[lbo-talk] US Could Be Going Bankrupt

Doug Henwood dhenwood at panix.com
Sun Jul 16 07:16:52 PDT 2006


On Jul 16, 2006, at 5:52 AM, Auguste Blanqui wrote:


> A ballooning budget deficit and a pensions and welfare timebomb
> could send the economic superpower into insolvency, according to
> research by Professor Laurence Kotlikoff for the Federal Reserve
> Bank of St Louis, a leading constituent of the US Federal Reserve.

The St Louis Fed has been a hotbed of monetarism since the early 1970s, and Kotlikoff has been saying crap like this forever. He's a leading proponent of generational accounting, which boils down to saying that if we tried to pay off all our future Social Security obligations today, we couldn't. Pay this no mind.

Doug



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