The real deficit was 4 trillion in 2007

The government is spending more than it has. It is going trillions of dollars in the hole each year because of its unfunded liabilities. How will the government pay the 60 trillion it now owes on these liabilities over the next few decades? It really cannot do that in today’s dollars. It will have to pay this off in tomorrow’s dollars that will be worth a nickle on the dollar. Just as today’s dollar is worth what a nickle bought 80 years ago. The method to bring balance is done through inflation.

This is all saying that the inflation rate between now and 2050 will have to be two or three times the rate it was over the last eighty years. Simply put, due to inflation of 7 or 8 percent each year for the foreseeable future a gallon of gas will cost $60 in 2050 and a thirty year old person will need to save about $10 million between now and then to retire comfortably.

clipped from http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59577 Calculations from the 2007 report also show that the GAAP negative net worth of the federal government has increased to $54.3 trillion, while the total federal obligations under GAAP accounting now total $59.8 trillion. “Social Security and Medicare must be shown as liabilities on the federal balance sheet in the year they accrue,” Williams argued. “To do otherwise is irresponsible, nothing more than an attempt to hide the painful truth from the American public.