Thursday, May 28, 2009

THE COMING FINANCIAL STORM

As of 2008:

  • Social Security's unfunded liabilities stood at $13.6 trillion.
  • Medicare's unfunded liabilities are more than $30 trillion.
  • Medicaid, another severely underfunded and politically untouchable entitlement program, only adds to the total.
  • The federal government's current entitlement bill, including future obligations-based only on promises it has made in the past -- is greater than $57 trillion.
"78 million people are going to stop working, stop paying taxes, stop paying into retirement programs and start drawing benefits. The problem is neither Social Security nor Medicare is ready for them. The federal government has made explicit and implicit promises to millions of people, but has put no money aside in order to keep those promises."

According to a recent forecast by the Congressional Budget Office -- an economic forecasting agency that is controlled by the Democrats in Congress -- shows that Medicare and Medicaid alone are going to crowd out everything else the federal government is doing by mid-century.

And that means everything-national defense, energy, education, the whole works. We'll only have health care, says Kinnaman.

[And this without Obamacare - add that in and everything accelerates. Brilliant.]

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