That’s counting unfunded Social Security and Medicare liabilities and it shows just how big the Obama DebtHole is becoming.
John Williams, writing at ShadowStats.com, used the Treasury Department’s latest financial statements and calculates the true 2012 federal deficit, which includes the net present value of unfunded liabilities like Social Security and Medicare) at: $6.9 trillion.
In 2011, using GAAP accounting, the federal deficit was: $5.0 trillion. Which means the annual deficit grew at a rate of nearly 30 percent in one year.
And the hole is only getting bigger because we’re running out of productive workers. While the government class is increasing and we have large numbers of immigrants who mainly work low paying or government jobs, we don’t have much of a private sector left. And the private sector is being cannibalized by the government class.
In 1945, there were 42 workers for every retiree receiving Social Security benefits. Today, that number has fallen to 2.5 workers, and if you eliminate all government workers, that leaves only 1.6 private sector workers for every retiree receiving Social Security benefits.
Government pensions in states like California with a huge government and welfare class will fall first. Then everything else goes.
Obama knows quite well that he’s spending money that can never be repaid. That’s why he’s spending the money. Because it’s his last chance to spend it.
The guy who knows that the shipwrecked boat is in the middle of the Atlantic Ocean is going to eat up all the rations because he knows that there’s no rescue coming so he might as well pig out and position himself to survive as long as he can.