National debt as %GDP -- reported vs. real
Although I've mentioned it in other publications, this is a short special note to put the national debt into real perspective vs. the way government and sycophantic journalists report it. Reports typically put the debt at 60-70% of GDP. This figure is only what the government calls "outside debt." In fact, what we owe to the "outside" creditors (China, Japan, Sovereign gov't funds etc) plus over $5 Trillion on internal balance sheets, mostly social security trust fund bonds, is 100% of GDP -- $14 trillion debt and $14 Trillion GDP. Now the really bad news....If we add to these debts already entered onto our "balance sheets" $60 Trillion in unfunded entitlements committed by statute, but not included in any reported statistics, the debt is more than 400% of current GDP. Given the nature of the economy now, with major structural problems and government pressure there is no way GDP can grow to meet commitments already made, much less satisfy the voracious appetite of Obama and congress for new spending. It's impossible to envisage a resolution of this dilemma. For sure, Obama and those in control in congress now show no understanding of the magnitude of this problem -- or they just don't give a damn! I have always been reluctant to buy into conspiracy theories....but it is becoming more and more difficult to discount them. It is just unrealistic to think that people intelligent enough to get into their positions are too stupid to understand such basic facts. Seems to be deliberate malfeasance. Help me understand if I am wrong in my thinking. Thanks for reading.