Is the U.S. bankrupt?

Don't expect Big Ben to address this issue. I just love it when the government pays good taxpayer money for a study, and then when they don't like it, they shove it under the rug.

Here are some highlights from the article in the British Telegraph.

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Among other things, Professor Kotlikoff of Boston University says "The US government is, indeed, bankrupt, insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds."

The U.S. budget deficit is not massive by European standards.

however, "The total fiscal gap could be an almost incomprehensible $65.9 trillion, according to a study by Professors Gokhale and Smetters."

Prof Kotlikoff said: "This figure is more than five times US GDP and almost twice the size of national wealth. One way to wrap one's head around $65.9trillion is to ask what fiscal adjustments are needed to eliminate this red hole. The answers are terrifying. One solution is an immediate and permanent doubling of personal and corporate income taxes. Another is an immediate and permanent two-thirds cut in Social Security and Medicare benefits. A third alternative, were it feasible, would be to immediately and permanently cut all federal discretionary spending by 143pc."

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May I suggest freezing Social Security, eliminating Medicare, and cutting spending by at least 143%.

Unfortunately, George Bush won't go on Fox News with this report to call for an overhaul of Social Security because then he would have to end his prescription drug handouts.