Whoops! Federal Reserve economists looked in the shoe closet recently and discovered more than half a trillion dollars of government bond debt that they hadn’t previously counted.
It turns out that state and local governments in the United States are not $2.5 trillion in debt as previously reported, but $3 trillion in debt. That’s $25,000 for every household in the nation. That debt is on top of the trillions of dollars of other liabilities that politicians have piled on us and our kids, including federal bond debt, federal “entitlement” obligations, and state/local pension and health obligations.
If you want more evidence, read “Institute for Truth in Accounting Report Says States Have $900 Billion Off-Balance Sheet Debt.”