UC Economics Prof Says Real National Debt is $70 Trillion

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There are 300 billion stars in the Milky Way and there are 100 trillion atoms in a human cell. But here’s a number that might even make Carl “Billions and Billions” Sagan faint.

Forget the number of stars and the number of atoms. Let’s look at the number of unfunded government liabilities.

The federal government has been low-balling the public for years on how much debt it actually has, a University of California, San Diego economics professor says, adding that the real amount is $70 trillion – not $16.9 trillion.

Hamilton believes the government is miscalculating what it owes by leaving out certain unfunded liabilities that include government loan guarantees, deposit insurance, actions taken by the Federal Reserve as well as the cost of other government trust funds. Factoring in those fees brings the total amount the government owes to a staggering $70 trillion, he says.

But surely it couldn’t be that bad. Could it?

He includes the implicit mortgage guarantees of Fannie Mae and Freddie Mac: ”With the federal government today being the sole owner of Fannie and Freddie, it seems appropriate to consider both the direct debt obligations … as well as their outstanding mortgage guarantees [which are now treated] as an off-balance sheet liability.” Added together, housing guarantees ($7.5 trillion), FDIC guarantees ($7.4 trillion), Social Security ($26.5 trillion), Medicare ($27.6 trillion), and other government trust fund liabilities ($1.8 trillion) come to $70 trillion. That’s an increase of $13.5 trillion just since 2006, and is growing by more than $2 trillion a year.

But as 2016′s leading candidate would say, “What difference does it make?”

  • tokoloshiman

    it is pretty obvious that these debts can never be paid off.
    that leaves the only alternative : write them off!

    • al_kidya

      Declare bankruptcy…isn’t that what Obama is hoping for? A bankrupt nation and communist revolution like 1917 Russia or the Weimar Republic of Germany?

      • tokoloshiman

        not a communist revolution , an islamic takeover.

  • al_kidya

    “But as 2016′s leading candidate would say, “What difference does it make?””
    She may have been the leading candidate but that is fading fast.

  • herb benty

    A little old lady counting her meager coins, not wanting to spend more than she is allotted, this frugal person is smarter, and wiser than all the Government accountants, policy makers, politicians ……combined.

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