THE REAL THREAT TO OUR WAY OF LIFE

"The federal government keeps two sets of books…the set the government doesn't talk about reports a more ominous financial picture."
--Dennis Cauchon, USA TODAY

We've all heard about the federal debt. But most of us haven't heard the truth.
Politicians will tell you that the federal debt is around $11 trillion.

That sounds bad enough—but it gets even worse. Together with unfunded liabilities (all of the benefits that the government has promised to seniors, Baby Boomers, and other citizens) our nation is in the hole for nearly $62 trillion dollars.

That's more than $200,000 for every man, woman, and child in America, and it's growing
The American people are told that the federal debt is around $9 trillion. That sounds bad enough—but it gets even worse. Together with unfunded liabilities (the benefits that the government has promised to seniors, Baby Boomers, and other citizens) our nation is in the hole for more than 54 trillion dollars. That's more than $175,000 for every man, woman, and child in America, and it's growing daily. Bold leadership, citizen engagement, and tough decisions will be required to face our nation's financial challenges. Without accurate financial information, none of these is possible.


State and local taxpayers are in trouble. Over the years, state and local governments have promised, but not paid for, roughly $1.5 trillion dollars in retiree health care and other non-pension post-employment benefits--and the bill is coming due as millions of baby boomers begin to retire. Until recently, few officials even knew the size of their obligations but a new accounting rule will, for the first time, hold state and local governments to a similar standard that applies to private sector employers, forcing them to calculate their unfunded liabilities and publicly disclose them on their financial statements.

David Walker, Comptroller General of the United States, warns, "there are no quick fixes" and that stark fiscal challenges need to be "addressed with a greater sense of urgency by policymakers since time is currently working against us."State and local officials should not expect a bailout from Washington, which is facing its own challenges with the rising costs of Medicare, Medicaid, and Social Security. State and local officials must solve this problem themselves. Fortunately, there are several creative, market-based solutions that could fit the bill.

Taxpayers are increasingly becoming aware of a new challenge: The rising costs of retiree health care and other non-pension, post-employment benefits for state and local employees, which amount to approximately $1.5 trillion in unfunded liabilities. State and local officials must somehow pay for these promised benefits, while reforming the way these benefits are financed and delivered. A failure to act responsibly guarantees a negative impact on the state and local government bond ratings.

There are no quick fixes and no escape from the consequences of inaction. This is another reason taxpayers should keep a close watch on their local and state elected officials. source: HERTITAGE FOUNDATION

THE NEXT BAILOUT THAT I EXPECT WILL BE THE REQUEST FROM States TO Obama AND CONGRESS TO BAIL THEM OUT, BUT THE PROBLEM IS THAT THE FEDERAL GOVERNMENT IS SO DEEPLY IN DEBT, THAT ANY BAIL OUT FOR THE STATES WILL ONLY SLIP THE USA DEEPER INTO THE HOLE OF BANKRUPTCY!