same.

they say the only way out of this is to print more money. I think that is what got us into this problem. The only way out is to be fiscally conservative. We should try running dc like reagan did. seemed to work out pretty well for him.

Going broke? The Government has been broke for a long time. The house of cards is now starting to shake.

Mike

The final nails in the coffin of US economic preeminence will be Universal Health Care, the Obama Tax hikes, the obsessive deficit spending and money creation of the Obama administration and the resultant hyperinflation, the second wave of the current mortgage crisis fiasco, cap and trade legislation, union dominance of labor through card check, the resulting fall of the US dollar and its demise as a reserve currency and, if we survive that long, the peak of the baby boomer retirement years (2015-2018).

If we are all Keynesians now, none of us will be Keynesians then.

I've noticed over the last week or so that BO is looking to cut unnecessary spending isn't that wonderful of him doesn't BO deserve a atta boy for finally keep one of his promises. The way I see it is that all that pork BO allowed thru in all of the bills he signed are going to take a hit and all the radical left liberals will pat themselves on the back on what a wonderful job that BO is doing to cut spending. I hope everybody else sees the truth in what is really happening. I can't wait to see the radical lefts comments on this one. I also wonder why our radical left government didn't voluntarily take a pay cut as most of us had no choice in to show their support for the debt they caused (both parties).


Bill S.

BillMarti wrote:I also wonder why our radical left government didn't voluntarily take a pay cut as most of us had no choice in to show their support for the debt they caused (both parties).

Agreed. But, I think that it doesn't matter who controls Congress (left or right). They ALWAYS vote themselves a pay raise.

This may have already been posted here, but if not... ... here's a to-scale representation of the budget cuts proposed, as compared to the proposed budget size:

I was thinking when I started reading about the cuts Obama is going to make that they seemed woefully undersized compared to what we need. That little picture says it all.

The $100,000,000 budget cut out of a $3,690,000,000,000 budget. Are you smarter than a 5th grader? Remember reducing to lowest terms, lets remove zeros from the end. Let's try removing eight zeros, that will give us lowest terms. one hundred million becomes one dollar, three trillion sixty-nine billion becomes thirty-six thousand nine hundred dollars. That publicity stunt will only save one dollar out of $36,900. Any fool at a used car lot will be able to cut at least $5,000 off that price. They must think we are stupid.

Hey speaking of broke I just got my Social Security Benefits statement. Good news is when I retire in 42 years (I'll finally be 67 woo-hoo!) I'll get a nice chuck of change.

Bad news? They also sent a piece of paper saying that medicare will be insolvent by 2037 now. I guess it's nice they at least admit it now.....

Agreed. But, I think that it doesn't matter who controls Congress (left or right). They ALWAYS vote themselves a pay raise.[/quote]
Congress doesn't have to vote themselves a pay raise anymore. Everytime they voted themselves a pay raise they took too much heat from the public. So, they passed a bill that gives them their pay raises automatically without a vote and eliminated that pesky public outrage. I shoulda been a congressman but my parents raised me better than that!

America going to BROKE? that could be so scary huh. I guess that could be affecting every family now on America... How this could be happening now...