$202 Trillion in Debt

When politicians use the “labeling” game to classify future obligations of the nation, bad things will happen… maybe not today or tomorrow, but sooner than later.  According to Laurence J. Kotlikoff, professor of economics at Boston University, if you look behind the curtain of the U.S. Balance Sheet and analyze the numbers, we’re toast.  Asset and liability classification and valuation is important to the creditor.  In order to loan money against an asset, the issue is all about repayment.  If there are too many liabilities demanding future cashflow than any prudent creditor would not extend new credit to a borrower.  It makes no sense.

The following interview sums it up:


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