US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing

Debt - Public Domain

There are many ways to look at the United States government debt, obligations, and assets.  Liabilities include Treasury debt held by the public or more broadly total Treasury debt outstanding.  There’s unfunded liabilities like Medicare and Social Security.  And then the assets of all the real estate, all the equities, all the bonds, all the deposits…all at today’s valuations.  But let’s cut straight to the bottom line and add it all up…$89.5 trillion in liabilities and $82 trillion in assets.  There.  It’s not a secret anymore…and although these are all government numbers, for some strange reason the government never adds them all together or explains them…but we will.

The $89.5 trillion in liabilities include:

  • $20.69 trillion
    • $12.65 trillion public Treasury debt (interest rate sensitive bonds sold to finance government spending)
      • Fyi – $5.35 trillion of “intra-governmental” Treasury debt are not included as they are considered an asset of the particular programs (SS, etc.) and simultaneously a liability of the Treasury
  • $6.54 trillion civilian and Military Pensions and Benefits payable
  • $1.5 trillion in “other” liabilities http://www.fms.treas.gov/finrep13/note_finstmts/fr_notes_fin_stmts_note13.html.
  • $69 trillion (present value terms what should be saved now to make up the present and future anticipated tax shortfalls vs. present and future payouts).
    • $3.7 trillion SMI (Supplemental Medical Insurance)
    • $39.5 trillion Medicare or HI (Hospital Insurance) Part B / D
    • $25.8 trillion Social Security or OASDI (Old Age Survivors Disability Insurance)
      • Fyi – $5+ trillion of additional unfunded state liabilities not included.

Source: 2013 OASDI and Medicare Trustees’ Reports. (pg. 183), http://www.gao.gov/assets/670/661234.p

These needs can be satisfied only through increased borrowing, higher taxes, reduced program spending, or some combination.

(Read the rest of the story here…)

2 thoughts on “US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing”

  1. The numbers are meaningless. The U.S. Government has been involved in the greatest fraud the world has ever seen. Some day down this road of notorious over spending there has to be an accounting. But not today. As long as the counterfeiting legally that has gone on forever, there will be balloons and crashes. I guess that when the next one hits, it will be the biggest crash since the 1920s stock market fall.
    We will have a return to a dollar with value. When is another matter.
    The question becomes who crashes and who burns when this next crash occurs.
    What I do know for sure is that most of the parasites in Washington D.C. will have left the host long before the host crashes to the floor.
    The FALL guy is going to be anyone dependent on fixed income to live.
    It will also be every working person out there without access to professional negotiating to determine what wages they will make in the future. Most people are not working under a labor contract of any kind in today’s world. It is strictly a done deal. So these people also will be part of the fall.

    If I told someone in 1959, what the government would do in the next 55 years, they would laugh and everyone would be making signs of me being Looney Toons.
    What has happened is stranger than any fantasy or science fiction novel I have ever read.
    Romney predicted a lot of what has happened when he ran against the current President. No one believed him. They did believe the President.
    Much of what was said in the Presidential Debates last time by Mr. Romney has come true.
    I think an article on that subject might be very informative.
    I think I would entitle it: “Oh How He Lied!”

    I would make it part of the 2016 Presidential Election by the Republicans. So that no matter who ran on the Democrat Side, they will be portrayed as liars.
    Most of these campaigns are run by very good Psychologists in the form of PR Managers. Image is more important than truth. Image is what gets the electorate to vote for one person or the other.
    The art of salesmanship is: “To get someone to do something of their own free will by persuading them to do it.”

    Obviously the current President was very good at persuasion. People voted for him even though they should have known better.
    The reason Mr. Romney can never be elected to the Presidency is he has the wrong Image. And the opposition did an excellent job of portraying Mr. Romney as a ruthless business man that cost many people their jobs as he dismantled company after company to make a fortune at the cost of the average worker. That is outstanding PR on someone’s part.
    What the Republican opposition party is going to need is someone that is brutally honest about everything. It is going to take a very good PR campaign to overcome the next candidate for President from the Democratic Party.
    IF the potential CRASH occurs before the next election, the winners of course will be the opposition party in Congress. IF they resolve the problem quickly, then they have a FREE ticket into the White House now and in the future.
    And that is what all these meaningless numbers are really all about. Making the image of the next person to run for the Presidency in 2016.

  2. 2/3rds of the national debt is owned by American citizens in the form of savings bonds. This article is pure baloney scare tactics. The USA is not broke by a long shot.

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