These are promises made to citizens for pensions, Medicare, Medicade, Social Security payments. The estimated total of these unfunded promises is $70 trillion which unless dealt with will be a financial disaster for our children and grandchildren. My source for this amount is David Walker the former comptroller of the US Government currently with the Comeback America Initiative, dedicated to fiscal responsibility. If the reader would like more information their website is www.keepingamericagreat.
Unless we act responsibly regarding these unfunded promises the bond and currency markets will crush bonds and devalue the dollar to such a low value in world markets that inflation will run wild.
Last year Standard and Poor’s Credit Agency downgraded the United States to AA from AAA and Moody’s Credit is currently threatening to do the same.
We cannot continue this fiscal irresponsibility or we will eventually lose our status of being the reserve currency of the world.
