The United States is bankrupt and the 21st Century will pay the price.
The federal government’s debt of $210 trillion, created by a failure to set aside funds for social security and Medicare, is more than two times greater than all of the personal wealth of all Americans combined. The debt is 11 times greater than the debt of a country in bankruptcy. The debt is more than 20 times greater than the mortgage debt on every American home (Please see the chart above and source notes below.).
The debt is gargantuan and cannot be repaid except through bankruptcy and failure.
The Democratic Party, led by the progressive Big Media, whose signature legislation is social security and Medicare, has bankrupted the wealthiest country in the history of the world. The “social justice” initiatives of President Roosevelt and Johnson will end by creating the greatest financial crisis in world history. The Roosevelt-Johnson global depression will spread poverty, misery, and violence far and wide.
Proof will be given again that socialism bankrupts host countries. America is going to learn the hard way. The world will be forced to go with us for a very long ride.
The Democratic Party, led by Big Media, will bury the monumental failure of its progressive economic policies until the cities are burning; when the fallout of their lies will be trivialized by anarchy. Their infamy will be preeminent in the 21st Century.
For a fuller analysis of the chart above, please see the first post in the America the Beautiful Bankrupt series.
Sources & Notes:
- Federal debt: the fiscal gap = $210 Trillion. 1. “total government indebtedness”. America’s Hidden Credit Card Bill, July 31, 2014, Laurence Kotlikoff, New York Times. 2. The present value of the total amount by which future federal expenses exceed federal revenues. See “America’s Fiscal Insolvency and Its Generational Consequences, Testimony to the Senate Budget Committee.” Laurence J. Kotlikoff, Professor of Economics, Boston University, Feb 25, 2015.
- Total wealth all Americans: $88.087 Trillion. Household Net Worth. Federal Reserve Statistical Release. June 9, 2016. Rounded to $90 trillion.
- Total home mortgage debt: $9.994 Trillion. Federal Reserve Statistical Release. June 9, 2016. Rounded to $10 Trillion.
- “two times greater than all of the personal wealth of all Americans”: $210 trillion federal debt / 90 trillion total wealth = 2.3 – rounded down 2.
- “11 times greater than a country in bankruptcy”: Assuming a country has reached the sustainable limit of debt when debt equals 100% of GDP. $210 trillion debt / $18.2 trillion GDP = Debt 11.5 times greater than GDP. Rounded down to 11. Loosely based on “This Time is Different” by Carmen Reinhardt and Kenneth Rogoff.
- “more than 20 times greater than the mortgage debt on every American home.” $210 trillion federal debt / $10 trillion total home mortgage debt = 21 times. Rounded down to 20.