A Reminder The US Will Never Pay Off Its Debt

From the Rare blog:

Your share of the national debt is now $1.1 million

Each U.S. taxpayer now has a federal-debt liability of $1.1 million, and rising.

Remember that when President Obama boasts that the federal deficit—the shortfall between annual revenues and spending—is declining. Of course, the primary reason for the decline is the sequester, which was his idea but now adamantly opposes.

The public tends to focus on the total national debt, which just passed the $17 trillion mark—up from $10.6 trillion when President Obama took office. But that figure pales in comparison to the federal government’s long term unfunded liabilities—money the government is obligated to pay over and above the revenues it is estimated to receive.

According to the U.S. Debt Clock, total long term unfunded liabilities are at $126 trillion, a $1.1 million liability for each U.S. taxpayer.

The main driver of that astronomical number is two of our major entitlement programs: Social Security and Medicare.

The Debt Clock says Social Security is looking at $16.6 trillion in unfunded liabilities, while Medicare faces $87.6 trillion. And Medicare’s prescription drug benefit, which passed in 2003, adds another $22 trillion…

If you believe the United States will ever pay off its debts, you must be smoking whatever it is that keeps Nancy Pelosi, Harry Reid, Barack Obama and the rest of the political leadership of this country blissfully journeying down Hope-and-Change Boulevard to the land of unicorns and unending chocolate rivers.

Boston University economist Laurence Kotlikoff estimated the national fiscal gap at $222-trillion almost one year ago—that comes to just over $700,000 for every man, woman, and child in this nation today. If we go by the “per taxpayer” calculation, we’re a few thin dimes beneath $2-million each.

Simple mathematical reality screams that default is the only possible endgame here–either through a hard crash and debt-repudiation, or destruction of the currency. Unless, of course, you have $2-million to pay your “fair share,” and an extra several million to cover me and my friends. If so… I’d love to speak with you.

If not, I ask: Are you financially and otherwise prepared to survive the economic storm that’s headed this way? Have you taken any steps to avoid the coming plans for bank “bail-ins” and IMF “super taxes”?

Don’t let paralysis keep all of your assets in harm’s way—no matter how much, or how little you have.