Right now our government is balanced on a swords edge, fall one way and its a major depression. Fall the other way, and its hyperinflation.
The motivating force to hyper inflation, is that the Congress wants to get reelected. It has to deliver more and it is in a bind to do so, so they have to cheat. Its very easy to pay for health care costs with printed money, its very hard to tax and raise it at this time, the amount needed is more than is being taken in.
The fixed cost for social security is increasing and if you figure in medical costs, you get numbers that are out of whack. A heart bypass is $50,000. How many people have contributed over $50,000 total into social security?
Now if you figure that there is a 12 trillion dollar real estate bubble out there and it is funded by private institutions (Mutual Funds or what ever you call your retirement fund), you now begin to see the size of the problem.
The losses cannot be guaranteed to be paid by Congress, I fear they are way too large. The problem at this point in time is, that we are looking into a dilemma, which way will it go?