"If you’re rich you get a bailout. If you’re poor you get a handout. And if you’re middle class you get left out. " That's not a sustainable way to run the system, exclaims investment strategist Keith Fitz-Gerald. From Peak Prosperity.
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US Unfunded Liabilities Top $238 TRILLION!!
In an excellent economic lecture series presented by the BBC, economic historian (& author of the recent Newsweek piece Hit the Road Barack) Niall Ferguson states that the total US unfunded liabilities is a mind-blowing $238 TRILLION- over 16 times the total US debt claimed by the Treasury Department of $16 trillion!!Can you say QE to INFINITY….AND BEYOND!!! ? There is simply no other viable solution.
The rapidly rising quantity of these bonds certainly implies a growing charge on those in employment, now and in the future, since – even if the current low rates of interest enjoyed by the biggest sovereign borrowers persist – the amount of money needed to service the debt must inexorably rise.
But the official debts in the form of bonds do not include the often far larger unfunded liabilities of welfare schemes like – to give the biggest American schemes – Medicare, Medicaid and Social Security.
The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues is $200 trillion, nearly thirteen times the debt as stated by the U.S. Treasury.
But the official debts in the form of bonds do not include the often far larger unfunded liabilities of welfare schemes like – to give the biggest American schemes – Medicare, Medicaid and Social Security.
The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues is $200 trillion, nearly thirteen times the debt as stated by the U.S. Treasury.
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Looking For A Path That Does Not Exist
This is a quote form Dallas FED Fisher (lifted from Mauldin's Frontline, well worth reading entire piece. I am sure it is on web somewhere too)
"It will come as no
surprise to those who know me that I did not argue in favor of additional
monetary accommodation during our meetings last week. I have repeatedly made it
clear, in internal FOMC deliberations and in public speeches, that I believe
that with each program we undertake to venture further in that direction, we are
sailing deeper into uncharted waters. We are blessed at the Fed with
sophisticated econometric models and superb analysts. We can easily conjure up
plausible theories as to what we will do when it comes to our next tack or
eventually reversing course. The truth, however, is that nobody on the
committee, nor on our staffs at the Board of Governors and the 12 Banks, really
knows what is holding back the economy. Nobody really knows what will work to
get the economy back on course. And nobody – in fact, no central bank anywhere
on the planet – has the experience of successfully navigating a return home from
the place in which we now find ourselves. No central bank – not, at least, the
Federal Reserve – has ever been on this cruise before."
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Simplest, shortest possible explanation of our National EconomicDilemma ... here....
http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0
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