The real federal debt - bigger than you think

The federal debt is generally stated to be about $15.5 or $15.6 trillion. The GAO (and others) projects that it will increase significantly in coming years.

Is that the whole story? Of course not. Neither political party has the courage to even tell us what spending they want to cut, especially now in an election year. And, neither party has the courage to tell us that the federal debt is much higher if unfunded (off the books) debt is also considered.

What unfunded debt? 

Things like medical bills that American war veterans will accrue over the next 40-50 years. That adds about another $1 or maybe $2 trillion (another estimate). It also includes underfunded medicare, social security and federal employee pension obligations. Estimates of the total vary - $63.8 trillion according to a 2009 study; $61.6 trillion according to a 2011 study; projected at $144 trillion by 2015 according to someone else; $211 trillion according to a Boston University economics professor (jeez - hope that one's wrong); and so on. Whatever it is, its big. Really big. But, it does make $15.6 trillion look more comfortable by comparison.

 Plasma loops in solar flare

Solar Dynamics Observatory - January 2012

No worries

Some economists say those unfunded obligations are nothing to worry about. They argue its like a home mortgage. You just pay it off over time and our economy will grow enough to absorb the cost. We don't even owe it now, so relax and ignore it. Okey, dokey. Let's just ignore it.

 Magnetic tendrils at solar flare - UV light photo

Soalr Dynamics Observatory (in orbit)

Over the cliff, or to granny's house we go

That sounds like a plan for sure. A bad plan. Those costs will not be absorbed without some pain, e.g., a decline in our standard of living. At least common sense suggests that as a possible outcome. What can be done about this is unclear. Maybe America will inflate its way out of these obligations. Maybe the politicians (and us by proxy) will be forced to renege on them. Maybe America will just go bankrupt. Regardless, as long as Americans stick with the two inept parties now in power, they will go over the cliff they are being led to. Maybe it makes no difference. Maybe a new political party grounded in pragmatism can't do anything about something this big. Maybe the unconcerned economists are right, just ignore it. At least then we can sit back, relax and enjoy the ride, wherever it goes.