Laurence Kotlikoff, Professor of Economics at Boston University, appeared before Congress last month and called them out on phony accounting. He told Greg Hunter of USAWatchdog that despite his best attempts, he could not make senators see how the fiscal situation of the country is not as rosy as official numbers would have us believe. In his interview with Hunter, Kotlikoff talked a lot about social security, but he ultimately underscores what Peter Schiff has been saying for a long time: another financial collapse is coming.
Video Length: 00:33:44
Some of Kotlikoff's key points include:
The current deficit is actually $5 trillion, not the $500 million Congress claims.
The entire government is in terrible fiscal shape, with a true debt load of over $200 trillion.
The US is risking the same path as Argentina with its out-of-control money creation, which dropped it from the 5th largest GDP in the world to the status of a developing country.
Real wages and the savings rate are extremely low. In the 1950s, Americans saved about 15% of their income, compared to just 4% today.
Long-term Treasury bonds are extremely risky, because the Federal Reserve won't be able to keep interest rates suppressed forever. Eventually, true inflation will ruin banks that relied too heavily on bonds.
