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Executive Summary – Boston University Economist Laurence Kotlikoff in the September issue of Finance and Development , a journal of the International Monetary fund said the USA is broke. The true debt is actually $200 Trillion. This is no surprise since 9 out of 10 people believe the government are perpetual liars. This brings the US debt in to 840% of the GDP. To close this gap would require an immediate doubling of all US taxes – Corporate, personal and all other federal taxes. This of course would just destroy the country almost immediately.
Kotlikoff Suggestion – The economist points out several suggestions. He says increasing federal taxes is not a fix. He suggest a consumption tax (think VAT) of 18%. When we hear talk of this the fed wants 23%. He advocates reducing government. He says if there is no serious reform the result will be continued and increasing money printing and hyper inflation.
Kotlikoff on Government Accounting – He says the government accounting methods are faulty and leave plenty of room for deception. He uses the term “Enron Accounting”.
Commentary – We all know the government are opposed to telling the truth and also opposed to giving the hard working guy a break. All these critics never say the federal reserve is a joke, a scam and just nullify the interest payments to the private banker. This would fix the problem. This is the solution they are afraid to tell you about lest the cat get out of the bag. We do not ever expect to see any real solution come form the IMF or the mainstream media.
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