For purposes of defining a few problems let's consider that in 2010 the federal government needed to have on hand, at current treasury rates, over $62 Trillion dollars to fund its future (currently unfunded) total liabilities. Guess how much they have on hand? You guessed it, by definition of the word "unfunded" the answer is $0...Yes, you read it right, ZERO!!!
In 2010 the public debt to GDP figure sat at approximately 62%. If you throw in all the unfunded liabilities of the entitlement programs, the percentage swells to over 90%, currently. Consider that the European Union requires its members to keep their public debt to GDP figures at 60% or below to avoid penalty and even a threat to their membership and standing. Thus, at present, Lithuania could join the European Union but the United States could not. How embarrassing!!! I can't believe I am actually using the EU as a benchmark. What is the world coming to???
At the current rate of U.S. fiscal deterioration it is projected that the public debt to GDP ratio in 2040 will be 303%. Hmmm..."Houston, WE HAVE A PROBLEM!!!"
Perhaps setting a realistic target to keep our debt at or below 60% of GDP would be something to preliminarily shoot for!!! (Do you think?) Keeping our debt at or below this relative threshold would at least give us and the world some confidence that the U.S. was positioned to react to events of genuine crisis should they occur- and they will.
They always do!!!
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