The U.S. Owes $62 Trillion in Financial Promises

Out Of MoneyDennis Cauchon writes in USA Today:

The federal government’s financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.

The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.

This gap between spending commitments and revenue last year equals more than one-third of the nation’s gross domestic product.

Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.

Read More: USA Today

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  • Rex Vestri

    All the more reason we need to make giant, tax-dodging corporations pay their taxes!
    (see Bernie Sanders’ video: http://disinfo.com/2011/06/bernie-sanders-reveals-the-top-corporate-tax-avoiders/)
    Plus, we need to end the Shrub tax cuts for the rich, cut military spending, and pull out of NATO.

  • Rex Vestri

    All the more reason we need to make giant, tax-dodging corporations pay their taxes!
    (see Bernie Sanders’ video: http://www.disinfo.com/2011/06/bernie-sanders-reveals-the-top-corporate-tax-avoiders/)
    Plus, we need to end the Shrub tax cuts for the rich, cut military spending, and pull out of NATO.

    • GoodDoktorBad

      Those are mere appetizers, but would make a good start to a greater feast.

    • SF2K01

      I agree they need to pay, but we also need to cut programs we clearly can’t afford like Social Security which is on par with the defense budget in total cost (which should also be reduced to an affordable level)!

      • Rex Vestri

        Yeah…we need to gut Social Security, do away with the last vestiges of the social safety net programs we have and throw grandma out into the street, hungry.

        Idiot. You must’ve heard that on FOX “News” Channel.

        Social Security isn’t what got us into this mess. It’s fighting Bush’s two illegal wars, together with corporate welfare, and TARP. Not entitlements.

        • Andrew

          Money is nothing more than a medium of exchange anyways.

          • Liam_McGonagle

            And store of value and unit of account . . .

            Just being an ass.  Your main point that it’s a pretty fragile social construct is excellent.  And I like the emphasis on its role as a medium of EXCHANGE.

            Funny how so-called economics geniuses like Paul Ryan think that the utility of a medium of exchange would be enhanced by brutal application of a management philosophy that amounts to hoarding.

          • Andrew

            Exactly.  Money saved helps the economy not at all.

            Ryan is just another plutarchist mammon worshipper.

        • SF2K01

          No, everything got us in this mess and it doesn’t help that we’ve been letting rich people/corps get away with giant tax cuts. Social security is just one of many many things that we spend too much money on, and as I mentioned it takes the same percentage of the budget as all defense, not just the wars. We simply can’t afford to give all retired people the 615 billion per year (Both of bush’s wars cost only double that number for the entire past decade) while we’re 12 trillion in the hole. I don’t know why you call it the last vestige of social safety net programs when it was especially the first of them.

          Bush spent tons of money on 2 useless wars and in the first year of presidency Obama borrowed more than that just to play tiddlywinks with the economy to bail out big businesses and banks. You think either guy gives a crap about you? They’re just out there to blow our money, democrat or republican, the only difference is what they blow it on. Don’t fool yourself to think otherwise.

        • Pursue Truth

          Rex, In fact: Bush’s “two illegal wars”, corporate welfare and TARP combined are less than 5% of the problem.

          If you pursue the truth just a little, you’ll note Medicare is 75% of the problem, and Social Security is 15% of the problem.  So more than 90% of the problem is exactly entitlements.  And that’s not according to FOX, but the GAO.

          Some mislead themselves and others driven by ideological dogma. And there are a few who even embrace anarchy. The prior can no longer be your excuse.

  • Anonymous

    Those are mere appetizers, but would make a good start to a greater feast.

  • Hadrian999

    comes a point when you are so far over the line nothing matters anymore
    worrying about debt now is kinda like worrying about littering when you’ve already shot a cop

  • Hadrian999

    comes a point when you are so far over the line nothing matters anymore
    worrying about debt now is kinda like worrying about littering when you’ve already shot a cop

  • Anonymous

    I agree they need to pay, but we also need to cut programs we clearly can’t afford like Social Security which is on par with the defense budget in total cost (which should also be reduced to an affordable level)!

  • Rex Vestri

    Yeah…we need to gut Social Security, do away with the last vestiges of the social safety net programs we have and throw grandma out into the street, hungry.

    Idiot.

    Social Security isn’t what got us into this mess. It’s fighting Bush’s two illegal wars, together with corporate welfare, and TARP. Not entitlements.

  • Andrew

    Money is nothing more than a medium of exchange anyways.

  • Anonymous

    No, everything got us in this mess and it doesn’t help that we’ve been letting rich people/corps get away with giant tax cuts. Social security is just one of many many things that we spend too much money on, and as I mentioned it takes the same percentage of the budget as all defense, not just the wars. We simply can’t afford to give all retired people the 615 billion per year (Both of bush’s wars cost double that number for the entire past decade) while we’re 12 trillion in the hole. I don’t know why you call it the last vestige of social safety net programs when it was especially the first of them.

    Bush spent tons of money on 2 useless wars and in the first year of presidency Obama borrowed more than that just to play tiddlywinks with the economy to bail out big businesses and banks. You think either guy gives a crap about you? They’re just out there to blow our money, democrat or republican, the only difference is what they blow it on. Don’t fool yourself to think otherwise.

  • Anonymous

    And store of value and unit of account . . .

    Just being an ass.  Your main point that it’s a pretty fragile social construct is excellent.  And I like the emphasis on its role as a medium of EXCHANGE.

    Funny how so-called economics geniuses like Paul Ryan think that the utility of a medium of exchange would be enhanced by brutal application of a management philosophy that amounts to hoarding.

  • Simiantongue

    We’re in this mess because our Vassal Sates are skimping on their tributes. We need to put our foot down and tell them so. Or we’ll bring them democracy and freedom.

    Sarcasm off/

  • Simiantongue

    We’re in this mess because our Vassal Sates are skimping on their tributes. We need to put our foot down and tell them so. Or we’ll bring them democracy and freedom.

    Sarcasm off/

  • Pursue Truth

    Rex, In fact: Bush’s “two illegal wars”, corporate welfare and TARP combined are less than 5% of the problem.

    If you pursue the truth just a little, you’ll note Medicare is 75% of the problem, and Social Security is 15% of the problem.  So more than 90% of the problem is exactly entitlements.  And that’s not according to FOX, but the GAO.

    Some mislead themselves and others driven by ideological dogma. And there are a few who even embrace anarchy. The prior can no longer be your excuse.

  • Andrew

    Exactly.  Money saved helps the economy not at all.

    Ryan is just another plutarchist mammon worshipper.

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