Stairway to Heaven: Yet More Unfunded Obligations

This graph from Grant's Interest Rate Observer shows spending on Social Security, Medicare and Medicaid climbing relentlessly after 2012.

Alarming as this is, that stairway to heaven is unlikely to be climbed; surely a day of reckoning will come before the entire geriatric class is supported by a small band of workers taxed at a 90 percent marginal rate. But it’s undoubtedly a huge bill as the worker-to-retiree ratio slips downward from 3:1 to 2:1.

Charles Hugh Smith shows below that we will have to keep running just to avoid falling down.