Much of the public focus is on the nation’s public debt, which is $14.3 trillion. But that doesn’t include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.

The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.

Taken together, Gross puts the total at “nearly $100 trillion,” that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won’t find a solution overnight.

“To think that we can reduce that within the space of a year or two is not a realistic assumption,” Gross said in a live interview. “That’s much more than Greece, that’s much more than almost any other developed country. We’ve got a problem and we have to get after it quickly.”

Gross spoke following a report that US banks were likely to scale back on their use of Treasurys as collateral against derivatives and other transactions. Bank heads say that move is likely to happen in August as Congress dithers over whether to raise the nation’s debt ceiling, according to a report in the Financial Times. 

The move reflects increasing concern from the financial community over whether the US is capable of a political solution to its burgeoning debt and deficit problems. 

“We’ve always wondered who will buy Treasurys” after the Federal Reserve purchases the last of its $600 billion to end the second leg of its quantitative easing program, Gross said. “It’s certainly not Pimco and it’s probably not the bond funds of the world.”

Pimco, based in Newport Beach, Calif., manages more than $1.2 trillion in assets and runs the largest bond fund in the world.

Gross confirmed a report that Pimco has marginally increased its Treasurys allotment—from 4 percent to 5 percent—but still has little interest in US debt and its low yields that are in place despite an ugly national balance sheet.

-www.cnbc.com, 13 June 2011

When one reads the various commentaries from experts, it creates more confusion. Justifiably, there is much blame to be placed on various government departments and private entities, but we venture to say that the greatest blame lies with each citizen of the U.S.A. Americans continue to indulge in “cheap energy.” Under $4 a gallon for gas is indeed “cheap” when compared with the progressive world, of which most pay $8-10 per gallon.

Electricity consumption is measured by kilowatt hour. It’s abundantly available at a cheap rate of 10-15 cents, while Europeans have to dish out 45-55 cents for the same. Where does America get the money from to buy the energy? Borrow it from communist China, Japan, and Europe. Thus, payback time is yet to come.

            The greatest tragedy, however, is that no politician or head of government would dare mention America’s tradition of wasteful energy consumption—it remains an untouchable “sacred cow.”

            This paints a good picture for believers. We can never, ever repay our debt or earn our salvation. Our hopeless condition is documented in Ephesians 2:12: “That at that time ye were without Christ, being aliens from the commonwealth of Israel, and strangers from the covenants of promise, having no hope, and without God in the world.” Yet, contrary to America’s political, economic, and financial turmoil, the Church of Jesus Christ, consisting of true believers, has direct access before the throne of God through faith in Jesus Christ our Advocate. We may draw from the fountain of grace more and more until we complete our task and fulfill His great commandment, “Go ye therefore, and teach all nations, baptizing them in the name of the Father, and of the Son, and of the Holy Ghost” (Matthew 28:19).

(For more on America’s debt problem, read Bankruptcy of Our Nation, Item 2244.)

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