Thursday, November 04, 2010

Former BB&T CEO: Bankruptcy of U.S. is "Mathematical Certainty"

You may recall that several trillion dollars ago, our pal Joe Biden told us we have to spend money to keep from going bankrupt as a country.

Would you believe that cockamamie idea isn't working out too well?
John Allison, who for two decades served as chairman and CEO of BB&T, the nation's 10th largest bank, told it is a “mathematical certainty” that the United States government will go bankrupt unless it dramatically changes its fiscal direction.

Allison likened what he sees as the predictable future bankruptcy of the United States to the problems at Fannie Mae and Freddie Mac, whose insolvency he also said was foreseeable to those who studied their business practices and financial situation.

“I think the first thing we have to realize is where we’re going and to face it objectively,” Allison told, when asked about the trillion-dollar-plus deficits the federal government has run for three straight years, the more than $13 trillion in federal debt, and the $61.9 trillion long-term shortfall the government faces (according to the analysis of the Peter G. Peterson Foundation) if the government is to pay all the benefits it has promised through entitlement programs.

“If you run the numbers, on all those numbers that you just talked about, which I think are accurate, very accurate, in 20 or 25 years, the United States goes bankrupt,” said Allison. “It’s a mathematical certainty."
Good call there, Mr. Vice President.

Got any other bright ideas?

Hey, it was worth a shot.

Cross-posted here.

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