1. The Coming Fiscal Bankruptcy of
the West
by José Piñera
Presentation at Cato Benefactors Summit
Palm Beach, Florida
February 26, 2010
2.
3. The Bankruptcy of Europe
True debt as % of GDP
(Official + Pension + Health + Welfare)
Germany 418%
Spain 244%
France 549%
Ireland 405%
Italy 364%
Portugal 492%
United Kingdom 442%
Greece 875%
EU 25 Benchmark 434%
Source: Jagadeesh Gokhale, Measuring the Unfunded Obligations of European Countries Policy Report No. 23 January 2009, National Center for Policy Analysis
9. A Conspiracy Against Madrid?
“Spanish Intelligence Reportedly Probing ‘Attacks’ on Economy”
Der Spiegel, 2/15/10
The Economist replies:
“Grow up!”
"Spain is the victim of an international
conspiracy to destroy the country's
economic status and the euro. Nothing
that is happening, including the
apocalyptical editorials in foreign media,
is just chance."
-Jose Blanco, Zapatero's
Infrastructure Secretary
10. America’s $100 Trillion Problem
(Net Obligations of Social Security and Medicare, present value in trillions,
USD)
Hospital
Insurance
Medicare
Part B
Medicare
Drug
Benefit
Social
Security
Pensions
Total
Current
Participants
13.6 12.6 5.6 17.4 49.2
Future
Participants
21.1 21.4 11.6 -1.5 52.6
Total
34.7 34.0 17.2 15.9 101.8
(700% of GDP)
Source: Table 6, 2008 Financial Report of the United States, published by the U.S. Department of the Treasury.
11. "In 1998 President Clinton and his economic advisers spent 18
months secretly discussing the elements of a plan to add
individual investment accounts to Social Security, but abandoned
it when it became clear the president would be impeached,
according to a paper by three former administration officials that
will be presented today at a Harvard conference."
Glenn Kessler, Washington Post, June 29, 2001
The main author of this paper was Douglas Elmendorf, today head
of the CBO and then a deputy assistant Treasury secretary.
