Debt’s truth and consequences – American struggles

Posted By Bonnie Alba On July 3, 2010 (4:00 am) In Top Page News, Voices and Choices

Millions of Americans lost all fiscal common sense over the last 25 years. They bought homes with huge mortgages, made payments on two-plus vehicles along with never-ending credit card payments — most during the 90s pseudo economic upturn. It was the great illusion which lured all into its masterful trap. The debt trap became a way of life.

“No generation has a right to contract debts greater than can be paid off during the course of its own existence.” – George Washington to James Madison 1789

Just as government did, people did. Long ago, the federal government accepted that debt was good, nothing to worry about. Americans fell into the debt trap all too easily, lured by offers they thought they could pay back. Unfortunately many went beyond their incomes and fell into a black hole, unable to see a way out. Savings decreased to almost zero while spending increased with no end in sight.

As the people abruptly awoke to their personal financial peril, they discovered the government’s propensity for spending and increasing a National Debt beyond common sense, imperiling our nation’s fiscal sovereignty and future generations.

What the federal government had been doing for at least 80 years and offered to the people was a way to “have it all.” We took the cheese and ran with it. But the trap had a delayed spring. When the spring released under the weight of economic pressures, it caught many people unprepared.

This has caused many Americans to stop, think and change their consumer habits. They are now paying off their debts — if they still have jobs. And saving too.

Rather than listen to present-day political leaders and so-called economic experts, many of us, perhaps millions, are seeking and listening to the wisdom of those who came before to include the founders. Not only listening, but taking on the responsibility of rebuking and correcting ourselves and our government.

Meanwhile the liberal democrat philosophy repeatedly chimes the mantra that annual deficits and the National Debt don’t matter, that debt shouldn’t slow government growth down at all. This while nations including the United States are headed towards fiscal disaster. The Republicans have also failed. There are very few real fiscal conservatives now serving in Congress.

What federal and state governments have done and continue to do fiscally is an insult to most Americans. Or, should be.

It is said that a government budget cannot be compared to a regular family’s income, expenditures, savings and debt. Americans beg to differ. There is no difference and, as we see occurring before our eyes, nations, including America, are financially failing worldwide. Why? Plain and simple: Continually spending more than income received over decades.

America and other countries have enjoyed over 50 years of prosperity which led many to believe it would never end. The reality is that what goes up is very likely to come down.

When families suffer from financial hardship, what do they do? Increasingly Americans are tightening their belts and recovering from the debt trap. With the high number of foreclosures and rising bankruptcies plus job losses, Americans are going through a financial struggle they didn’t ever think could happen.

Our personal family experience: In the mid-seventies, my Army sergeant husband and I realized we would enjoy more financial freedom if we paid off our debts and increased our cash flow. With three growing children, our credit card debt was growing while making minimum payments in addition to monthly car payments. We were barely making it. Thus, we embarked on a strict budget. It was not easy with many stops and starts along the way. The important thing is we did it. At the end of three years, we were debt free, giving us the increased cash flow which enabled us to live within our means.

Should a government’s fiscal budget be any different than a family budget?  The people are learning this difficult lesson, but the government shows no sign of common sense. There are consequences for growing the debt. To correct means a time of suffering and sacrifice.

This is one of the top issues for Tea Party Americans. It’s time for our government leaders to seek wisdom instead of their own agendas. Otherwise, the trap of continual borrowing and debt will spring, if not today, tomorrow. If they continue down this irrational road, they will lose their jobs.

Debt is addictive — Americans and government must stop for the sake of our grandchildren and future generations.

Article taken from SmallGovTimes.com – http://www.smallgovtimes.com
URL to article: http://www.smallgovtimes.com/2010/07/debts-truth-and-consequences-american-struggles/

 

Cap-and-Trade treason

Posted By Alan Caruba On April 27, 2010 (6:30 am) In Voices and Choices

If you thought that the way the Obama administration and its cohort of Democrats in Congress rammed through the takeover of the nation’s healthcare system was appalling, prepare to watch the same process applied to Cap-and-Trade. Your government no longer represents you, the voter, the citizen.
 
Cap-and-Trade (H.R. 2454) allegedly is about reducing greenhouse gas emissions, but there is no scientific justification for this because there is no “global warming” that requires it, nor is manmade, anthropogenic, generation of carbon dioxide (CO2) a threat to the planet. Just the opposite, everything dies without it; all vegetation and all animal life. Life on Earth would thrive if there was even more CO2.
 
To what end would Congress impose such emission limits when they do not exist throughout China, India, third world “developing” nations, and are being abandoned by European Union nations where the Kyoto Protocol limits have harmed their economies?
 
Global warming has been exposed as a massive hoax and fraud. Why would the United States Senate proceed to enact a bill based on it? In essence, it will make some corporations, utilities, and people very rich and impoverish the rest of us.
 
Having passed the House, the Senate will be handed a huge bill that, like healthcare, few will have read before they vote. It will impose the largest tax the nation has ever seen.
 
The act will bless the various “exchanges” created for the sale and trade of “carbon credits” that have no value whatever. It creates a bubble comparable to the sub-prime mortgage debacle that triggered the 2008 financial crisis and resulting recession.
 
The amount of CO2 will not be reduced because the Earth produces 97% of all the CO2 in the atmosphere. Even then, that amount is the smallest part of the atmosphere that consists of more than 95 percent water vapor!
 
Cap-and-Trade is an act of betrayal because it will destroy the U.S. economy, destroy jobs, and further impoverish Americans in a variety of ways. 
 
The Cap-and-Trade Act that has already passed the House will be put in play by Senators John Kerry, Lindsey Graham, and Joseph Lieberman. It was created in the House by Rep. Henry Waxman and Rep. Edward Markey. They know the bill will set in motion the destruction of the nation whose life’s blood is affordable and abundant energy use.
 
Just as the Obama administration moved swiftly to acquire ownership of General Motors and Chrysler, to take over insurance giant AIG, control one sixth of the nation’s economy through the healthcare act, and is now seeking to expand the regulation of Wall Street, Cap-and-Trade will ensure the destruction of the nation as manufacturing flees to other parts of the world.
 
Beginning one year after enactment, homeowners will not be able to sell their homes without complying with onerous and unnecessary energy and water “efficiency” standards. These standards, moreover, will increase annually. Within five years, 90 percent of the residential market will be controlled by the government.
 
On April 19, the Environmental Protection Agency announced new guidelines for “Energy Star” homes requiring them to increase “efficiency” by 20 percent more than those built to the 2009 International Energy Conservation Code. Home ownership, already the largest expense for Americans, will be further increased by required upgrades.
 
According to the Congressional Budget Office, in a few years the average cost of energy use to every family of four will be $6,800 per year. No one will be exempt from energy taxes and you can expect the cost of a gallon of gasoline to rise beyond $4 to European levels.
 
In Europe, industrial carbon quotas have enriched the continent’s biggest energy users such as steel and cement makers. Their surplus carbon permits, often provided for free, are estimated to be worth more than $4 billion at current market rates by 2012. There is no scientific justification for them.
 
It will be the U.S. government that will determine who receives the initial free “carbon credits”, thus giving corporations that have supported Cap-and-Trade a huge advantage over those who do not. Not only will the government rake in billions from the taxes to be imposed, but utilities will raise their prices and pass it along to consumers. 
 
There is no need whatever to reduce use of so-called “fossil fuels.” There is no need for the “efficiency” and “conservation” measures that will be imposed. If the government would permit access to the nation’s vast reserves of coal, oil and natural gas, none of this would be needed, but it will not.
 
The nation is under attack from within by a consortium of fanatical environmentalists and rent-seeking corporations and utilities seeking to profit from these government mandates and limits.
 
It is the perfect storm. It is treason.
 
Editor’s Note:  Politico.com: (4/24/10) The planned Monday unveiling of a bipartisan climate bill was postponed after one of its three authors, Sen. Lindsey Graham (R-S.C.), said that he couldn’t support the legislation if Democrats moved it to the backburner to focus first on immigration reform. Sen. John Kerry (D-Mass.) announced the postponement Saturday evening, saying that “external issues have arisen that force us to postpone only temporarily.”

 

The FCIC: Passing the buck

Posted By Ron Paul On April 13, 2010 (6:50 am) In Voices and Choices

Last week the federal government’s Financial Crisis Inquiry Commission held hearings as part of their continuing investigation into the causes of the acute economic meltdown which occurred in late summer 2008. This bipartisan commission, partly inspired by the Pecora Commission- which investigated the causes of the Great Depression- is expected to report back to Congress before the end of the year.

Things don’t seem to be going well. The individuals questioned by the commission mostly seem to be diverting blame for the whole fiasco to someone else. Nobody is offering any tangible insights into the causes of the financial crisis.

Predictably, the commission will avoid calling any witnesses who might unequivocally indict the federal government for its role in the crisis, or suggest solutions which take away government power. Government commissions have a remarkable tendency to recommend granting even more power to the same useless government agencies that so utterly fail to prevent crises in the first place. We saw this with the Pecora Commission, we saw it after 9-11, and we’re seeing it again today with regard to financial regulations. For example, this latest commission almost certainly will suggest granting more power to the SEC, when in fact the SEC should be abolished as an embarrassing farce. Rest assured that this recommendation will be made without apology or sense of irony.

The reality is that the Federal Reserve relentlessly expanded the money supply through artificially low interest rates for over two decades, and this expansion of easy money caused a wholly predictable bubble. To a myopic Keynesian regulator, the bubble may appear to be caused by greed, but in truth it is completely predictable that humans will act in their own perceived self interest. If the Fed wants to dole out artificially cheap money, people and businesses- including Wall Street businesses- will line up to take it. We can condemn this as greed, but the fundamental problem is Fed policy itself. There will always be demand for cheap money, but we should not allow the Fed to debase our currency and create bubbles of false prosperity to satisfy that demand.

What the commission really needs are experts who understand free market economics rather than big government Keynesian fantasies. The commission has none of these, and has called no true free market witnesses. That perspective would only distract from their predetermined goals.

The commission will bemoan the complexity and inscrutability of our economic problems, but the solution is simple: allow freedom to operate in our markets. Allow U.S. financial, labor, and housing markets to normalize without political interference. Though solution is simple, and rather obvious, it would not be easy or painless, but we’d be so much better off for it in the long run. It would require admitting fiat money is a tangled web of monetary deception prone to catastrophic failure. It would require allowing Americans to choose a system of sound money, where the money supply and interest rates are set by market forces rather than centralized economic planners. Unfortunately, fiat money is like a drug to a Congress hopelessly addicted to spending vastly more than the Treasury collects in revenues. Because of this, our problems can only get worse and more complex before they get better.

 

Healthcare and economic realities

Posted By Ron Paul On March 30, 2010 (7:49 am) In Voices and Choices

With passage of last week’s bill, the American people are now the unhappy recipients of Washington’s disastrous prescription for healthcare “reform.” Congressional leaders relied on highly dubious budget predictions, faulty market assumptions, and outright fantasy to convince a slim majority that this major expansion of government somehow will reduce federal spending.

This legislation is just the next step towards universal, single payer healthcare, which many see as a human right. Of course, this “right” must be produced by the labor of other people, meaning theft and coercion by government is necessary to produce and distribute it.

Those who understand Austrian economic theory know that this new model of healthcare will cause major problems down the road, as it has in every nation that ignores economic realities. The more government involves itself in medicine, the worse healthcare will get: quality of care will diminish as the system struggles to contain rising costs, while shortages and long waiting times for treatment will become more and more commonplace.

Consider what would happen if car insurance worked the way health insurance does. What if it was determined that gasoline was a right, and should be covered by your car insurance policy? Perhaps every gas station would have to hire a small army of bureaucrats to file reimbursement claims to insurance companies for every tank of gas sold! What would that kind of system do to the costs of running a gas station? How would that affect the prices of both gasoline and car insurance? Yet this is exactly the type of system Congress is now expanding in health insurance. In a free market system, health insurance would serve as true insurance against serious injuries or illness, not as a convoluted system of third party payments for routine doctor visits and every minor illness.

While proponents of this reform continue to defy all logic and reason by claiming it will save money, I worry about cataclysmic economic events. Already investors are more reluctant to buy US Treasuries, fearing that the healthcare bill, along with other spending, will cause government debt to explode to default levels. I had the opportunity last week to address my concerns with both Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, especially about the potential for the coming serious inflation. I am not optimistic that these important decision makers truly understand what is coming, why it is coming, and how best to deal with it.

The Federal Reserve finds itself in an unprecedented and unenviable position. To keep up with government spending and corporate irresponsibility, it has increased the monetary base by nearly $1.5 trillion since September of 2008. Excess bank reserves remain at historically high levels, and the Fed’s balance sheet has ballooned to over $2 trillion. If the Fed pulls this excess liquidity out of the system, it risks collapsing banks that rely on the newly created money. However, if the Fed fails to pull this excess liquidity out of the system we risk tipping into hyperinflation. This is where central banking inevitably has led us.

The idea that a handful of brilliant minds can somehow steer an economy is fatal to economic growth and stability. The Soviet Union’s economy failed because of its central economic planning, and the U.S. economy will suffer the same fate if we continue down the path toward more centralized control. We need to bring back sound money and free markets- yes, even in healthcare- if we hope to soften the economic blows coming our way.

 

Government and gasoline

Posted By Ron Paul On April 5, 2010 (9:06 am) In Voices and Choices

As we head into the summer driving season and gasoline prices are again creeping up, the administration has announced plans to explore opening up more off-shore areas for exploration and drilling. On the one hand this can be lauded as a positive step. On the other hand, it is too little, much too late to have any meaningful or long-term effect on what Americans pay at the pump any time soon, if at all.

Indeed, if increasing domestic energy production was really a priority, the administration would direct the EPA to remove its many roadblocks and barriers to energy production. In fact, abolishing the EPA altogether would do much to improve our country’s economy. Instead of protecting the environment as they are supposed to do, most of what they do simply chills the economy. Polluters should be directly liable in court to any and all parties they harm, rather than bureaucrats at the EPA.

Of course, last week’s announcement was couched in terms of removing barriers and red tape. However, the fact that we had these barriers in the first place is yet another reminder of how the energy market is hampered and controlled by bureaucrats and central planners in Washington, rather than the demands of the people and the decisions of private investors.

Consider how extremely negative our government’s reaction has been to other governments around the world that have nationalized their oil and energy industries, such as Venezuela and Iran. We deposed a democratically elected leader in Iran in 1953 for this very reason. Yet the level of involvement of our government and bureaucrats in energy is nearly absolute. Of course, the only thing worse than our government dictating energy decisions to its own citizens is our government dictating energy decisions to the citizens of other countries.

Along with the waste of prohibitions that leave our own natural resources untapped is the waste our government perpetrates with subsidies to alternative fuel sources. There is certainly profit to be made in perfecting cheaper, cleaner fuel sources, but government subsidy programs interfere with finding realistic long-term solutions. Subsidies divert resources towards certain politically-favored fuel types while ignoring others. If the market were left alone, private investors would put their own capital into the most promising alternative fuels. Instead, due to government incentives, resources are concentrated into politically chosen endeavors that could very well end up being dead ends. Meanwhile, precious time and money is wasted.

The government has the opposite of the Midas touch. This has been observed over and over by the reduced quality and rising prices in every private industry in which it entangles itself. Yet somehow people still seem willing, even eager, to relinquish to government control the most important and sensitive portions of our economy and society. Education, healthcare, and energy are all unfortunate examples of industries that are in my opinion, far too important to be left to government control when it is the market that has the golden touch.

 

“Nullification Laws” passed by the states to fight ObamaCare

“Nullification Laws” passed by the states to fight ObamaCare
Posted By J. D. Longstreet On February 23, 2010 (8:44 pm) In Voices and Choices

In the upcoming “summit” between Obama and the Republicans on his ObamaCare proposal… you know, the one the American people have flatly rejected… you can forget the democrats tossing out anything in the current proposal. Ain’t gonna happen. The dems, with the added weight of Obama, hope to overwhelm the Republicans and force them into folding and agreeing to reluctantly support ObamaCare so they, the democrats, can save face for Obama and themselves.

WE appeal to the GOP to hold fast. Don’t give an inch. This sorry piece of legislation deserves to be flatly, and completely, defeated, with a stake driven through its heart, and committed to the trash bin of history for all time.

It is nothing more than a power grab by the Progressives in the Congress. It is power they will use to ram their remaining socialist agenda through the Congress and into law. It is a sure and certain formula for the utter destruction of our constitutional republic. And that, dear reader is exactly what they want and what they are working tirelessly to accomplish.

If they win, it will spell the doom of the United States of America — at least, what is left of the US today.

They must be stopped at the ballot box!

We warned they would try this. They have — and they are.

Already, the White House is admitting that the “NEW” ObamaCare Proposal is only a “Starting Point” for healthcare legislation. We have warned many, many, times that the current Congress believes the American people are basically stupid. We have warned, just as many times, that they will pass ObamaCare by “Incrementalism,” one small piece of the plan, at a time, until they get the whole “hell spawned plan” in place and the government will have total control of the lives of every American.

It now appears the Obama Regime is readying itself to use the reconciliation process, which requires only 51 votes instead of the usual 60 votes for passage of a budget bill, to pass their abomination of a healthcare bill through the Senate. It appears to this scribe the democrats are still pressing to gain at least one republican vote for political cover in case their plan fails. Woe be unto any republican dumb enough to side with the dems in favor of what is now being referred to as ObamaCare 2.0.

Many conservatives, including “yours truly,” have been fighting ObamaCare for over two years. We began alerting our readers and listeners in the early days of the Presidential campaign and as far back, in some cases, as 2007. Why are we so dead set against government run healthcare? To put is as clearly and concisely, yes, as bluntly as I know h — ObamaCare is socialized medicine, it is socialism, and socialism is the final step a nation takes before becoming a communist nation.

The American people HATE ObamaCare. The American people have told the government we do not want ObamaCare in any form. As evidence of this, look at the number of states that have already amended their state constitutions to ban any kind of government healthcare mandates handed down by the federal government. If you know your American history then you already know this has happened before in the US. Just before the American Civil War broke out into a shooting war, the southern states began passing “nullification” laws, within the states, which nullified federal laws and mandates placed on those states by the federal government of that day. Simply put a nullification law means those states will NOT adhere to, or abide by, those federal laws and mandates. Need I remind you of the next step taken by those states?

The American Civil War did not have to happen. It DID happen because the arrogant US Congress of that day refused to listen to the people of the southern states telling them, flat out, they would leave the Union if the Congress continued to govern against the will of the southern people.

Today the current US Congress is making the exact same mistake the Congresses of the 1840s and 1850s made — and this time, it is not just the southern states warning Congress to take heed. This time, states all over the nation are frantically attempting to get the attention of the federal government by passing modern day nullification laws.

The signs are all there. A blind fool can read them. And yet, the federal government cannot hear them or, worse, it is ignoring them.

This way lies destruction. The peoples of the states have issued the clarion call. Just as the election of 1860 was the turning point, the day the nation split into two nations, the election of 2010 will decide if the US remains one country or shatters into two or more separate nations or confederations of states. One thing is certain: America cannot continue as a single entity of 50 states ruled over by a socialist government.

The 2010 election is the safety valve. If the pressure is released by a purge of the incumbents in the Congress then the US will survive. It the valve remains closed, and no pressure is released, the explosion of the US tearing itself apart will be heard, and felt, around the globe and will spell the end of the Great American Experiment.

 

Census: A little too personal

Posted By Ron Paul On March 8, 2010 (3:55 pm) In Voices and Choices

Last week Congress voted to encourage participation in the 2010 census. I voted “No” on this resolution for the simple, obvious reason that the census- like so many government programs- has grown far beyond what the framers of our Constitution intended.

The invasive nature of the current census raises serious questions about how and why government will use the collected information. It also demonstrates how the federal bureaucracy consistently encourages citizens to think of themselves in terms of groups, rather than as individual Americans. The not so subtle implication is that each group, whether ethnic, religious, social, or geographic, should speak up and demand its “fair share” of federal largesse.

Article I, section 2 of the Constitution calls for an enumeration of citizens every ten years, for the purpose of apportioning congressional seats among the various states. In other words, the census should be nothing more than a headcount. It was never intended to serve as a vehicle for gathering personal information on citizens.

But our voracious federal government thrives on collecting information. In fact, to prepare for the 2010 census state employees recorded GPS coordinates for every front door in the United States so they could locate individuals with greater accuracy! Once duly located, individuals are asked detailed questions concerning their name, address, race, home ownership, and whether they periodically spend time in prison or a nursing home – just to name a few examples.

From a constitutional perspective, of course, the answer to each of these questions is: “None of your business.” But the bigger question is – why government is so intent on compiling this information in the first place?

The Census Bureau claims that collected information is not shared with any federal agency; but rather is kept under lock and key for 72 years. It also claims that no information provided to census takers can be used against you by the government.

However, these promises can and have been abused in the past. Census data has been used to locate men who had not registered for the draft. Census data also was used to find Japanese-Americans for internment camps during World War II. Furthermore, the IRS has applied census information to detect alleged tax evaders. Some local governments even have used census data to check for compliance with zoning regulations.

It is not hard to imagine that information compiled by the census could be used against people in the future, despite claims to the contrary and the best intentions of those currently in charge of the Census Bureau. The government can and does change its mind about these things, and people have a right to be skeptical about government promises.

Yet there are consequences for not submitting to the census and its intrusive questions. If the form is not mailed back in time, households will experience the “pleasure” of a visit by a government worker asking the questions in person. If the government still does not get the information it wants, it can issue a fine of up to $5000.

If the federal government really wants to increase compliance with the census, it should abide by the Constitution and limit its inquiry to one simple question: How many people live here?

 

America: Resist Communism, Socialism and Marxism

Posted By J. D. Longstreet On March 9, 2010 (6:27 am) In Voices and Choices

Well, the BIG Push is on to ram ObamaCare through the Congress and down the throats of the American people.

Obama is jetting around the country holding pep rallies to try to gin up support for the “Bill from Hell” — Socialized Medicine. You should know these rallies include ONLY Obama supporters and ObamaCare supporters. The wild enthusiasm is staged for your benefit to, hopefully, give you the impression that ObamaCare is supported by the majority of Americans. The truth is – it is NOT.

These rallies are all propaganda. It’s “The BIG LIE” told over and over again just as the Nazis in Germany did to convince the people of an entire country they truly desired the socialism of the Nazi Party. I must tell you Joseph Goebbels, the Reich Minister of Propaganda in Nazi Germany from 1933 to 1945, would be proud of the Democratic Party in America today. The Obama Regime has taken a page from the leftist Nazis of the last century on how to brainwash an entire nation into believing a lie. A lie that, once accepted, will spell the absolute doom of America.

The Democratic Party, by itself, simply does not give a damn! They are interested in two things and two things only — and that is to maintain their hold on the government of the US and to ensure their reelection. They simply have no sympathy for what the American people truly want. Plus, THEY DON’T CARE WHAT THE AMERICAN PEOPLE WANT! All that counts is what they, the Democrats, want.

It is called “Command and Control.” A strong central government in charge of a “command and control economy” is their dream — and it is their goal. They intend to reach that goal no matter what — even if it means shredding the US Constitution.

Those of us on the right vowing to throw the Socialists and Marxists, masquerading as Democrats, out of the Congress this November had better watch our backs. The dems are quietly lining up the resistance to our movement and between now and November the right will come under attack, intensifying each day as the election draws nearer and nearer.

They are quietly conspiring with the less literate democrat voters and those who, for generations, have depended on the government welfare dole for their existence. Their intention is to flood the polls in November of 2010 to offset and overwhelm the anti-ObamaCare. These “wards of the federal government” will be flooding the polling places, everywhere in America, to dilute the opposition to ObamaCare and defeat the efforts to save the constitutional republic we know as America. Their intent is to create, once and for all, a Socialist/Communist America. And they may very well succeed!

For years those of us who have had the foresight to see the Socialized Medicine Bill for what it is, even though it is wrapped in the pretty package of ObamaCare, have worked tirelessly to expose it as a true Socialized Medicine Bill anchored in Marxism and Communism.

There are times when this scribe feels as though I am standing in front of a wall shouting the warning at the top of my lungs only to have it bounce back onto myself with little, if any, effect on the people whom the Bible describes as a people who have “stopped their ears.”

I must admit to weariness and fatigue and frustration, as the realization sets in that the masses of ObamaCare advocates, like lemmings, have chosen to follow their own Pied Piper — this time straight over a cliff and into a Marxist/Communist hell-like oblivion.

During this fight, I have gained a better insight into Noah’s dilemma. He preached over and over the warning that a deadly flood was coming and would wipe out every man, woman, and child – but to no avail. As the story goes every one was killed except for the handful aboard Noah’s Ark.

America is on the verge of collapse. The final step ensuring that collapse is the passage of ObamaCare.

 

The cost of President Barack Obama

Posted By Neal Boortz On March 9, 2010 (6:25 am) In Voices and Choices

There is one thing that Democrats, Republicans and Independents can all agree on – the debt we owe is our greatest long-term threat to national security. By a two-to-one margin, Americans of all demographics and political parties believe that the amount of money we owe to China is now a greater long-term threat than radical Islam. They’re right, but it’s must worse than that. The level of debt facing this country will destroy the dreams of our children and grandchildren. It is hard to imagine that future generations will have the opportunity to pursue anything close to the lifestyle we enjoy as they are faced with this crushing debt to retire.

Just how bad is this problem? Read on …..

Last Friday, the Congressional Budget office released a report stating that our projected debt is actually going to be much higher than the White House predicted. Wow! Now who didn’t see THAT coming? The CBO says that Obama’s budget is going to lead to annual deficits averaging $1 trillion for the next decade. The White House’s prediction was an annual budget shortfall of $853 billion for the next decade. Why the discrepancy? Obama expects to bring in more tax revenue. The CBO, on the other hand, does not believe the Obama economy will be able to generate the tax revenue because it expects less economic growth. In fact, the CBO predicts that the deficit will never fall below 4% of the GDP under Obama’s policies and “would begin to grow rapidly after 2015.”

(By the way, as of right now our predicted annual deficit for this year is $1.5 trillion – a post WWII record at 10.3% of our economy.)

But back to this report … the CBO says that deficits of that magnitude would force the Treasury to continue borrowing at prodigious rates, sending the national debt soaring to 90% of the economy by 2020, while interest payments on the debt would also skyrocket by $800 billion over the same period.

Speaking of interest rates, Senate Republican Leader Mitch McConnell puts our interest rates into perspective. He says, ” … in just four years the administration predicts the government will have to spend more just to pay interest on the federal debt than it spends on the Departments of Agriculture, Commerce, Education, Energy, Health and Human Services, HUD (Housing and Urban Development), Interior, Justice, Labor, State, Treasury, and the Corps of Engineers, Environment Protection Agency, GSA (General Services Administration), NASA, National Science Foundation, Small Business Administration and the Social Security Administration — combined.”