The President and members of Congress have all stated that if the debt limit isn’t raised and if America defaults on it’s debt obligations, there will be terrible consequences to be paid that will include a crash of the dollar, world wide financial crisis, Americas loss as a world power, and the sky falling.
To get to the point here, America takes in $2.16 trillion a year in tax revenues, of that it costs $197 billion to service the debt, it’s payable. Whats not payable is the so called entitlement programs that were never affordable in the first place; they may have to go. So, it’s not a crisis of not being able to pay our debts, it’s a crisis of the entitlement programs that, if not corrected, will eventually bankrupt America. The only question here is, do you want bankruptcy now, or next year. Your going to get it one way or the other if Congress and the President doesn’t stop the lying, face the facts and stop the insane spending.
This just had to come sooner or later, the government just didn’t realize that the day of reckoning will ever come, but here it is. You can only spend more than you take in for so long before the “goo” hits the fan and everybody gets dirty.
To take a closer look at this (tax year 2010):
$2.16 Trillion- government income from taxes.
$197 Billion – interest on debt.
$793 Billion – cost of Medicare & Medicaid.
$701 Billion – payouts to Social Security.
$689 Billion – National defense.
$660 Billion – Discretionary ??
$416 Billion – Other Mandatory ??
$3.456 Trillion total.
So, $2.16 trillion income minus $3.456 Trillion expenses equals $1.296 Trillion that America spent that it doesn’t have, so this $1.296 Trillion had to be borrowed and so has been added to the national debt that now equals $14 Trillion dollars that is about equal to the Gross National Product. So, America now owes to creditors about what it is worth, so we are technically bankrupt, but yet the government still wants to borrow more money! Somebody here is nuts.
The main problem is that Congress has lost its mission to be a law making body and is now in the deal making business whereby they are buying votes using tax payer dollars to ensure their careers. They know that if they put so many people on welfare, they have their votes, or if they provide so much money to a particular industry, they have the votes of that industry. So, they must keep spending to ensure their careers, but they do not realize that if America goes bankrupt, all their precious entitlement programs come to an end as well as their careers.
To solve this problem, President Barrack Hussein Obama has said that he wants a “balanced approach”. If you translate this into English, it means that he wants to raise the debt limit an additional $2.5 Trillion to a total of about $16.5 Trillion, this is well past the net worth of the nation. This is certainly not in the best interest of the nation. Only a fool or a traitor will do this to America.
If anything, the debt ceiling should be lowered to about $7 Trillion because this would be a sustainable level of debt that will not hurt the economy.
This “balanced approach” of Barack Hussein Obama also includes tax increases. How can anybody propose tax increases in this economy where people are losing their homes to foreclosure and can not find a job because of the high unemployment rate? People are hurting right now and this will only hurt even more. It will in fact hurt the very people the government says it is trying to help with their entitlement programs.
But to take a closer look at these so called “entitlement” programs, it is a question as to whether there should be ANY entitlement programs at all. Since when is it acceptable that non-tax paying citizens are “entitled” to the earnings of other tax paying citizens. Now, don’t get me wrong here, America is a nation with a spirit of charity and so it is right and agreeable to most citizens that people in real need, like the elderly or disabled, should be helped. But, it has to be realized that there are limits as to how much the government can help those in need, especially if America continues borrowing to fund these so called entitlement programs. Current spending levels will destroy America financially, then the needy that the government is trying to help as well as all other citizens will be seriously hurt by this.
The current offer being talked about is a so called “Grand Bargain” that calls for $4 trillion in deficit reductions over ten years. This is ridiculous because Obama will only be in office another year and a half, the next President will surely make his (or her) own budget. So this 4 trillion spending cut over ten years will not happen, it’s only a trick, and a sick one at that. Add to this “Grand Bargain” is a call for a trillion dollar tax increase and this sick trick gets even sicker for reasons I already went into involving the “Balanced Approach”.
Increasing the debt limit and/or raising taxes will do nothing to solve the current financial mess, it will in fact make it worse. The only way out of it is to cut spending and pass a new amendment to the Constitution that prohibits any spending that exceeds the amount that is received in taxes and other income sources received by government, except in time of War or national emergency; and any money raised for War or other emergency can only be used for that emergency or War. Term limits for those carrier politicians will definitely be a plus factor for the nation, this will reduce vote buying with tax payer money that will only keep useless politicians in office.
Jose A. Lugo