The $89.5 trillion in liabilities include:
- $20.69 trillion
- $12.65 trillion public Treasury debt (interest rate sensitive bonds sold to finance government spending)
- Fyi – $5.35 trillion of “intra-governmental” Treasury debt are not included as they are considered an asset of the particular programs (SS, etc.) and simultaneously a liability of the Treasury
- $12.65 trillion public Treasury debt (interest rate sensitive bonds sold to finance government spending)
- $6.54 trillion civilian and Military Pensions and Benefits payable
- $1.5 trillion in “other” liabilities http://www.fms.treas.gov/finrep13/note_finstmts/fr_notes_fin_stmts_note13.html.
- $69 trillion (present value terms what should be saved now to make up the present and future anticipated tax shortfalls vs. present and future payouts).
- $3.7 trillion SMI (Supplemental Medical Insurance)
- $39.5 trillion Medicare or HI (Hospital Insurance) Part B / D
- $25.8 trillion Social Security or OASDI (Old Age Survivors Disability Insurance)
- Fyi – $5+ trillion of additional unfunded state liabilities not included.
These needs can be satisfied only through increased borrowing, higher taxes, reduced program spending, or some combination. But since 1969 Treasury debt has been sold with the intention of paying only the interest (but never repaying the principal) and also in ’69 LBJ instituted the “Unified Budget” putting all social spending into the general budget reaping the gains in the present year absent calculating for the future liabilities. If you don’t know the story of how unfunded liabilities came to be and want to understand how this took place, please stop and read as USA Ponzi explains nicely… http://usaponzi.com/cooking-the-books.html
$81.8 trillion in US Household “net worth”
http://bit.ly/1pV8q5G