Not exactly news, but worth repeating;
Hamilton believes the government is miscalculating what it owes by leaving out certain unfunded liabilities that include government loan guarantees, deposit insurance, and actions taken by the Federal Reserve as well as the cost of other government trust funds. Factoring in those figures brings the total amount the government owes to a staggering $70 trillion, he says.
[...]
"The biggest off-balance-sheet liabilities come from recognition of the fiscal stress that will come in the form of an aging population and rising medical expenditures," Hamilton says, adding, "It is worth noting that there are many historical episodes in which off-balance sheet liabilities ended up having quite significant on-balance sheet implications."
h/t peterj
The vast majority of those liabilities will never materialize - the govt will change the rules regarding pensions, Medicare and other entitlements before the bill has to be paid.
What remains will be paid using deflated dollars.
Either way - if you are holding a US IOU you will not get repaid in the manner you anticipate.
And for more than a hundred million Americans that means a far more miserable retirement than they feel entitled to. The political fallout from that is anyone's guess...
Default America: Entitlement Albatross
http://www.youtube.com/watch?v=Bpfi0MAq38Y
Depressing but true. Thanks.
Government appears to be in the business of lying.
Not miss calculating, flat out lying.
They cannot admit the current status.
They took the money by force, Taxation.
On the promise of services to come, healthcare, old age pension, welfare....
But there is no doubt they can afford none of the promised services as they can barely meet the payroll and pensions of their minions.
The hand outs for their special friends.
To admit the breech of contract status honestly, would cause lazy and complacent taxpayers to ask the obvious, "What do we need you government clowns for?
You take the wealth, but cannot maintain law or order, cannot keep your word and always insist on stealing more.
So no, there is no miscalculation involved.