Gubment now in the hole $63.8 trillion

[DougMD]

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Leap in U.S. debt hits taxpayers with 12% more red ink



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By Dennis Cauchon, USA TODAY
[/align]Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA TODAY analysis shows.
[/align]The 12% rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security.
That's the biggest leap in the long-term burden on taxpayers since a Medicare prescription drug benefit was added in 2003.
The latest increase raises federal obligations to a record $546,668 per household in 2008, according to the USA TODAY analysis. That's quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.
"We have a huge implicit mortgage on every household in America "” except, unlike a real mortgage, it's not backed up by a house," says David Walker, former U.S. comptroller general, the government's top auditor.
FIND MORE STORIES IN:United States House of Representatives | Baby Boomer | Tax
[/align]USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions.
Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.
The numbers measure what's needed today "” set aside in a lump sum, earning interest "” to pay benefits that won't be covered by future taxes.
Congress can reduce or increase the burden by changing laws that determine taxes and benefits for programs such as Medicare and Social Security.
Rep. Jim Cooper, D-Tenn., says exploding debt has focused attention on the government's financial challenges. "More and more, people are worried about our fiscal future," he says.
Key federal obligations:
"¢ Social Security.It will grow by 1 million to 2 million beneficiaries a year from 2008 through 2032, up from 500,000 a year in the 1990s, its actuaries say. Average benefit: $12,089 in 2008.
"¢ Medicare. More than 1 million a year will enroll starting in 2011 when the first Baby Boomer turns 65. Average 2008 benefit: $11,018.
"¢Retirement programs. Congress has not set aside money to pay military and civil servant pensions or health care for retirees. These unfunded obligations

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[ipscshooter]

ORIGINAL: DougMD

"¢Retirement programs. Congress has not set aside money to pay military and civil servant pensions or health care for retirees.

I bet Congress has got enough set aside for their own programs...

[DougMD]

...with an inflation escalator, which will be needed given the FACT thatwe are headed for high, if not hyper, inflation!

[Fieldmouse]

VC has already told us that the 63 trillion number is only due to the out of control rising healthcare costs. Once Obama care kicks in, that number will balance out.

[DougMD]

Universal healthcare will only increase the costs. Some I've had discussions with said we just need to trim this and that, but doing so won't even keep the liabilities from rising, much less take them down to zero. When I ask them to do the math, they get the deer in the headlights look. They'd rather use mindless drivel to solve problems, rather than show how it can actually work with real math. Remember, those liabilities are in TODAY'S dollars. If Bernanke keeps printing, much of that is likely to increase commensurately, or services will be cut by more than will be tolerated.

[Fieldmouse]

Doug, we are in agreement. Everything proposed in Healthcare isn't addressing the cost at all. We need the government to get out of the way. Just yesterday Or the day before there is a lobbing group already for the fight to cover illegals. So despite what the Dems say, the illegals will also get covered. The good news is the fact over 70% like their current healthcare and don't want it changed. The government can't do it and support is erroding fast.

[jeepkid]

Doug, no worries. They will just print more money...problem solved[8D]

[909bowsniper]

ORIGINAL: jeepkid

Doug, no worries. They will just print more money...problem solved[8D]

This would solve Cali's problem with money...and create some capital for Obama to spend.
Maybe they should just sell California to China...I wonder what Cali would be worth to the Chinese.

[bergall]

ORIGINAL: Fieldmouse

Doug, we are in agreement. Everything proposed in Healthcare isn't addressing the cost at all. We need the government to get out of the way. Just yesterday Or the day before there is a lobbing group already for the fight to cover illegals. So despite what the Dems say, the illegals will also get covered. The good news is the fact over 70% like their current healthcare and don't want it changed. The government can't do it and support is erroding fast.

My prediction is that this will pass.
We will experience the ruination of hyper-inflation, drastically increased taxes and continued job losses.
Those of us who have 2 nickels to rub together will say "See I told you so !" and the hordes of ignorant
parasitic Obama-ites will say it's wonderful. We are witnessing the end of the republic as we know it,
IMO.

[Sharpknife]

What is interesting is the fact that the numbers qouted were from 2008. As Mouse pointed out healthcare is a large part. So what is the solution to the rising cost of healthcare? I listened to an op-ed yesterday that stated the majority of the healthcare increase was due to the fact that those without insurance were forced to wait and then seek care in an ER and that had there been an option of somekind for them to seek help initially the costs would be reduced over 60% ( don't know if that is accurate or not ). The speaker ( sorry didnt catch his name or credentials as it was on the radio) went on to say that illegals were a large portion of this as well. Since we can't deny ER care based upon those with some sort of coverage, IMHO, if the speaker was correct then we get back to the problems with illegals.
As I've stated before, put some sort of citizenship verification process in place and then jail ( long term) any employer who hires one and we will at least be making progress towards reducing the healthcare part of this deficet. One other savings is to reduce our overseas costs where we are spening over $1000.00 PER SECOND in Iraq.
In reading one of the other posts ( the one about the film paper and Chinese drywall) by prohibiting that exporter from doing business in the US we can increase our owm production and by extension reduce costs. There is enough gypsum created in the US each year to supply all our drywall needs. Yes the costs might be a bit more than mined product from elsewhere, but it all adds to the problem in the long run.