The U.S. is spending itself into its own version of a bankrupt Greece and other overseas countries. The problem: Unlike Greece and the others, the free world depends on us and the sanctity of our dollar and its convertibility.
The reported federal) debt only tells us what the government partially owes to the public. It doesn't account for hidden obligations, nor to what's owed to seniors, veterans, and retirees.
The federal government financial condition worsened drastically last year, beyond the new debt taken on to meet the budget deficit
The deficit between spending commitments and revenues last year now equals more than one-third of the America’s gross domestic product.
Corporations would be required to count these new liabilities when they are taken on
or borrowed.
The administrations still insists that future growth will cover this gap. But we are talking about years and years of at least 5% to 7% annual GDP growth. This is unlikely when there is nothing in the future to entice a vibrant economy but job-defeating inflation, higher interest rates that accompany inflation and the specter of higher taxes and regulation.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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