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ECONOMY: Our liabilities are even greater than Greece’s

Letter by O. T. Clark, Puyallup on May 5, 2010 at 11:57 am with 6 Comments »
May 5, 2010 11:57 am

Re: The editorial (TNT, 5-5) concerning the economic woes of Greece.

The stock market is going batty over Greece’s credit problems. Let’s compare her problems with the United States.

Greece has a public debt of $35,800/person, her unemployment rate is around 10%, is presently running an annual deficit of about 13% and has an unfunded liability of $265,000/person.

The United States has a public debt of some $42,300/person, our unemployment rate is about 10%, our annual deficit is about 13% and has an unfunded liability of over $107 trillion, $349,000 per person, and being added to every year. Watch the blood flow when the investor wakes up to the above facts.

All of the above information is readily available from the Web or can be calculated from such information. There is an excellent interview by FOX Business Network’s Brian Sullivan with famed economist and former Chilean Labor and Social Security Minister Jose Pinera, dated Feb 22, 2010, regarding the above unfunded liability at http://wallstreetpit.com/17422-jose-pinera-social-security-in-the-u-s-to-face-deficit-in-7-years.

It will take a Congress with a spine to solve our problems. Where will we find one?

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  1. fatuous says:

    “It will take a Congress with a spine to solve our problems. Where will we find one?”

    Until the citizens of United States agree to accept the pain of more taxes and less spending, we wouldn’t find a Congress with a spine to solve our problems.

    They will be too busy bashing each other to do anything meaningful.

    We need a new party of truth and action. Unfortunately, American’s are afraid of the truth.

  2. larsman says:

    The flares you seem to see are only celebration sparklers (party favors) made to provoke the envy of the Carpathians. Don’t be silly, the California is juuust over the horizon, I’ve just purchased 2 shares of life-boat futures and besides, Titanic is ‘too big to fail’ (sink), my credit card tells me so…

  3. It gets worse when you look at the states’ statistics. California has unfunded pensions that total over $500 billion. (Not 50, 500.) Washington State has not funded state pension funds for years so we are not far behind. We are rapidly entering uncharted economic waters where no computer models have ever been. Unfortunately, representatives in state and national government are too ignorant to understand the depth of this looming disaster.

  4. nanook says:

    We will not find representatives of senators with spines until we elect a leader instead of a personality for president . . .

  5. klthompson says:

    It will probably take more than two election cycles to eliminate all the incumbents but the start will be this coming November. It will take a majority of members of Congress who support the Constitution to clean up the mess of the last fifty years but it can be done.

  6. Publico says:

    The problem, Mr. Clark, is that your comparison is not valid unless or until you include the per-capita GDP for each country. The GDP is a measure of how productive a country is and what it can afford.
    The per-capita GDP for Greece, estimated for 2010, is $27,420 international dollars. For the USA it is $47,702. We are not even close to where Greece is.
    That does not mean we should not reduce deficit spending and the President and the congress know that. It is not time yet.

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