Carmine Villani: Drowning in debt
On Feb. 19, USA Today stated in an article the financial crisis is over. But David Walker the former controller general of the United States and head of the Government Accountability Office resigned from his position after 10 years. He retired so he could speak openly about the hidden federal debt which few people talk about. In a recent interview in Arizona he said the unfunded liability problem will continue to grow by $2 to $3 trillion a year. The two biggest ones are Social Security and Medicare. In his words “we are past the tipping point.” Richard Fisher, president of the Federal Reserve Bank of Dallas, put numbers to the unfunded liabilities the government faces: Social Security, $13.6 trillion, Medicare Part A, $34.4 trillion, Medicare Part B, $34 trillion, Medicare Part C, $17.2 trillion, totaling $99.2 trillion. Part C signed into law by G.W. Bush is bigger than Social Security. This is the largest entitlement increase since 1960. Who is the biggest socialist? Obama or Bush?
This unfunded debt does not stop at $99.2 trillion, it does not include the stimulus, mortgage bailouts, bank bailouts, auto bailouts, moral obligations, the two wars, and the future debts being proposed today. U.S. government debt is rising faster than the GDP, government spending is increasing faster than income.
Remember the story of Athens? When they debased their currency, the people began to question the integrity of the money and the Golden Age of Greece came to an end. Sound familiar? The foreign investors are no longer buying our bonds, the credit rating of the U.S. may be lowered from AAA leading to higher interest rates. Learn how to protect yourself. Those using the old rules of money will watch their wealth transfer to those using the new rules of money.
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