America the Banrupt

Our country is in big trouble.   In June, the federal deficit, the amount of our annual overspending, topped the $1 trillion mark for the second straight year.  We are teetering on the brink of bankruptcy and, at the urging of the Obama Administration, Congress continues to spend, spend, spend.

When Obama took over, the national debt was $10.6 trillion.  Now it’s over $13 trillion.  By the end of next year it will be closer to $16 trillion.

We have reached the danger zone, and while most American’s are concerned, they cannot begin to understand the depth of the hole we have dug for ourselves.

Most of us hear a number like $16 trillion and it doesn’t register.  The sixteen part we can get.  Sixteen is a relatively small number.  “Sweet Sixteen” marks the end of the age of innocence.  It’s the age, in most states, where you can get a beginner’s driver’s license.  At sixteen, you can, legally drop out of school and get an adult job.  But, you still can’t drink, vote or join the military.   In other words, your still technically a kid.

It’s the trillion part that is way beyond comprehension.  Most people can’t even begin to write out that number.  A trillion is a one with 12 zeroes after it.  A trillion is a thousand billion or a million, million.  Does that help?   I didn’t think so.

I asked the folks at the National Taxpayers Union Foundation to help me put it in perspective for you and here’s what they came up with:

•    If you had a stack of a trillion pennies and glued them all together, it would circle the earth about 4,000 times.

•    If you spent a dollar every second of every day, it would take 31,600 years to spend a trillion dollars.

•    If you paved a four-lane, 50-foot-wide highway with $1 bills, it would be 380,000 miles long.

•    It would take a workforce of 440,000, earing the current average wage, a lifetime of 50 years to earn.

It took our country 205 years, until 1981, for our national debt to reach $1 trillion.  It was $10.5 at the end of the administration of George W. Bush.  We are now burning through trillions as if it were pocket change.

What does that mean for us?  What does that mean for our children?

For many years, the Office of Management and Budget was required  to give an estimate of the level of taxation a child born each year could expect when he or she entered the workforce in order to sustain the present level of government.   President Clinton abandoned the requirement when it reached 85 percent, because it was just too scarey.

Those children born during the Clinton Administration are now between the ages of 10 and seventeen.    When Clinton left office, the national debt was $5.7 trillion.  Looking back, we could refer to those years as the good old days.

The Congressional Budget Office has projected that the federal debt could reach 87 percent of America’s gross domestic production by 2020 and surpass 100 percent of GDP by 2025.

That’s the point of no return.

Obama’s policies are backwards.  The stimulus money is a giant slush fund, much of which was used for liberal programs that would not have passed if subjected to the normal budget process.  The current fight is over whether to use some of the money that is still in that slush fund to extend unemployment benefits or run up the nation’s debt even further.  Please!

You cannot dig your way out of a recession by increasing the size of government.  Government is a drain, not a stimulus, on the economy.  We now know that most of the jobs that have been created were government jobs.

Want to stimulate the economy?   Give us two years to make investments free of the onerous capital gains tax and watch stocks and real estate go through the roof.   The best part of all, the government doesn’t have to spend one dime.  Furthermore, those investments would not be cashed in at one time.   Therefore, this would not be a big drain on tax revenue which, in this economy, is dismal.
Bottom line: we can’t afford lawmakers who can’t balance the budget!

The National Taxpayers Union issues a report card on Congress each an every year.  In the report that came out in February, of the 535 members, only 55 were deemed to be “taxpayers’ friends.”    The rest need to be dumped!  These are tough times, requiring tough action starting with you.

Remember, when we lose the ability to control a fair portion of what we earn, freedom is just an illusion.

9 thoughts on “America the Banrupt

  1. I am very concerned about President Obama’s recent statement concerning us, ““Next year when I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, because I’m calling their bluff. And we’ll see how much of that — how much of the political arguments they’re making right now are real, and how much of it was just politics”[1].

    I keep getting a strong impression that the huge debts are actually for breaking the back of the country and completely demoralizing the nation.

    He knows that government can continue to spend irresponsibly, but saddle us with the consequences forever.

    And I am greatly concerned.

    [1] http://www.whitehouse.gov/the-press-office/remarks-president-obama-g-20-press-conference-toronto-canada

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  2. If losing control of a “fair portion of what we earn” makes freedom just an illusion, the “illusion” started during FDR’s term, and has never ended yet. When congress has spent any money which it does not have in its coffers at the time, it is spending money we have not yet earned, and is therefore not yet available for spending. There is no rational reason for extending the option of borrowing money, to the government of a free and Independent Nation ruled by Free and Sovereign Citizens. We have the ability to fund anything we want of value, by our enormous productivity. This was the most important fear the founders had, because they felt it would lead to laziness among their children, and the loss of the principles of hard work, and self-determination. We have had the most productive run of any Nation in the history of the world, rising from the bottom to the top in less time than any other Nation in history, and today, we could lead the world productively, however we have allowed our elected representatives to spend all the money we ourselves have not spent, along with the equal to our gross national product on top of that, and we have nothing of substance to show for this waste.
    We have reached a point where it is questionable whether the Nation can ever pay off its debts, and that is true only because nations have a special way of looking at debt, and accepting the idea another nation will continue to be around in an undetermined time, in order to repay the debt. There is one, and only one logical answer to the whole issue, that is to discard the whole idea of the debt, since we have not had real money since FDR, and publicly cancel all our debt, and start fresh with money as specified by the Constitution, coined of gold and silver, with the government limited to defining the value, and having no other control over the money, certainly not its supply.
    Our level of “debt” is by no means an accurate representation of money this nation has had, produced, spent, or any other financial aspect, because it is all based on fiat currency, which has no more value in it than monopoly money, and the fact that all the nations have been playing the same game does nothing to make it a valid game. Considering the stated debt our “real debt” is tantamount to considering our fiat currency, real money, and demanding payment in gold for the paper we hold.
    Real money cannot have its intrinsic value manipulated in the way fiat currencies can, and always are, so we have no idea whether we even have any “real debt”, since all our currency has been manipulated in every direction since the Federal Reserve started printing monopoly money. No one gave fair value to my grand parents and great grand parents for the real money they gave up in exchange for monopoly money. I feel no need to give up real value of labor, in exchange for monopoly money which has enabled the government to devalue our currency by well over 95% since the institution of the Fed.
    I’m willing to pay five cents on the dollar for our National debt, provided our nation takes up real money, stops dealing with any nation using monopoly money, and returns completely to the exact limits on government our Constitution established. Until then, don’t say I owe a dime, because I haven’t seen the money yet, to owe.
    John McClain
    GySgt, USMC, ret.
    Vanceboro, NC

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  3. This is exactly right. We are in deep and huge cuts need to be made. The biggest expenses are the worldwide military and wars associated with it, Social Security, Medicare and Medicaid. These make up most of the budget, well there really is no budget it is so bad. These make up most of the expenses.
    The problem is, even the Tea Party people won’t touch these. About half of the Tea Party are neo con people, so there goes cutting out the military empire, and lots of them are older, so there goes cutting Social Security and Medicare. You may see some cuts to Medicaid, but single moms are now gloriously celebrated, so don’t expect too much.
    To make a long story short, the people of this country want the government money and we are screwed.

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  4. Certainly I don’t know what a trillion dollars is and the folks in Washington don’t either. Understanding a “trillion” is not the problem.

    The real problem is that they do not understand one dollar or ten dollars. Until they awaken to the fact that proper stewardship of taxpayer dollars is necessary the number does not matter.

    They do understand the impact on votes and that is why no budget has yet been passed.

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  5. I fully agree that the deficit is a huge concern, ignored by all for generations. We have a tenuous economic recovery following an economic cris, though, and high unemployment and foreclosures still threaten. Now, if ever, is the time for high government spending. The problem is we overspent for decades at times when we actually could have more safely balanced the budget.

    Blaming Obama makes no sense. Goverment spending is a proven way to grow the economy, per Keynes and reality. Goverment spending and intervention also likley prevented an economic collapse. I don’t understand the attacks on Obama; Reagan spent to stimulate when there was no crisis. I do know, though, that the atacks on Obama would be even worse if the economy actually had collapsed.

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  6. When Bill Clinton left office in January 2001, our annual budget was in SURPLUS, not deficit. Why is this not even mentioned, here?

    Ms. Chastain’s policy prescriptions are insanity…
    No capital gains tax and ‘stocks and real estate will go through the roof.’ Really? Really?…A reduction in the capital gains tax (which is much lower than the tax on regular income) will get the economy moving…

    We are not amnesiacs here…

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  7. When Clinton was in his 2nd term, he had already gotten a huge political spanking from the public for his extreme leftist policies; as a result, he cut taxes after the Republicans took over Congress and the Senate. The Republicans controlled the purse strings and created the surplus. Obama, on the other hand, has a bunch of left wing extremists working with him in both Houses. He is running up an extremely huge tab of bankruptcy, and we will become a third world nation before we ever recover. It may take over 20 years just to recover, with 0bama’s huge blunders that he continues to commit.

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  8. An honest Wall Street creates wealth and manufacturing creates things to trade/sell which creates wealth. Service and government jobs do not create wealth directly, those jobs just shuffle money around. But they do create activity which demands products that need to be created which helps manufacuring thus creates wealth. My point in all of this is that our deficit will will come down when jobs are created here in america which creates a tax base to fund our government and pay its bills. At the same time though, our government needs to be working under a balanced budget under every President going forward. If we all do our part, we can work our way out of this mess. The bottom line is it’s not just about stimulating the economy, it’s about creating a real sustainable economy through job and wealth creation that can carry this country onto better prosperity for generations to come.

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