Friedberg warns US debt service could hit $1.5 trillion, over a third of the federal budget.
“We're spending $800,000,000,000 a year on debt service right now. That could skyrocket to $1,500,000,000,000 which is over a third of the federal budget each year going into next year.”
Friedberg warns the US is already paying a trillion dollars annually just in interest on federal debt.
“And this year, we're already paying a trillion dollars just in interest on the debt that the federal government owes to its bondholders, to the people that own treasuries.”
Friedberg explains California court precedent prevents any reduction in promised public employee pension benefits for life.
“And so there's precedent in California state court that you cannot change pension benefits on the date that someone was hired. You can never change their future benefits.”
Friedberg states California has 600 billion to one trillion dollar pension shortfall.
“The estimate currently is that there's 600,000,000,000 to a trillion dollars in the whole. Okay?”