Behind the Headlines Video
If you think for a minute that the national debt of $16 trillion dollars or $45,000 per person is scary, think again. It is only the tip of the iceberg of America's indebtedness. In addition to the official national debt, the U.S. government and state governments have additional off-balance sheets with unfunded obligations estimated to be as much as $100 to $150 trillion. This equates to half a million dollars per person. These obligations include unfunded pension liabilities, social security, Medicare, Medicaid and state unfunded liabilities.
If American politicians don't restructure the government's promises, it is only a matter of time before our nation goes broke. The only thing keeping America from going totally bankrupt is the Federal Reserve Bank. Over the last three years, the Fed has bought about half of America's debt. Where does the Fed find the money to fund our debt? It prints it like there is no tomorrow! Our only constraint on runaway inflation from this increasing money supply is a stagnant, deflationary economy. When the economy truly begins to recover, expect the chickens to come home to roost with inflation roaring back like the Falls of Niagara. At that point, America will begin to pay her bills. Sadly "we the people" paying the bills will be the middle class' savings and fixed salaries. Inflation will decimate the value of their savings, salary, and lifestyle.
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