Think America Owes $37 Trillion? It’s Far Worse Than That

 Brian McGlinchey highlights the severity of America’s financial obligations, revealing that the official national debt of $37 trillion grossly underestimates the true total, which exceeds $151 trillion. This reflects on the government's accounting practices and the implications for future fiscal stability.

• Actual Debt: The U. S. government has a national debt of $37 trillion, but true obligations, including unfunded liabilities, total $151 trillion.

• Accounting Methods: The U. S. uses cash accounting rather than accrual accounting, ignoring expenses until they are paid, leading to misleading representations of financial health.

• Unfunded Liabilities: Major unfunded obligations include $15 trillion for future federal employee and veterans' benefits, and approximately $105.8 trillion for Social Security and Medicare.

• Net Position: After considering $7.9 trillion in governmental assets, the net debt stands at about $143 trillion, equal to 85% of America’s total net wealth.

• Rising Costs: The national debt is growing at about $156 million per hour, while mandatory spending, like Social Security and Medicare, pushes federal outlays to 75% of total spending.

• Insolvency Warning: Trust funds for Social Security and Medicare are nearing insolvency, with anticipated cuts to payouts starting in 2033.

• Interest Payments: Interest on the national debt is rising, becoming a larger share of federal spending, projected to eventually exceed spending on Social Security.

• Constitutional Issues: Much federal spending is unconstitutional, driven by expansive interpretations of the government’s powers since the 1930s.

Currently positioned in a $143 trillion financial deficit, the U. S. faces critical challenges regarding fiscal responsibility. Without immediate and effective solutions, including a reevaluation of Social Security and Medicare, the country risks hyperinflation and potential economic collapse. Historical patterns suggest that future measures may result in further debt creation rather than responsible governance, emphasizing the need for a constitutional approach to spending. 

https://starkrealities.substack.com/p/america-37-trillion-national-debt-far-worse-unfunded-liabilities