Financial Speech for the Ages… Uh Oh!

Well, David Walker has been warning us.  From a fiscal point of view, we as a country are in serious trouble. Last night, someone on Fox News (wish I could remember who) stated that the United States of America may have passed a point of no return.

And now there is this… Richard W. Fisher (President and CEO of the Federal Reserve Bank of Dallas)… We face a national debt of $53 trillion to $58 trillion for social security/medicare/medicaid alone? Ha! Try $99 trillion. Here’s a couple of snippets:

The good news is this Social Security shortfall might be manageable. While the issues regarding Social Security reform are complex, it is at least possible to imagine how Congress might find, within a $14 trillion economy, ways to wrestle with a $13 trillion unfunded liability. The bad news is that Social Security is the lesser of our entitlement worries. It is but the tip of the unfunded liability iceberg. The much bigger concern is Medicare, a program established in 1965, the same prosperous year that Bill Martin cautioned his Columbia University audience to be wary of complacency and storms on the horizon.

and:

Please sit tight while I walk you through the math of Medicare. As you may know, the program comes in three parts: Medicare Part A, which covers hospital stays; Medicare B, which covers doctor visits; and Medicare D, the drug benefit that went into effect just 29 months ago. The infinite-horizon present discounted value of the unfunded liability for Medicare A is $34.4 trillion. The unfunded liability of Medicare B is an additional $34 trillion. The shortfall for Medicare D adds another $17.2 trillion. The total? If you wanted to cover the unfunded liability of all three programs today, you would be stuck with an $85.6 trillion bill. That is more than six times as large as the bill for Social Security. It is more than six times the annual output of the entire U.S. economy.

Look… If you read nothing else this summer, read the transcript (here’s the link again) of Mr. Fisher’s speech.

Alan Speakman

8 Responses to Financial Speech for the Ages… Uh Oh!

  1. Gerry Ashley says:

    That cost of Medicare probably doesn’t take into consideration the real cost of Obamacare. Add that to the pot and we might was well just start manufacturing that little item I decided to call the “Goodnight Pill.”

    For if the Baby Boomers can’t get medical care as we age, we’d be better off just having a big party with our friends, then say, “Good night and Goodbye.”

    That’s it, folks. Our government has pi$$ed away ALL of the “gold” from our golden years.

    Thank you, Barney Frank, probably one of the biggest offenders of all. Thank you Democratic Party, whose answer to EVERYTHING is “let’s make a new government position to deal with this and spend tons of money to screw it up!”

    This is not the America I served during Vietnam. This is not the America my parents served in WWII. And this is not the America our young men and women are representing in the military today.

    In my wildest dreams, I’d never expect to say this but maybe it’s time for OUR military to put on it’s big-boy pants, and step in to protect its citizens from a government gone mad like in Honduras… and maybe THAT’S why Obama was so quick to refuse to accept the military solution down there.

  2. Dawn says:

    I believe the person you are thinking of is Senator Jim DeMint. He stated that if the health care bill is passed, then the government will control more than 50% of the US economy, which is a point of no return.

  3. […] and CEO, Richard Fisher about the fiscal disaster we currently find ourselves living in. Found  (Via Grand Rants) Happy’s  summary.  We are all screwed.  Every last one of us.  Unless a massive shift of […]

  4. […] and CEO, Richard Fisher about the fiscal disaster we currently find ourselves living in. Found  (Via Grand Rants) Happy’s  summary.  We are all screwed.  Every last one of us.  Unless a massive shift of […]

  5. […] mess will quietly rot on the vine as our economy scoops and finally breaks under inflation and unsustainable […]

  6. […] economy over the next ten […]

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