National Debt just hit $12,031,299,186,290.07 officially at 3:00 p.m. EST November 17, 2009.
History has confirmed that American economic policies, followed by administration after administration, since FDR's beloved New Deal have resulted over time in increasing federal deficits, the national debt, and our reliance on most everything foreign. Now that's not to say foreign competition is bad, but when our country is increasingly owned or controlled by overseas economic and political interests we as a Nation are in serious trouble. The policies of the past 76 years ain't gonna get us out of trouble by continuing to do the same things and expecting different results. Isn't that one definition of insanity?
So, lets not really break out the champaign, rather let us send honest and capable men and women of real vision to Congress and the Presidency. People with the knowledge, character, strength, ethics, and morality that will guide them in the work of government. The honest and legitimate work of governing. Not running a national candy store where it is believed government must be Santa Claus to govern the nation and its people.
But I digress. Here are some things that all American might consider, and then resolve to take action on at the polls, and in any other way they may feel inclined:
1) The National Debt has increased 1 trillion dollars in eight months, or 125 billion per month.
2) The federal budget deficit for 2009 was 1.42 trillion dollars, or more than three times the previous years record breaker.
3) A large share of the increase in both the deficit and debt are the result of government intervention with its stimulus and bailout policies. The increased unemployment, resulting in a reduction in federal tax receipts was an added multiplier.
4) The National Debt has increased by 1.6 trillion dollars on Obama's 10 month watch, or 177.8 billion per month. By contrast the national debt increased 4.9 trillion dollars over the 8 years of the Bush administration, or 51 billion dollars per month.
5) The White House projects that by the end of the current fiscal year (2010) the National Debt may top 14 trillion dollars.
6) Projections (White House budget review) are the National Debt will hit 24.5 trillion dollars by the end of the decade. This will exceed the projected Gross Domestic Product projected at 22.8 trillion by 1.7 trillion dollars.
Of course with all this red ink the call to raise the National Debt Limit is being heard with urgency in Washington. It is worth noting that the cost to taxpayer was over 383 billion dollars just to maintain the National Debt.
What is even more frightening is the share of our Debt held by foreign countries. Of the 3.5 trillion dollars held by foreign countries, or 30% of the total, China holds almost $800 billion in U.S. Government securities with Japan a close second at $731 billion. Several smaller nations lending money to the U. S. include Taiwan, Luxembourg, Ireland, and Singapore.
This crushing National Debt is affecting the security of individuals and businesses throughout this great nation. The cost of our current National Debt, broken out by every man, women, and child amounts to $32,974.34. It is becoming increasingly clear that something must be done or our nation may at some point in the not to distant future stand in default.
While the President, in his dream world, believe socialized national healthcare is part of the solution to this problem, it is but a fairy tale. One only need to look at the historical economic data to see that entitlements only serve to add to the burden of debt, as does war.
There are but three obvious, albeit difficult, ways to bring our National Debt and deficits under control. Cut spending, raise taxes, or a combination of the two. If common sense and rationality prevails (in Washington it ain't likely) we would significantly reduce spending by 25 percent, increase taxes by 2.0 percent when the economy recovers, and run the Government on a program of austerity until such time as we show annul budget surpluses. When stability and surpluses are reached and maintained, taxes should be reduced on both business and individuals to further encourage investment and savings.
In addition, the Federal Government by law, should be required to maintain a positive balance at the close of each and every month. Since the Government produces nothing, creates no wealth, and does not contribute to the growth of our economy, it is even more important that it be held to tight and stringent accounting practices as well as laws to curb its appetite.
Having offered the above, if I were a betting man, the bet would go like this, government increases taxes on suffering businesses and individuals alike, while at the same time increasing spending on entitlement programs and foreign aid to third world countries, extends its reach into the lives of each and every individual thereby further limiting liberty, and all the while saying it is good for the people and the nation.
I really hope that Obama and the current crop gets it right. I really do. I won't be holding my breath.
Via: CBS News