Here we are 15 days after the much awaited negotiating, wrangling and best poker playing our leaders in Washington could gin up and the best they could come up with it is a $2.7 trillion dollar increase in our national debt. Which means to us, the common folks of this nation, that our government increased the national debt from $14.5 trillion to roughly $17 trillion – which, by the way, we are ultimately responsible for paying back.
The fear that the Obama administration expelled is that America would default on August 2, 2011, therefore Social Security and Military checks might not get paid. This was an arbitrary date set by Treasury Secretary Gietner. We were told that if this debt ceiling crisis was not resolved the stock market would be un-stable and it would affect the global markets as well. So again 15 days after this crisis management style of our government in raising the debt ceiling the stock market decreased in value by over 500 points anyway, Italy – the 6th largest world economy – is on the verge of defaulting, and the other European markets are in great uncertainty. The American people have “Had Enough” of this kind of sophistry.
There are only two factors that can solve this debt problem. If we do not act and act soon then this country will not be able to pay any of its obligations. The current estimates, that I have researched, say that if the American government continues to borrow at the current level then just the interest owed – not principle or any other expenses by the Federal Government, i.e. us in 10- 15 years- will consume 100% of the total revenues of the entire US Government. In addition Social Security and Medi-Care/Aid in 15-20 years will also consume 100% of the US Government tax revenues. Therefore, within 15-20 years we have two situations that will consume all monies taken in by our Government. One does not need to have an advanced economics degree to see the outcome. We are broke as a nation. The question that should be asked becomes much clearer. Do you want to deal with the $17 trillion in debt now or do you want to deal with a $25-30 trillion debt in 15 years? Either way it must be dealt with. Keep in touch for my next blog on increasing revenues. Thanks.
Vote Ted Yoho U.S.Congress 2012.