In fact, a new working paper by University of California-San Diego economics professor James Hamilton estimates that the US was on the hook for more than $70 trillion in off-balance sheet liabilities at the end of 2012.
Here’s Hamilton’s tally.
Housing related commitments-$6.112 trillion—Debt of government sponsored entities PLUS $1.408 trillion—The notional value of the mortgages that the government-sponsored entities packaged up and sold off to investors after “guaranteeing” them.
Student and other loan guarantees-$325 billion
FDIC-$7.406 trillion—the value of the deposits insured by the Federal Deposit Insurance Corp
The Federal Reserve-$1.128 trillion—
Social Security- $26.5 trillion+
Medicare-• $27.6 trillion+
Other government trust funds-$1.86 trillion, such as the Civil Service Retirement and Disability Fund and the Military Retirement Fund.+
Total-$70.08 trillion
Hamilton writes: “Acknowledging their size is a necessary first step for making wise policy decisions.”