In addition to the $5 trillion identified by the author and David Hendler of CreditSights, there are rumblings on the horizon of a growing storm of consumer credit card and college loan defaults.
Some estimates place the potential amount between $1.5 to $2 trillion.
With the financial and banking sector unwilling to take the losses, as Hendler accurately points out, the taxpayer may well be placed on the hook for what is ultimately $7 trillion dollars over the course of just 18 months. That in addition to a National Debt that has continued to grow by an average of $3.95 billion a day since September, 2007.
As of today, each citizen's share of the National Debt is $34,851.77.
On average, I have about 60 students a semester. So, if all of us were so kind as to send our checks off to the Treasury for our share this afternoon, collectively we'd knock out our $2,091,106.20 share of the tab.
While I'm sure Hank Paulson would be oh so appreciative and inspired by our selfless act of noble citizenship, at a party that's running up a roughly $4 billion bar tab a day, that's not even a round of well shots, much less top shelf or my personal favorite, Jagermeister.
As I told my American Government class last night, what is truly frightening is the increasing ease with which commentators, politicians and governmental officials discuss trillions of dollars in debt.
We're long past the fabled "a billion here, a billion there and pretty soon you're talking about real money."
Make no mistake about it. This is GENERATIONAL debt we're talking about here.
Debt that will outlive the political leaders, captains of industry and fallen financial titans responsible for it by decades and yes, generations.
Despite this, Democrats in Congress will no doubt move diligently ahead with a universal health care program that conservative estimates indicate will add an additional $75 to $100 billion dollars to the annual budget deficit a year. With inflation, that's another $1 trillion tossed on to the National Bar Tab over a decade.
Then again, when you're running half a trillion dollar deficits annually and toss on between $5 and $7 trillion in a single a year, what's another $100 billion between friends?
The problem is no one's had the good sense to close the tab, much less give any serious thought as to how we're going pay it off. To hell with the hangover, this should instantly sober up every American from the halls of Congress to baby's lying in maternity wings with an instant $35,000 IOU attached to their birth certificates.
I'm not fool or arrogant enough to think I have the answer that will magically get us out of the dire straits we currently find ourselves in. However, I would dare say a first step is to take a deep breath, calm down and look at the long term, generational impact of the decisions that are currently being considered by our leaders.
Put the shot glass down, close the tab, step away from the bar, drink a pot of coffee, toss back some Tylenol and think this thing through. Failing that, we're going to drink ourselves to death and leave our children, grand children and great grand children to struggle to pay off the tab.
