Friday, September 7, 2012
The Mountain of debt
We have reached a milestone, so to speak of having the highest amount of debt in the world (or maybe in the history of the world) and still we keep on ignoring this issue. Here both the political parties are at fault, one trying to reduce taxes and the other trying to raise in order to fund their spending. The say the least $16 Trillion dollars and counting is no small amount even for a country with almost equal amount of GDP. And this is the debt which is visible to us and is talked about most. But what is not talked about it (only in certain quarters) is the huge unfunded liability that we are approaching fast. That is the pensions, social security, Medicare and Medicaid. Who is going to pay for this is anybody's guess. As I have written numerous times in my blog, nobody is ready to speak the truth or take harsh measure to correct this huge problem. But every special interest group is trying to defend their turf and refusing to acknowledge that this mountain of debt is insurmountable unless drastic changes be done to the unfunded portion of the debt. Every politician who is trying to get votes always tend to defend this unfunded liabilities and show the optimistic side of the future for voters who are most likely to vote-the seniors, but what about the young people who are sharing this burden for now and for the future, there is no answer. So we have to see how fast we approach the next trillion dollars in debt.