I would like to refer to the site USdebt.Kleptocracy.us (A visualization of United States debt)
I'm just a little bit curious as to what these figures mean. I understand the 1 trillion dollar deficit - that's the difference this year between the amount the government made (in tax revenue etc.) and how much it spent right?
I also understand the 15 trillion dollars. That's the total amount of money that the US government owes. In other words, there is 15 trillion dollars worth of government bonds out there (right?)
What I don't understand is the 114 trillion dollars? The explanation is this:
The 114.5 Trillion dollar super-skyscraper is the amount of money the U.S. Government knows it does not have to fully fund the Medicare, Medicare Prescription Drug Program, Social Security, Military and civil servant pensions. It is the money USA knows it will not have to pay all its bills.
If you live in USA this is also your personal credit card bill; you are responsible along with everyone else to pay this back. The citizens of USA created the U.S. Government to serve them, this is what the U.S. Government has done while serving The People.
The unfunded liability is calculated on current tax and funding inputs, and future demographic shifts in US Population.
What does it mean by "money it knows it does not have"? Can someone explain in layman terms what an "unfunded liability" is?