Interest on our national debt for 2012 is over $375.8 billion. Simple math, that’s roughly $31.3 billion a month or a billion plus a day in interest payment. To put things into perspective, in fiscal 2011 the yearly interest on national debt was $454.2 billion. Interest on national debt is a real problem.
These figures are a compilation of debt from various sources: U.S. Treasuries, foreign and domestic certificates of debt, interest on savings bonds, government account series, and debt on state and local government and other securities. Not only is the interest on a growing national debt dooming us, but uncontrollable spending in Washington is making matters worse. Let’s look at the budget.
The United States has not had a budget for three years now because the Democratic Marxist/Socialist controlled senate refuses to approve a budget. It’s too scary a thing for them to contemplate because the president is overspending by a trillion dollars plus each year and no one wants to cut spending.
The Democratic Marxist/Socialists refuse to cut spending or admit that they are largely at fault for the mess we are in, though not entirely. The Bush years were a fiscal disaster as well. Remember, few Republicans in the House or Senate spoke out against Bush’s overspending. To this day Bush defends his descent into economic madness and the TARP bailout, as if completely oblivious to the fact that banks, large and small, have been going into and out of business since the founding of this country. Bush panicked and sounded ridiculous when he uttered the infamous words, “Sometimes we have to abandon the free market to save the free market.”
The dirty little truth is: the real reason for the bank failures is because the government forced banks to make risky loans, then bundle and sell them under the political fiction that the full faith and credit of the United States, Fanny Mae/Freddie Mac, stood behind every bad loan the banks made. Collapse was inevitable.
Still, we have a $3 trillion annual budget and we overspend that budget by a trillion plus each year.
The fact is, public debt is low-balled by our government which calculates the debt to be about $15.8 trillion and growing at an astronomical rate. The debt clock is a frightful thing to watch. It’s as if we are speeding toward the end of a steep cliff and instead of someone shouting – and all agreeing – that we need to put the brakes on this thing before we go over the edge, the major parties seem to be divided on whether to apply the brakes or speed up, expecting no consequences either way. The actions both parties propose are utterly useless and deceptive.
In truth, our fiscal house is a house of cards and everyone knows that it can’t and won’t last. The skyrocketing stock market, based on unsound speculation, is at the top of the deck and will be the first the crumble when the collapse hits. The edge of the cliff is fast approaching and almost to a man the Democratic Marxist/Socialists in the House and Senate are pushing to speed things up, spend more and, oh yes, increase taxes on the rich as if that is a solution. The fact is there are no moderate Democrats left. Just look at their party line votes. If ever there was a reason to clean the House and Senate of Democratic Marxist/Socialists and give the Republicans one more chance, this is the time to act and act decisively. A President Romney with a Democratic Marxist/Socialist Senate will achieve nothing of substance.
It’s time to get serious. The last budget compromise was a sham. Both parties promised to cut a trillion dollars over the next ten years. They actually think we are stupid enough to believe that their proposal is helpful. That’s $100 billion dollars a year from a budget deficit which is itself a trillion dollars plus a year. It doesn’t add up. The false economy the politicians propose is no economy at all and still leaves us with $900 billion overspending each year – and that’s an optimistic number. Things are much worse and a $100 billion cut a year is no solution.
The Marxist/Socialist approach that is now the operating model of the modern Democratic Party is a blueprint for social and economic disaster, the likes of which would scare the hell out of the American public if the American public really knew just how all these deficits affect them. And therein lies the rub: because so few Americans really understand what an economic collapse would look like, let’s examine what this “mess” might actually entail.
Worst case scenario, here’s what’s coming down the road.
The dollar will collapse as our currency and most people’s life savings become worthless. Massive riots will occur in the streets as Obama’s new carefully cultivated vanguard, the “occupy” public, demands more spending to bail them out of the hole they find themselves in. Cities will be in turmoil. Neighborhoods will be destroyed as police sit idle, as they did in the infamous Los Angeles riots. American lives will be lost as neighbor turns against neighbor in the fight for food, shelter, gasoline, household necessities. Supermarkets will empty and close as fights break out and stealing becomes the norm. Flash mobs will be in every community and raid the suburbs, taking, stealing, robbing, and assaulting all whom they see as the enemy. Banks will close, and assets will be frozen. Long lines for sustenance will develop, major medical needs will go unmet, from nursing homes to assistance for the millions of handicapped, and the rule of law will completely breakdown, necessitating the call for martial law. Money won’t buy goods because our currency will be in full fall. Trucks and trains will be impaired and services disrupted as strikes grow. The food supply will be disrupted. Americans don’t know how to grow their own food. Massive starvation will occur.
The riots we see in the streets of foreign countries today are mild compared to what America will experience because Americans have been told there is an enemy and that that enemy is anyone who has more than they. Others’ wealth is for the taking, we have been told, because wealth actually belongs to everyone, not just the lucky few. If the wealthy don’t give it, take it. Hail Obama! The big problem really arises, though, when Americans discover that they don’t have an America to rely on as do other countries do now; when our economy goes, it all goes. The risk of war, national and international, will grow exponentially.
Soccer moms will shudder. They will have won – and lost. It will be the best of times; it will be the worst of times.
In this almost certain scenario, Americans will refer to the Great Depression as the “good old days” because when the next depression hits we will discover that Americans today are not made of the same stuff as those who weathered the Depression of the 1930s. In those days temporary government programs to create jobs could be afforded. Americans expected to work, not receive government handouts. And as soon as those Americans could work, they did. Today, dependence on government is generational. Indeed, the calls for more spending at the start of the next Great Depression will be at a time when the very thing they call for is the very thing that got us into a Depression in the first place. The spiral is always down, not up.
The end of America as we know is at our door steps. It will not be a pretty scene. America will be finally transformed into the perfectly obedient, socialist state Obama and the Democratic Marxist/Socialists want. The question is, is that what we as Americans want because that is where this crowd is e taking us.
It can be stopped but, unlike the conventional wisdom, I suggest it will be easy. Here’s one way to make it happen. The Marxist/Socialists of the House and Senate as well as our current President will not like it, which is why they must be voted out of office.
1. The percentage of growth built into the yearly budget must be ended. Last I heard it was 8%. The government must start at level funding. Any increases must come through cuts in existing programs. Like most cash strapped businesses do, the government will have to prioritize and transfer funds to the neediest programs from existing budgets.
2. Eliminate all overspending of the budget for a savings of $1 trillion plus a year. Live within the yearly budget of $3 plus trillion. This is what families must do; this is what businesses do. This should be the way government functions. Live within the budget.
3. Every government function that can be performed or is already performed by a state must revert to the state with the federal government supplying support and national guidelines for each program. The government’s top priority must be its national defense, as the constitution says. That means major reductions in the bureaucracy of departments like education, environment and labor departments to name a few. Direct grants to the states for specific programs would come without a bureaucracy behind them, except for auditing of the expenditure of monies granted. And grants would have to be limited and specific.
4. Open up as much national land for rent as possible, and sell no more land to foreign governments or their shadow agencies. This means creating hundreds-of-thousands of new jobs in energy exploration and production for Americans.
5. Until a national sales tax is adopted, reinvigorate our steel, electronics, technology and manufacturing industries by eliminating taxes for all major industries that come back to or open in the United States. The tax benefit would offset the higher national labor costs of American labor. No more should the United States rely on China for our military or building needs. Nor should we rely on foreign governments for toasters and every other item we see in stores.
6. As above, to encourage businesses to grow in the United States, cut business taxes across the board to encourage hiring. This might offend the Obama Marxist/Socialist Democrats, but it would do wonders for those looking for jobs and for businesses. The natural trend for business is to want to grow and growth means, and has always meant, jobs for working people.
7. End Obama care. The estimated costs of this program are a fiction and the real costs of this program are at least three times higher than the GAO and others have estimated. When you get junk figures in you get junk figures out and the GAO and congress have been scamming the American public for years with junk estimates.
8. Require that only Americans receive medical, housing and other sustenance care provided for by Americans. This means no more food stamps to those in our country illegally; no more free health care, no more allowing babies of foreign parents to claim American citizenship because they were born to those parents in this country. For every illegal immigrant that costs Americans money, their government should be billed the full cost of that care. And we should hold those governments fully responsible for payment. If an American woman visits France and has a baby, is that baby a French citizen or an American?
9. End the EBT program and all programs that give free cell phones, free Internet access etc, as we know them, and require that every able bodied recipient of food stamps or a housing subsidy pick up their food stamps at a local office and provide some community service like sweeping streets or cleaning of public lots for their money or subsidy. It’s called work. As part of this process take a hard look at who collects SSDI. The free ride is either over or the worst case scenario described above is just around the corner. Work is a good four letter word. We should say and encourage it often.
1o. Stop the debt clock! Suspend all interest on debt payments for all foreign owned treasuries and sell no more Treasuries or other securities to foreign entities. Our national survival is on the table. If we’re going to be in debt, let’s issue the debt to ourselves (which we won’t have to under this plan) and forego interest payments altogether. Gradually, buy back all foreign debt and put a cap on withdrawals, equal to the cap we establish. Lift the debt freeze when the interest on the principle is what we can afford. We’re still the best place in the world to stash money. Look, we dealt a lousy hand to Chrysler secured debt bondholders. Why treat foreign government any differently. Under this plan, foreign debt holders will always have their money and a guarantee of renewed interest payments, but on a more manageable scale for us. Borrow no more from China.
11. Reform Medicare and Medicaid for all future recipients. Raise the retirement age to 70. Life expectancy for men in the 1940s was 61. It’s considerably higher today. It’s time government tables reflected this change. Also, begin a gradual transfer of responsibility for retirement from government to the private market. The Republicans have offered the best solutions in this regard.
13. End government driven lawsuits, as in the case of the EEOC threatening a lawsuit against a small business in Massachusetts because it hired shapely pretty young women to work at its coffee counter. Small businesses live under these threats from dozens of government agencies on a daily basis. We must get government regulations under control, not the other way around.
14. End the income tax entirely and revert to a national sales tax. The national sales tax is the only tax that taxpayers control. You spend a lot, you pay more in taxes. If the government ups the percentage of the tax, taxpayers will cut back in what they buy and the government will be forced to reduce the tax to increase revenue. It’s beautiful. No other tax works this way. Avoid the Democratic Marxist/Socialist sloganeering that this tax will hurt the poorest among us the most. This is pure rubbish. Presumably the poor spend less and, hence, will be taxed less. No exceptions. The rich will, indeed, pay more because they spend more. They always have and always will.
These are just a few suggestions which I am certain the Democratic Marxist /Ssocialist Party will oppose. But in opposing serious suggestions about getting our fiscal house in order, they are pushing harder on the accelerator moving our nation closer toward the Next Great Depression. Come November the choice will be entirely up to the American people. Speed up or slow down?