“U.S.is bankrupt and we don’t even know it”
“Let’s get real. The U.S. is bankrupt.” So claimed Laurence Kotlikoff, professor of economics at Boston University and one of the nation’s leading authorities on Social Security, while speaking on Bloomberg Television on August 11, 2010.[i]
Referring to the International Monetary Fund’s annual review of U.S. economic policy, Professor Kotlikoff said:
But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP”.