Overblown. The breakdown, IRRC, is 11 trillion in SS liability, 15 trillion in prescription drug liability, and 60 trillion in other Medicare liability.
Primarily, it assumes that the currenty 3 trillion in the SSI fund will earn 0% interest. That is false; that is money in treasury bills, that earn interest, that must be paid out. Saying that social security is going to face problems because of interest costs is ridiculous.
It is also overblown because they assume that healthcare costs are going to skyrocket and medicare is going to continue to fund it. If Medicare really grows out of control, cuts or tax raises will be implemented. Part D was never funded anyways...
What is scarier is that the total debt is much higer. 18 trillion in federal, state, and local debt. 16 trillion in personal debt. 25 trillion in business debt.
Plan for eliminating the national debt in 10-20 years:
Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a
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