Liberty Planet Weblog

ObamaCare Creates $17 TRILLION in Unfunded Liabilities

Posted on: April 5, 2012

President Obama supported his health care bill with claims that ObamaCare would only cost about $800 billion over the first 10 years and wouldn’t add anything to the national debt.

Here, we see a video of U.S. Senator Jefferson Beauregard Sessions III of the Senate Budget Committee explaining that, in fact, ObamaCare will add $17 trillion to the national debt.

Video

The gov-co currently claims that the national debt is about $15 trillion. Assuming that Senator Sesssions’ claim that ObamaCare will add $17 trillion to the national debt is true, it appears that ObamaCare will more than double the national debt. We might reasonably wonder How th’ hell could the Obama administration be so stupid as to think they could enact a program that would more than double the national debt? Any fool should be able to see that it’s virtually impossible to pass any program (even for national defense) that would double the current national debt.

I am therefore left to wonder:

1. Will ObamaCare truly increase the national debt by $17 trillion? Y ___ N ___

2. Is the Obama administration populated by a bunch of idiots? Y ___ N ___

3. Is the national debt actually much larger than is reported by the gov-co? Y ___ N ___

I assume the answer to #1 is Yes–ObamaCare will increase the national debt by $17 trillion.

The answer to #2 is Maybe–clearly some of the Obama administration are idiots, but whether the idiots are predominant in unclear.

The answer to #3 is Yes–the national debt is much larger than reported by the gov-co. And that’s the big implication of the ObamaCare/national-debt issue raised by Senator Sessions.

I.e., John Williams at ShadowStats.com claims that the true national debt is about $75 trillion–about 5 times greater than the $15 trillion claimed by gov-co. I believe Williams is roughly correct. I’ve seen other credible sources who claim the “real” national debt could be as high as $200 trillion–13 times greater than the $15 trillion currently claimed by gov-co.

If the national debt is $75 trillion, then adding another $17 trillion won’t double the debt but will merely increase it by about 23%. Enacting a law that might increased the national debt by 23% would be ticklish, but far more doable than doubling the national debt. The Obama administration would have to be dominated by idiots if they tried to enact a program that would double the national debt. There’s no way such program could be achieved. trying to do so would be political suicide. But enacting a law that would only increase the national debt by 23% could be done by men who were smart and determined.

If the real national debt is actually closer to $200 trillion, adding another $17 trillion is peanuts–less than 9% of the existing debt–and no one would complain about that trivial additional cost. The Obama administration would be idiots if they did not try to enact ObamaCare.

Assuming Sen. Sessions’ claim (that ObamaCare will increase the national debt by $17 trillion) is true, it’s virtually impossible for the Obama administration could be dumb enough to fight to pass a program that would double the alleged $15 trillion national debt.

If ObamaCare will increase the national debt by $17 trillion, the only way that the Obama administration would dare to fight for that program would be if they knew the real national debt was so much greater than the $15 trillion currently claimed that an extra $17 trillion would not be much of an overall increase.

If ObamaCare will really increase the national debt by $17 trillion, that fact may reveal less about ObamaCare than it does about the true size of the national debt. If ObamaCare will add $17 trillion to the national debt, the real national debt can’t be a mere $15 trillion. Instead, the true national debt must already be in the neighborhood of $75 trillion (as claimed by John Williams) or even $200 trillion as claimed by others.

ObamaCare is not the most important issue. The real issue is the true size of the national debt. It will be hard to repay $15 trillion. It will be impossible to repay $75 to $200 trillion.

If the real national debt is $75 trillion (or more) and therefore impossible to repay in full, what is the true value of US bonds–some substantial portion of which cannot be repaid? What will be the value of paper dollars if the gov-co attempts to inflate its way out from under the national debt? What will be the value of stocks, bonds, retirement funds and bank accounts denominated in US dollars if the gov-co attempts to inflate its way out from under a $75 trillion (or more) national debt?

If ObamaCare will add $17 trillion to the national debt, that’s indirect evidence that the national debt is already five times (or more) greater than the currently reported national debt of $15 trillion. It’s also indirect evidence that we’re going to see significant inflation before the dollar dies.

Source: Adask

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