You owe more than you think you do

And your kids are in even worse shape!

My buddy Bette sent me a story from the San Francisco Chronicle about the national debt:

A rare consensus has developed across the political spectrum that the government's own fiscal affairs are precarious, with an astonishing $53 trillion in long-term liabilities, according to the Government Accountability Office.

To put that number in human terms, the debt has reached $455,000 per U.S. household. As that debt grows, the United States increasingly relies on foreigners, including China and Middle East oil producers, for financing.

And more:

Breaking down the numbers

Current liability:

• Social Security: $6.7 trillion


• Medicare: $34.1 trillion


• Total long-term government liability: $53 trillion

Source: Government Accountability Office, Long-term Fiscal Outlook, Jan. 2008

Where it goes

U.S. debt held by foreigners as of mid-2007:

• Foreign holdings of U.S. equities: $5 trillion


• Foreign holdings of U.S. corporate bonds: $3 trillion


• Foreign holdings of U.S. Treasury securities: $2 trillion


• Foreign share of U.S. Treasury securities: 45 percent

Source: UC Berkeley economists Ashok Bardhan and Dwight Jaffee, YaleGlobal online, April 2008

A few days ago I wrote a post about our reliance on foreign money to finance our debt spending...