The Federal Government admits to over $12 Trillion dollars in debt. In reality, its obligations are multiples of that number. The unfunded promises from Social Security and Medicare total around $100 trillion. To properly fund the forecasted future deficits in Social Security and Medicare, $100 trillion would have to be put in the fund today. Without this infusion, this liability grows exponentially. Next year, for example, it will be $4 - 5 trillion higher!

The Government has promised benefits that they cannot possibly honor. The total net worth of the entire country (the country's total assets less liabilities) is slightly above $50 trillion.

If the Government confiscated everything in this country, the two programs would still be $50 trillion short, and the Government would still be insolvent and incapable of honoring its obligations. Furthermore, all companies and individuals would have been stripped of every asset they owned.

Perhaps Albert J. Nock was correct when he wrote:

"Taking the State wherever found, striking into its history at any point, one sees no way to differentiate the activities of its founders, administrators and beneficiaries from those of a professional-criminal class."

Regardless, our government, when it comes to Ponzi schemes, makes Bernie Madoff look like Mother Theresa.

Monty Pelerin www.economicnoise.com