White House economist says US should be bankrupt

Beijing News.Net
Thursday 28th February, 2008

A former White House adviser for four US presidents says America is on the verge of financial and political upheaval unless the country makes substantial changes in the very near future.

Speaking at the University of Utah, Stephen Studdert, author of the book 'America in Danger, What You Must Know to Protect Yourself,' said the country is facing economic threats on various levels, including growing government and corporate debt.

He said: 'If the government of this country were a business, it would have to declare bankruptcy.'

Mr Studdert said he was especially concerned about unfunded federal liabilities, especially Medicare and Social Security.

During his speech he warned: 'Unfunded pension liabilities on the private-sector side are enormous, while over-obligations that are unfunded by municipalities, state and local governments are troubling.'

The biggest threat to the US, he said, is China's exponential growth that has put it in a position to replace America as the world's foremost economic and industrial power.

'Saudi Arabia has the potential to cause us an overnight economic calamity because our economy is literally dependent upon their supply of oil to us,' he said.

Studdert, served as adviser to Ronald Reagan, Gerald Ford, George H.W. Bush and Bill Clinton.

Have your say on this story