Saturday, July 28, 2007

America : The World's Biggest Credit Risk

Yes -- We Are Likely Now The World's Biggest Financial Problem. That's the general warning from the vice chairman of Goldman Sachs,one that our Zombie Media would prefer not talk about.

"America's new faith-based guns-and-butter policy is hurting both guns and butter. The war is costing us $12 billion a month. Hormats examined the Congressional Budget Office's projections for domestic costs: "In 2006, spending on Social Security, Medicare, Medicaid and interest on the federal debt amounted to just under 60% of government revenues" and "if they continue on their current path, they will account for two-thirds by 2015." Social security from $550 billion to $960 billion

Medicare from $372 billion to over $900 billion
Medicaid from $181 billion to $390 billion

Worse yet, these commitments will continue skyrocketing in later decades. The CBO projects the federal debt rising from 40% of GDP to 100% in the next 25 years: "Continuing on this unsustainable path will gradually erode, if not suddenly damage, our economy, our standard of living, and ultimately our national security."

Of course these numbers don't include or to quantify or off the books debt and the government, unlike companies doesn't even try to report that number.

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