Debt and the USA Plan
You look up “US National Debt” on Google and Google says it is just over $20 trillion in November 2017. This is an outrageous lie told so often that even Google believes it. And just about everyone else. The $20 trillion comprises what is called “Funded Debt”.
Most citizens think this amount is just outrageous. But the facts are the US Debt today is closer to $130 trillion. The $20 trillion figure is just the financial obligations of the US Government that mature in one year or less. Most of these obligations are repaid by proceeds from newly issued bonds, bills, etc. from the US Treasury.
The $110 trillion difference is termed the “Unfunded Debt” and is computed by actuaries to be the shortfall between what the US must pay out in benefits less the anticipated payroll tax receipts (both discounted by an assumed interest rate from the year such payments need to be made to the present day).
The Unfunded Debt mostly includes Social Security, Medicare, entitlements, and other obligations to be paid in the future for current and future recipients. Now Congress, the Media, and Academia wants people (you know “We the People”) to know that the $110 trillion is only promises. The Congress can cancel Social Security and Medicare payments any time it wants.
Right! And pigs can fly.
Now that didn’t go over well with the AICPA (American Institute of Certified Public Accountants). On the US Debt Clock site, they endorse the validity as incurred debt the amount listed as “Unfunded”. That means our real debt is $130 trillion or so.
For a better understanding of what a lie the $110 trillion is, revisit the Bankruptcy of General Motors. The company went bankrupt in major part because it owed $50 billion to auto union pension funds. If GM could have used the same misleading government accounting rules, they wouldn’t have owed $50 billion. Maybe the one-year obligation was only $4 billion.
Just to illustrate how seriously the People have been deceived and been put in an untenable situation know that the Gross Domestic Product of every nation on Earth combined is projected to be $78 Trillion in 2017. That means it would take the entire world’s GDP output for a little over two years just to pay off our debt. This as a tragedy of epic proportions.
As I have mentioned many times on this site every government in history has employed the “Trickle-down Theory of Economics”. That is, the elites take what wealth they want from economic activity and leave the rest to trickle down to the people.
It could be said that it was the “Trickle-down” deficiency in capitalism that led to the US’s $130 trillion debt. There are many to blame. Yet public opinion drove legislators to create safety nets like Social Security, Medicare, Medicaid, housing, food, and welfare and 80 or so entitlement programs. Some can rightly say that the costs of these safety nets have put the people (“We the People”) into a state of bankruptcy.
For example, on the US Debtclock.org website, various elements of the people’s wealth is totaled. For example, the wealth of all small businesses, corporations, and households is estimated to be $135 trillion. If our real US debt according to Generally Accepted Accounting Principles (GAAP)is north of $130 trillion that means THE PEOPLE essentially have no net worth after 241 years of trying.
This a disastrous result. It needs the attention of every American. We here at the Prosperity Commission will be leading the charge to correct this situation. As the politicians have failed to solve the problem, it is up to the people to have a plan that does. The Prosperity Commission advances the USA Plan to solve this and a myriad of problems enumerated throughout this site. Its main goals are:
- To increase the net worth of Americans by over $1,000 trillion
- To extinguish all US Debt obligations.
Both the Rise-Up Theory of Economics and the US Plan are thoroughly covered elsewhere on this site. How the Plan suggests we solve the Debt problem is covered at Debt Cut by USA Plan.
If the people think $20 trillion is outrageous what do you think they will say to $150 trillion.
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