Analyst Says U.S. In Worse Financial Shape than Greece

by Sal on June 13, 2011

in Economy,Politics

$100 Trillion.  That’s the amount that Pimco analyst Bill Gross said today that the U.S. is on the hook for.  This includes the debt, interest on the debt, as well as all current Medicare and Social Security obligations.  It is hardly surprising.  Since the advent of the New Deal and the change towards government as the Nanny State, ready to take care of its citizens from cradle to grave, the American government has spent, spent, spent, without regards for the consequences and without thinking about the bigger picture.  Now, it’s starting to catch up to us.

Even in the 1980s, when Reagan tried to reign in government spending and warned of the impending fiscal crisis, Congress punted.  The 1990s showed a budget surplus for the first time, but it was transient and didn’t take into account the massive strain the baby boomers would place on our retirement system.  The Bush years in the early 2000s showed a Republican Party that had lost its way, and Obama’s reign has taken government spending to whole new levels, not only increasing the deficit but introducing a major new entitlement known as ObamaCare.

The U.S. financial situation is in dire straits.  As Bill Gross points out, something must be done and done fast, or the fate that the U.S. economy will face will make Greece’s situation look like a minor blip on the economic radar.

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