America doesn’t have to go bankrupt and it wouldn’t if the American people were to rise up and demand serious action, but sadly, most Americans are too intimidated by the size and scope of the problem to demand major changes to the irresponsible way the government does business.

Reality checks from: http://townhall.com/columnists/johnhawkins/2014/01/11/why-america-is-headed-toward-bankruptcy-in-13-terrifying-quotes-n1777384/page/full

Our nation’s future is slipping away right in front of us and that’s why it’s important for those of us who care about our nation’s future to point out quotes like these while we still have a short window of time where we can make a difference. Those of us who love this country need the American people to stand up, speak out, and force our government to behave responsibly before it’s too late.

What would you think of a person who earned $24,000 a year but spent $35,000? Suppose on top of that, he was already $170,000 in debt. You’d tell him to get his act together — stop spending so much or he’d destroy his family, impoverish his kids and wreck their future. Of course, no individual could live so irresponsibly for long. But tack on eight more zeroes to that budget and you have the checkbook for our out-of-control, big-spending federal government. — John Stossel

The Federal Reserve is propping up the entire U.S. economy by buying 61 percent of the government debt issued by the Treasury Department, a trend that cannot last.

Within a decade, the United States will be spending more of the federal budget on its interest payments than on its military.

For every 1.65 employed persons in the private sector, 1 person receives welfare assistance. For every 1.25 employed persons in the private sector, 1 person receives welfare assistance or works for the government. …The punchline: 110 million privately employed workers; 88 million welfare recipients and government workers and rising rapidly.

The total present value of payments expected under Social Security and Medicare beyond what is expected to be collected under current tax laws is about $100 trillion. One way to put that amount of money in context is to note that it is about twice the amount of all the net private assets that exist in America today. To answer cw’s question directly, the best back-of-envelope estimate is that meeting this unfunded portion of our Social Security and Medicare commitments would require roughly an immediate 80 percent increase in federal income taxes, sustained forever. 

The total fiscal overhang of our federal, state, and local governments — their combined debt and unfunded liabilities — is around $140 trillion, and growing. That is about twice the annual economic output of human civilization, and nearly the value of all the financial assets in the world. It is something close to a mathematical certainty that those debts and obligations will not be made good on at their present value.

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