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Partical;

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Submitted By blackcatjane
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In addition to debt held by the public, the Government reports about $4.6 trillion of intergovernmental debt outstanding, which arises when one part of the Government borrows from another. It represents debt held by Government funds, including the Social Security and Medicare trust funds, which are typically required to invest any excess annual receipts in Federal debt securities. Because these amounts are both liabilities of the Treasury and assets of the Government trust funds, they are eliminated in the consolidation process for the Government wide financial statements. These are placed at the implicit end of the spectrum because the federal government is not legally obligated to pay future Social Security and Medicare benefits. Congress can change the benefit structure, and it has done so in the past. These exposures flow from expectations that the public holds about the government’s responsibilities. The amounts of and public’s reliance on future benefits place these programs among the most significant fiscal exposures. The Financial Report of the United States Government, which includes a Statement of Social Insurance, while the Government’s immediate priority is to continue to foster economic recovery, there are longer term fiscal challenges that must ultimately be addressed. Persistent growth of health care costs and the aging of the population due to the retirement of the “baby boom” generation and increasing longevity will make it increasingly difficult to fund critical social programs, including notably Medicare, Medicaid, and Social Security. If budget deficits continue to occur, the Government will have to borrow more from the public. Instances where the debt held by the public increases faster than the economy for extended periods can pose additional challenges.

http://www.gao.gov/special.pubs/longterm/debt/keypolicy.html
http://www.gao.gov/financial/fy2010/10guide.pdf

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