$200 Trillion

[indianinvest]

Mr Kotlikoff says the debt is actually $200 Trillion.

Mr Moylan says the number is likely about $60 Trillion.

Ron Paul: "The U.S. Government Must Admit It Is Bankrupt". Ron Paul is a politician in USA.

"The Government is lying about the amount of debt. It is engaging in Enron accounting," said Laurence Kotlikoff, an economist at Boston University and co-author of The Coming Generational Storm: What You Need to Know about America's Economic Future.

THE actual figure of the US' national debt is much higher than the official sum of $US13.4 trillion ($14.3 trillion) given by the Congressional Budget Office, according to analysts cited on Sunday by the New York Post.

http://www.blacklistednews.com/?news_id=10626

http://www.zerohedge.com/article/ron-paul-us-government-must-admit-it-bankrupt

 

[indianinvest]

Geithner Says U.S. Insolvent

The U.S. government is insolvent. Who says so? Timothy F. Geithner, the U.S. Secretary of the Treasury.

Geithner sent a letter to Congress on Jan. 6, 2011 asking for the debt limit to be raised. If it is not raised, he warned, the U.S. will default on its debt. In his words:

Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States."

He didnt say that the government will be inconvenienced. He didnt say that the government would be forced to muddle through by delaying payments, raising taxes, and cutting non-obligatory programs and services. He said the government will default. This means that the government doesnt have enough cash to pay its obligations to the many and sundry persons to whom it owes cash unless Congress authorizes an issue of even more debt.

After the government issues the new debt, its overall debt will be even higher than before. Unless its obligations that require cash payments are reduced, or unless it finds new sources of revenue, or unless the interest rates that it pays decline, the same situation will surely occur again and occur even faster because its overall debt will have risen. It will run short of cash to pay its obligations.

Suppose that you had a debt of $10,000 that required a payment of $500 in order to stave off your creditors seizing your assets. Suppose that you didnt have the $500. One way out would be to borrow $500 from a new lender and use that $500 to pay off the old lenders. That buys you time. However, now you have debts of $10,500. You have to find ways of lowering this or else you will again be faced with an even worse situation.

http://www.lewrockwell.com/rozeff/rozeff338.html