Economy Unfunded liabilities

[Doodies]

I was watching this video on youtube and this guy claims that the U.S debt is around 150 to 200 trillion dollars after including the unfunded liabilities.




If this number is accurate how is there any mathematical way to pay that down. Think about it, we are in a booming economy right now and still running deficits... In the video he states that if the U.S federal government made a 10% cut across the board it would it would balance the budget in about 5 years but that seems optimistic, as at that level of cuts it would certainly cause the economy to slow down. Those cuts would also just balance the budget not actually pay anything down, there would need to be further cuts after that as well. The biggest problems seem to be medicare and social security.

The only logical way out of this scenario seems to be to either cut off medicare and SS from people under a certain age but still have them pay into it to support the current and soon to be retirees.

Another possible solution would be to hyper inflate the U.S dollar making it's value worth 10-100x less than it's current value so like a big mac would cost $60-$600 instead of $6. Obviously that has it's own problems with people losing there savings and the dollar would certainly lose it's world reserve currency status.

This seems to be a big problem with pension plans as well, almost all of them have funding shortfalls and it seems like there was a miscalculation early on when these plans/systems were implemented.

I'm curious about a couple of things.
If this will all come to ahead one day and cause a huge problem and when?
If anyone has a solution to this problem?
Is this guy in the video just a complete nutter and his numbers are way off?

 

[Cuzcatlan]

The government pension crisis looms close.
In the city of LA the city workers pension unfunded liability is already about 30%

 

[Doodies]

The government pension crisis looms close.
In the city of LA the city workers pension unfunded liability is already about 30%

There are also couple of other really big ones like Illinois and Kentucky that are also on the brink, the funding formulas just don't work.

Do you think the government will bail them out and If not what do those people that are retired or close to retirement do?

 

[Quipling]

I was watching this video on youtube and this guy claims that the U.S debt is around 150 to 200 trillion dollars after including the unfunded liabilities.




If this number is accurate how is there any mathematical way to pay that down. Think about it, we are in a booming economy right now and still running deficits... In the video he states that if the U.S federal government made a 10% cut across the board it would it would balance the budget in about 5 years but that seems optimistic, as at that level of cuts it would certainly cause the economy to slow down. Those cuts would also just balance the budget not actually pay anything down, there would need to be further cuts after that as well. The biggest problems seem to be medicare and social security.

The only logical way out of this scenario seems to be to either cut off medicare and SS from people under a certain age but still have them pay into it to support the current and soon to be retirees.

Another possible solution would be to hyper inflate the U.S dollar making it's value worth 10-100x less than it's current value so like a big mac would cost $60-$600 instead of $6. Obviously that has it's own problems with people losing there savings and the dollar would certainly lose it's world reserve currency status.

This seems to be a big problem with pension plans as well, almost all of them have funding shortfalls and it seems like there was a miscalculation early on when these plans/systems were implemented.

I'm curious about a couple of things.
If this will all come to ahead one day and cause a huge problem and when?
If anyone has a solution to this problem?
Is this guy in the video just a complete nutter and his numbers are way off?

lmao

the us debt is not 200 trillion. and if it was, it could not be balanced in five years with a "10% cut across the board". yes, he's a complete nutter.

 

[7437]

Lets assume im not listening to your video. What exactly are we talking about?

Cliffs

 

[Fawlty]

"A good example of an unfunded liability is the money you don't have in your wallet right now that I'm going to steal."

- Libertarian By Trade

 

[7437]

lmao

the us debt is not 200 trillion. and if it was, it could not be balanced in five years with a "10% cut across the board". yes, he's a complete nutter.

You mean the debt isnt 10 times the GDP? shocking.

 

[Cuzcatlan]

There are also couple of other really big ones like Illinois and Kentucky that are also on the brink, the funding formulas just don't work.

Do you think the government will bail them out and If not what do those people that are retired or close to retirement do?

The problem with states and municipalities is they can't print themselves money like the federal government. I believe some will go just collapse.
Sucks for people that are depended on that money.

 

[Doodies]

lmao

the us debt is not 200 trillion. and if it was, it could not be balanced in five years with a "10% cut across the board". yes, he's a complete nutter.

I think he is talking about balancing just the federal debt(20 trillion) and that is just to bring the current deficits under control.

According to this website https://www.usdebtclock.org/# it list the unfunded liabilities at 126 trillion so he isn't that far off and the source used on that site is the US treasury.

 

[Doodies]

Lets assume im not listening to your video. What exactly are we talking about?

Cliffs

The U.S debt including unfunded liabilities(medicare and social security) is between 150 and 200 trillion and there doesn't seem to be a way to pay it off.

 

[7437]

The U.S debt including unfunded liabilities(medicare and social security) is between 150 and 200 trillion and there doesn't seem to be a way to pay it off.

??? You mean the healthcare and retirement for every person before they die? I'd assume economic growth and bonds. Next question?

 

[Doodies]

??? You mean the healthcare and retirement for every person before they die? I'd assume economic growth and bonds. Next question?

That is your solution, just economic growth, and how are you going to achieve that growth? The U.S treasury says under the current trajectory the load on these systems with outpace any growth until about the year 2039 and after that point it will slowly still be draining but just that will start to reverse course. I think there needs be some sort of serious austerity measures put in place.

 

[7437]

That is your solution, just economic growth, and how are you going to achieve that growth? The U.S treasury says under the current trajectory the load on these systems with outpace any growth until about the year 2039 and after that point it will slowly still be draining but just that will start to reverse course. I think there needs be some sort of serious austerity measures put in place.

Austerity will make your growth projections alot worse. Each economic dip has been fixed by spending , not by austerity. Attempting austerity is what caused the depression to get worse under hoover.

Growth and debt management. The government doesnt have to pay its bills, ever. it just has to grow faster than inflation and refinance until the debt is not a significant amount because of inflation.

 

[Paradigm]

The government pension crisis looms close.
In the city of LA the city workers pension unfunded liability is already about 30%

CA's unfunded pension liability is even scarier...the two largest pension plans in the US are here and they're short by $250 billion.

"California’s new governor, Gavin Newsom, proposes giving an extra $4.1 billion in his budget to reduce the almost $250 billion combined unfunded liability of the two largest US pension plans, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS)."

https://www.ai-cio.com/news/new-california-governor-aims-cut-calpers-calstrs-debt/

 

[ElKarlo]

The government pension crisis looms close.
In the city of LA the city workers pension unfunded liability is already about 30%

Low interest rates has basically ruined all bind returns. This has made it almost impossible for most pension funds around the world to keep up with outflows.

 

[Last Samurai]

Unfunded liabilities are projected costs


It is not money that's owed now, it is money that will have to be borrowed in the future provided the budget forecasts remain accurate. I think that figure is for the next 50 years, but I'm not sure. For the video to be informative it should make that clear.


Edit - actually it's for the next 75 years

 

[ElKarlo]

https://www.cnbc.com/2019/11/20/ecb...omic-risks-in-financial-stability-report.html
Only going to get worse. Negative rates are here to stay in the EU zone for the most part.
It's also cussed banks in Europe and Japan to take some serious risks. Pension funds too will be more and more stock heavy and that may end in disaster if there's a significant pullback

 

[PEB]

lmao

the us debt is not 200 trillion. and if it was, it could not be balanced in five years with a "10% cut across the board". yes, he's a complete nutter.

True but don't let that stop the right wing spin machine. The right has zero credibility after what they been doing with the debt. They cannot have it both ways explodes the deficit while complaining about it.

 

[superpunch]

I was watching this video on youtube and this guy claims that the U.S debt is around 150 to 200 trillion dollars after including the unfunded liabilities.




If this number is accurate how is there any mathematical way to pay that down. Think about it, we are in a booming economy right now and still running deficits... In the video he states that if the U.S federal government made a 10% cut across the board it would it would balance the budget in about 5 years but that seems optimistic, as at that level of cuts it would certainly cause the economy to slow down. Those cuts would also just balance the budget not actually pay anything down, there would need to be further cuts after that as well. The biggest problems seem to be medicare and social security.

The only logical way out of this scenario seems to be to either cut off medicare and SS from people under a certain age but still have them pay into it to support the current and soon to be retirees.

Another possible solution would be to hyper inflate the U.S dollar making it's value worth 10-100x less than it's current value so like a big mac would cost $60-$600 instead of $6. Obviously that has it's own problems with people losing there savings and the dollar would certainly lose it's world reserve currency status.

This seems to be a big problem with pension plans as well, almost all of them have funding shortfalls and it seems like there was a miscalculation early on when these plans/systems were implemented.

I'm curious about a couple of things.
If this will all come to ahead one day and cause a huge problem and when?
If anyone has a solution to this problem?
Is this guy in the video just a complete nutter and his numbers are way off?

It's bullshit because it's over a timespan of like 50-100 years.. Of course if you add up every number for 50 years it's gonna be fucking huge.

Say you make $20K a year. That's about minimum wage. It sucks. $20K * 100 years is 2 MILLION DOLLARS!! HOLY SHIT YOURE RICH!!!

Or to put that in perspective: The US GDP is $20 trillion. The US 100 year GDP is 2 QUADRILLION DOLLARS!!! HOLY SHIT!!!!

 

[superpunch]

nm