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Is Amercia bankrupt??

Following on from yesterday , I discovered a 23 page report by Professor Laurence J. Kotlikoff who is a professor of Economics at Boston University. He has had at least 355 papers published by the Federal Reserve over several years. So he basically knows what he is talking about, I think we can deem him an expert on Economics!

His paper basically concludes that America is heading towards an economic meltdown/

His main conclusion is "Countries can and do go bankrupt. The U.S., with its $65.9 trillion fiscal gap, seems clearly headed down that path."

This fiscal gap (The Fiscal Gap is the result of state general fund recurring revenue not being large enough to pay for ongoing state general fund spending) is 5 times the amount of the US's GDP ( $12.49 trillion 2005 est) and twice as large as the US's national wealth!

So the big question you have to ask yourself here is, how the heck are they are going to recitfy such a situation??

Koltikoff offers three solutions:

1) Immediate and permanent doubling of personal income and corporate taxes
2) Immediate and permanent 2/3rds cut in Social Security and Medicare benefits
3) Immediate and permanent cut federal spending by 143% if feasible.

Doesn't look too good does it? Watch out for hyperinflation which will result in the total destruction of the middle class and make everybody poor, apart from the filthy rich, who will get richer! This will be the equivalent of what happened in Germany during the great depression. See here as well.

Oh good to see Amercia's media totally ignored this report, you'd think it would be important news!

Still, download and read the report here

UK newspaper report here and another report and analysis here

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