Debt, how can we owe so much? Our National Debt is now officially $21 Trillion.
The debt is $67,000 for each man, women, and child in America, Congress has mortgaged all our future.
The national debt limit has been raised 74 times since 1962. The most recent increase was for $318 billion, allowing a total debt of $21.16 trillion. This increase only covers government spending through Dec. 8.
• So far, this fiscal year, the national government has paid more than $534.6 billion in interest on its debt. The high mark was set in the fiscal year 2011 when almost $454.4 billion was paid.
• Our national debt is not just owed to those who buy US Treasuries; it is also owed to other government agencies that had operated at a surplus, such as the Social Security Administration.
•The phrase “debt ceiling” must be taken with a wink and a nod, of course, because of Congress, which spends the money, is also the entity that increases the amount the government can borrow.
Borrowing has at least three problems that affect all Americans.
First, borrowing makes the government look more efficient than it is. What if Congress and the president had to tax the populace for the entire amount of the federal budget? The budget is $4.447 trillion, how would Americans feel about that tax burden. Government spending might come under scrutiny as never before, and that might prompt a radical reevaluation of the government’s role.
Second, borrowing mortgages the future of all Americans, those living and those yet to be born. The unborn have had no vote or say in the tax burden they will be facing. They start out in the hole.
Third, the taxpayers share of our government’s failure to balance the budget is currently $67, 000 for each many, women and child in America. And the debt is sure to increase. Imagine the debt at $30 trillion? $50 trillion? How much more liability can we put on the backs of future generations?
The government does have an ace in the hole; the US Treasury can just create new money through the Federal Reserve, money that comes from thin air. What happens when the money supply becomes out of balance? Inflation! Don’t forget; inflation can undermine society.
It’s time for our government to stop borrowing, to stop mortgaging our future. The same government that owes more than it can pay has mortgaged all our children’s, and grandchildren’s future knows more about financial advice than we professionals who provide it for a living.
I for one am well beyond disgusted with Congress and all the bureaucrats who feed at the trough.