Monday, September 19, 2011

Worse Than Greece

America's debt woe is worse than Greece's -

I agree with his debt analysis:

The government's total indebtedness -- its fiscal gap -- now stands at $211 trillion, by my arithmetic. The fiscal gap is the difference, measured in present value, between all projected future spending obligations -- including our huge defense expenditures and massive entitlement programs, as well as making interest and principal payments on the official debt -- and all projected future taxes.

The data underlying this figure come straight from the horse's mouth -- the Congressional Budget Office. The CBO's June 22Alternative Fiscal Scenario presents nothing less than a Greek tragedy. It's actually worse than the Greek tragedy now playing in Athens. Our fiscal gap is 14 times our GDP. Greece's fiscal gap is 12 times its GDP, according to Professor Bernd Raffelhüschen of the University of Freiburg.

We are the brokest nation on earth and the brokest nation in history.

I might even buy into some version of his "purple tax" ... I can't see how much he is cutting entitlements and then going with something like a flat tax. Couple of interesting links that I hope to take a look at later.

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