by Jack Lee
We keep hearing about this so-called fiscal (financial) cliff, but few people seem to understand what it really means. So, here is the explanation, in brief, which is probably more honest and comprehensive than anything your $176,000 a year Congressperson has read.
Background: The first national debt ever was probably caused by a war. It is always expected that during a war a nation (any nation) must borrow what it needs to defend itself. Wars are historically very expensive, but despite the significant number of wars in our history, including two very expensive world wars, it’s taken slightly over 200 years for the National Debt to reach the trillion dollar mark (1977). Then it only took about another 10 years to reach $2 trillion dollars. 4 years later our debt was at 4 trillion dollars and in 05 our debt doubled again, to $8 trillion! Now, in 2012 the US debt is about to cross the infamous $16 trillion dollar mark and for the first time our nation’s debt will be equal to the sum of our gross national product…that’s why I called it infamous. We owe as much as we are worth and that is really dangerous when compared to our credit rating, our government bond value and ultimately the strength of our dollar. if you need graphs see reference (5) located at the bottom of page two.
Extrapolate this unabated credit card spending scenario out to the year 2050 and the US debt will equal about $90 trillion or an amount equal to sum total of all the wealth in world! But, don’t worry, our debt won’t get that high – we will implode long before that happens. Our best minds think we’ve got maybe another 10-15 years.
Let me pose this dire situation in another way, the U.S. government has borrowed, some might say stolen, $16.3 trillion and climbing, from future generations of Americans until we’re zeroed out our profit and loss statement.
This horrific debt currently increases by l over a hundred million dollars every single day day. During the Obama administration, the U.S. government has accumulated more new debt than it did from the time that George Washington became president to the time that Bill Clinton became president. (1)
The $15 plus trillion spending binge that we have been on for over the past 3 decades has given rise to a high standard of living, but. . . this was built on borrowed money!
We’ve created the illusion of prosperity without establishing the underpinnings for it to be sustainable. This prosperity is built like a house of cards. We can reasonably say this credit card generated prosperity and all the entitlements that come with it, one big fat lie – perpetrated upon the American people by their elected representatives in both parties!
Yes my friends, I have just said both party’s are too blame,. Sorry to burst your partisan bubble, but it’s 100% true and I’m not going to provide cover for either side. Both sides have had their own special time when they could have developed a realistic plan to achieve a balanced budget and they didn’t. Now we’re in serious trouble.