The United States is on a path to financial ruin, and everyone can see what is happening, but nobody can seem to come up with a way to stop it. According to the U.S. Treasury, the federal government is currently 22 trillion dollars in debt, and that represents the single largest debt in the history of the planet.
Over the past decade, we have been adding to that debt at a rate of about 1.1 trillion dollars a year, and we will add more than a trillion dollars to that total once again this year.
But when you add in our unfunded liabilities, our long-term financial outlook as a nation looks downright apocalyptic. According to Boston University economics professor Laurence Kotlikoff, the U.S. is currently facing 200 trillion dollars in unfunded liabilities, and when you add that number to our 22 trillion dollar debt, you get a grand total of 222 trillion dollars.
You can spend more money than you are bringing in for quite a while, but eventually a day of reckoning arrives. Anyone that has ever gone into too much credit card debt knows exactly what I am talking about. We have been on the biggest debt binge in the history of the world, and it has allowed us to enjoy a standard of living that is far beyond what we actually deserve, but the price that we will pay for such utter foolishness will be extremely painful indeed.