United States: National Debt

The national debt is the single greatest threat to our national security as well as it is a threat to our national economy. When our national debt is as large as it is today, it threatens the very sustainability of the United States. As you can see, I have the real-time national debt counter running on all of the pages of this blog. My reason for displaying the debt counter is that I believe the national debt is the current greatest threat to our way of life. As you can see from the counter, our gross national debt is over 16 trillion dollars.

How big is 16 trillion? Let’s compare dollars to inches, with each dollar bill being 6 inches long. If we were to put the dollars end to end, our trail of dollars would stretch past the planet Saturn and would reach most of the way to Uranus.

The gross national debt is only a small portion of the total debt that threatens our nation. The total national debt which includes household, business, state and local governments, financial institutions, and the federal government come to over 58 trillion. [See US Debt Clock]

We also have our unfunded liabilities (social security; medicare; prescription drugs {medicare part D}) and they come to a total of 121 trillion dollars. [See US Debt Clock] So when we add our total national debt to our unfunded liabilities . . . . . well . . . we have run out of solar system and we are headed out into deep space.

Solving the Debt Calamity: See: United States: Economic Crisis


United States: Economic Crisis

The United States U.S. Federal Debtis in an economic crisis. This economic crisis is one of the worst, if not the worst, in our nation’s history. There were complex factors in play for many years that contributed to the creation of this crisis. There are, however, just a few bold moves that can reverse the trend thus preventing a economic catastrophe.

The leaders of our great nation, must cut federal spending while increasing federal revenue without raising taxes. So we need a leader with the courage to set a target of federal spending cuts, as a percentage of GDP, and cut nonessential programs and bureaucratic overhead until the target spending cuts have been achieved. Our economic crisis is a federal emergency, so these cuts should be swift and decisive.

Then our leaders need to create substantial increases in federal revenue without raising taxes. This can be accomplished by unleashing our nation’s energy industry. The federal government needs to deregulate and promote the production of natural gas, petroleum and coal. The federal government can accomplish this by fast tracking permits for energy production on federal lands while providing incentive to start that production in the very near term.

This quick and simple strategy would put millions of people back to work while producing the federal revenue required to address our nation’s crushing debt. The vast migration of the unemployed back into the work force would provide great relief for the depressed housing market.

The national debt, the employment situation and the depressed housing market sustains our economic crisis and rises to level of a national emergency. If we are to rise to the challenge of this emergency, bold initiatives must be implemented in months, not years. Otherwise the economic crisis will degrade into a catastrophe. An economic catastrophe, would result in a crippled declining economy that would last for decades. Such a crippled economy would produce long term pain, misery and desperation for the middle class and would be absolutely devastating for the underclass as upward mobility would grind to a standstill.

There is only one team that has anywhere near the experience to turn this grim situation around. That team is the Mitt Romney – Paul Ryan team. Mitt has extensive experience flipping large failing organizations into success stories and Paul Ryan has unmatched expertise in the mechanisms of our national economy. We may have only one more shot at preventing our economic crisis from turning into a national disaster.

Choose to stand to the challenge.

Choose to Restore the United States of America.

Cast your votes for smaller government, less federal spending and serious federal debt reduction policy.


“It’s the Economy Stupid”

ForeclosureWell we’re not stupid but the economy is extremely complex. The one thing we all know is that the economy is the one thing, politicians talk about, that has an ever present influence on our lives. A precise understanding of the economy requires advanced chaos theory and super computers to even attempt the building of a scientific model. The basics, nonetheless, still come down to how much we spend compared to how much we earn.

We all know the economy is in horrible shape. Our housing market is in the tank and unemployment is between 8 and 21% depending on which metric you use. Consumer confidence is near an all time low and people are afraid to spend their money.

Anyone who has managed a household, however, can tell you how to cope with a weak economy. If you consistently spend more then you make, you are headed for big trouble. The household economist knows that if one of the household income earners loses their job, household spending will have to be substantially reduced to save the household.

So when millions of people lost their jobs in our country, our government went on a spending binge in an attempt to spend our way out of the biggest economic bust since the great depression.

Without understanding the complex subtleties of our economy, it still makes sense to believe that reducing our national spending while increasing our revenue would be a good strategy to restore the nation to economic health.

On the revenue side, we need to pick an industry with the largest potential market and dramatically expand this industry. This industry needs to be a known and understood present day market an not a gamble on some presupposed future market. See: U.S. Energy Policy: Fossil Fuels

We need dramatic cuts in spending. Inefficient government programs, including redundant departments, frivolous programs and numerous ear mark programs should be eliminated. We should also consider a moratorium on non-essential programs and entitlement spending, so that more near term revenue gains can be used to trim the nation’s crushing debt.

Increasing taxes on any sector of the economy has the effect of producing a drag on that economy. It is better to produce more government revenue by expanding the economy and not by raising the tax rates. Inequities in taxation would be better addressed by reworking and simplifying the tax code which can be addressed after we are out of the crisis.