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?”
Friedberg states California pension shortfall is estimated at $600 billion to $1 trillion in unfunded obligations.
“There are some estimates that say that the pension shortfall in California for public employees that have retired is 600,000,000,000, maybe as high as a trillion dollars short of the legal obligations of payments that need to be made to those retirees”
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 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.”