The national debt quietly pushed past $30 trillion on Jan. 31. But that is only the tip of the debt iceberg. The American taxpayer is on the hook for a lot more than that. In his podcast, Peter Schiff said US government borrowing and spending has turned the dollar into monopoly money propped up by a massive Ponzi Scheme.
On top of the federal government’s $30 trillion of debt, you have to add state and local government debt totaling about another $3.2 trillion. That brings the total debt to GDP ratio in the US to 142 percent. Peter called this a “shockingly high number.”
Especially when the GDP is a bunch of fluff like ours. So much of our GDP is service sector. I think only 10%, if that, is from manufacturing. So, we have a very small portion of our GDP related to producing real wealth.”
But that still doesn’t reveal the entire debt story. To really understand the country’s financial health, you also have to include unfunded liabilities. These are payments the government has promised to make in the future, including Social Security and Medicare. That adds another $160 trillion in liabilities to Uncle Sam’s balance sheet.
If you take the unfunded liabilities and add them to the funded debt, you’re at nearly $200 trillion.
As Peter said, this is completely unplayable.
It’s not going to be paid. And so what’s going to happen? Well, it’s going to be…
