California economist says real US debt $70 trillion. Please explain the case it’s a World Bank debt or what?
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- Hari PrakashAug 17, 2013
In fact, a new working paper by University of California-San Diego economics professor James Hamilton estimates that the US was on the hook for more than $70 trillion in off-balance sheet liabilities at the end of 2012. Here’s Hamilton’s tally. Housing related commitments-$6.112 trillion—Debt of government sponsored entities PLUS $1.408 trillion—The notional value of the mortgages that the government-sponsored entities packaged up and sold off to investors after “guaranteeing” them. Student and other loan guarantees-$325 billion FDIC-$7.406 trillion—the value of the deposits insured by the Federal Deposit Insurance Corp The Federal Reserve-$1.128 trillion— Social Security- $26.5 trillion+ Medicare-• $27.6 trillion+ Other government trust funds-$1.86 trillion, such as the Civil Service Retirement and Disability Fund and the Military Retirement Fund.+ Total-$70.08 trillion Hamilton writes: “Acknowledging their size is a necessary first step for making wise policy decisions.”
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