FAQs Frequently Asked Questions
Q:You said that US debt was closer to $70 trillion compared to the $15 trillion figure that is out on the news. Please explain.
Also, with the nonsense about the minting of a 1 trillion dollar platinum coin, how would that affect the markets? Would we see a massive spike in inflation, or just a small bump up?
A:The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already are at $86.8 trillion, or 550% of GDP. Why haven't we heard about the titanic $86.8 trillion liability from these programs? Well, The actual figures do not appear in black and white on any balance sheet. But if you look at the annual Medicare Trustees' report you will see separate actuarial estimates of the unfunded liability for Medicare Part A (the hospital portion), Part B (medical insurance) and Part D (prescription drug coverage).
As of the most recent Trustees' report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion.
|First published:||10 Jan 2013|
|Last updated:||10 Jan 2013|