The Fiscal Gap is a measure of total indebtedness; the difference between the present value of all of government's projected financial obligations, including: future expenditures, servicing outstanding official federal debt, and the present value of all projected future tax and other receipts, including income accruing from the government's current ownership of financial assets.
The total debt has been estimated to be 222 Trillion dollars in alternative calculations which give a more accurate value to the US debt, which is being distorted by limited disclosure of figures, and poor methods of accounting that provide further distortion --- a cloak over the debt the United States is obligated to fund and be responsible about. So it would take an increase of 12% in taxes or spending cuts totaling 12% to solve the fiscal gap issue. It is a future projection to balance the debt that is being ignored because of fraudulent data and accounting.
Should the debt problems be allowed to run wild, there could be a run on the banks and decoupling of the dollar. Countries such as China have already set up measures for such a decouple by raising its gold reserves and setting up an alternative to the US dollar such as the BRICS alliance.
The problem is being exacerbated by the monetary policies of the central bank. Perhaps, it is because of the excessive money printing and over-reaction to the stock market --- the Federal Reserve Bank itself --- may be more of a threat to National Security than anything else.
Please see my other articles for further information.
Neal Vanderstelt - Author of Economics Theories, Self-help, and Conspiracies. Find me here on Amazon.
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