Bernanke is Playing With Fire, Says Laurence Kotlikoff: The Real U.S. Debt = $222 TRILLION!

Boston University Economics Professor Laurence Kotlikoff is worried about America’s dire financial situation. Dr. Kotlikoff says, “The situation is getting worse and worse and worse. We are running a massive six decade Ponzi scheme, and it’s coming to a real threatening point.” Dr.Kotlikoff calculates the real government deficit is enormous and it’s growing exponentially.

It’s $222 trillion. Last year it was $211 trillion. We grew the deficit by $11 trillion in one year,” charges Dr. Kotlikoff. He also says, “We are actually in worse shape than any developed country. . . We are using accounting that would make Bernie Madoff blush.” Kotlikoff thinks the Federal Reserve could easily lose complete control of inflation and warns, “Ben Bernanke is playing with fire here because we could have a tripling of the price level.” Join Greg Hunter as he goes One-on-One with Economist Laurence Kotlikoff.

 

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Comments

  1. Can’t help but think TSHF won’t wait until 2014. Max Keiser may just be right. This spring. What will happen if German ships or planes arrive in London, NY and Paris saying load it up with our property and they are told NO?

  2. Debt! Debt! Debt! Means Collapse! Collapse! Collapse!  I’ve been thinking about moving back to Scotland but the problem with that scenario is how do I carry my stack and off course no protection against the zombies. Lol So I guess I’ll stay here. Lol

    • @Marchas45: I asked that question to Bob Chapman (RIP). He told me, you sell your stack and emmediatly buy it back upon arrival. Scary I know.  You lose a lot in the transfer (Better than losing it all). Buy it back on a dip.

    • I have been to Scotland and absolutely loved the place.  Even so, however, I would not emigrate there because of the laws against self-protection.  Yes, I suppose that one can have a grouse gun IF one joins a hunting club and IF one agrees to keep it locked up at the club but neither of these is acceptable to me.  I AM an American, dammit, and I always will be.  If it becomes necessary to prove that via going to war against those who hate liberty, then so be.  Other than for family, I cannot think of a better reason to spend one’s life.
       
      As to this article, yes, Kotlikoff is a VERY smart guy and one of about 4 or 5 economists who actually knows whereof he speaks.  When people of his stature choose to speak, others should choose to listen.  But, for the most part, they are not.  I very strongly agree with his assessment that there are no adults in control of this country, hence no adult conversations occurring.  All that we are getting from the clowns in DC is a lot of very childish bickering and whining… neither of which will matter a diddly-damn.  On the other hand, the national debt is only a problem insofar as anyone is planning to ever pay it off and I see no signs that anyone is even thinking along these lines.  It looks a great deal more like “borrow all we can, live it up, and then repudiate the debt” to me. 

  3. Sorry Ben But Your Fire Is Out Of Control.
     
     

  4. Reminds me of the old commercial.  ‘Promise her anything but give her Arpege’.  Promise us anything but give us more FIAT.  2013 will see a deficit of $1.7 trillion or more.  That’s bad enough but $4-5 trillion of debt is due for refinancing and rolling over.  That won’t go away.  Anyone want some of our Aaa minus debt.  Think QE 5 to take care of this.  Rolling over this debt is questionable at best but don’t think that the Fed and Treasury won’t find a way. Jack Lew and whatever other munchkin to takes over Ben’s slot will find something to kick the camel down the road.

    • OK, AG, we KNOW what is happening and what is likely to continue happening.  Now… what to do about it?  Clearly, convert toilet paper fiat into REAL money!  Stacka-stacka-stacka…  lol
       
      Forget the cost in fiat and just concern ourselves with the ounces.  They are what matters.  Anyone care what an oz. of silver costs in Zimbabwe notes?  Nope, not really.  If there ever comes a time when we can say that about US dollars, only the size of our stack will matter and not what it cost in fiat paper.
       

    • And the sheep in this country will keep trying to disarm us when guns are going to be needed to protect families and towns against what is coming. Cut EBT? Riots will commence.

  5. Initially when asked how the average guy can protect himself Dr Kotlikoff makes the statement that he feels Gold is presently expensive and property is probably a better option, Hmmm? A little later when asked about Silver, he says he doesn’t know enough about PMs to really comment, so I think it’s safe to say that explains and at the same time cancels out his “Expensive” view.
     
    But it begs the question….how can someone who is so switched on regarding the debt calamity we are now facing be simultaneously so ignorant of the protection Gold and Silver offers?

    • Zilver.  Gold is expensive as hell.  Thats why we buy silver?  Academics have to be politically correct at all times to protect their jobs.  Being pro gold is not politically correct.  He needs to keep a good image and never sound too conspiratorial in his views.  He probably is a stacker though.

    • Pollokeeper – Suppose I must be a James Turk convert. I no longer view Gold as expensive, more like my fiat no longer holds a value that is high enough for me to purchase as many ounces as I’d like ;-)
       
      In the conventional sense and when measured against fiat then yes it’s expensive. But one ounce today will still buy a quality suit and a pair of handmade shoes and belt, just as it would have done in Roman times.

      Can’t buy a lot of real estate for less than an oz of Gold!!! If he thinks Property is cheap and Gold is expensive then it still illustrate to me that he doesn’t understand value when measured against paper.
       
      I still feel any top economist who is screaming DANGER should also understand PMs? He said he’s been worrying about the direction of US debt since the 80s, yet still appears to have no idea on the benefits of AG and AU. Politically correct and a secret stacker? Could very well be but he hides it well. Oh well takes all sorts.

    • “ If he thinks Property is cheap and Gold is expensive then it still illustrate to me that he doesn’t understand value when measured against paper.”
       
      Perhaps it reveals that his money in invested in real estate?
       
      Speaking of the value of gold, I had to laugh at myself a few months ago.  At that time, I had just started receiving my monthly SS benefit.  It amounted to $1691, which at the time was just about equal to 1 oz. of gold.  The funny part was from an article I had read that said that the 1st person to receive an SS benefit received $35 a month.  I thought that this was a very small amount of money but then it hit me.  Hey, wait a sec! At that time, gold was valued at $35 an oz.!  So, the dollar numbers have changed but the real value of the benefit has not.  It is still an oz. of gold per month… for me, anyway, more or less for others.
       

  6. I guess I should be happy that I’m Canadian?  But I’ve read an article by Kotlikoff on Bloomberg last year, & after looking at the numbers, u realize just how bad the situation has gotten.  Very depressing.

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