The actual liabilities of the federal government---including Social Security,
Medicare, and federal employees' future retirement benefits---already exceed
$86.8 trillion, or 550% of GDP.
For the year ending Dec. 31, 2011, the annual accrued expense of Medicare
and Social Security was $7 trillion. Nothing like that figure is used in calculating
the deficit. In reality, the reported budget deficit is less than one-fifth
of the more accurate figure.
... if the government confiscated the entire adjusted gross income of these
American taxpayers, plus all of the corporate taxable income in the year before
the recession, it wouldn't be nearly enough to fund the over $8 trillion per
year in the growth of U.S. liabilities.
Some public officials and pundits claim we can dig our way out through tax
increases on upper-income earners, or even all taxpayers. In reality, that
would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing
these unsustainable spending commitments can the nation's debt and deficit
problems be solved.
If that was only the problem we could consider it frightening. However when
you consider all the off-balance sheet deceptions going on it becomes truly
- Unfunded Liabilities
- Contingent Liabilities
- Contractual Obligations
- Special Purpose Entities
- PPP - Public Private Partnership
- PFI - Private Finance Initiative
Gordon T Long and John Rubino, with the aid of 23 slides put a magnifying
lens on these carefully crafted accounting gimmicks, solely intended to obscure
the true liabilities that every tax payer is on the hook for.
23 Minutes, 26 Slides