Blogs For Victory

Outside of military/terrorist threats to American lives, there is no more important issue for us to deal with:

…”at all levels, federal, state, local and GSEs, the total public debt is now at 141% of GDP. That puts the United States in some elite company–only Japan, Lebanon and Zimbabwe are higher. That’s only the start. Add household debt (highest in the world at 99% of GDP) and corporate debt (highest in the world at 317% of GDP, not even counting off-balance-sheet swaps and derivatives) and our total debt is 557% of GDP. Less than three years ago our total indebtedness crossed 500% of GDP for the first time.”

Add the unfunded portion of entitlement programs and we’re at 840% of GDP.

The world has not seen such debt levels in modern history. This debt is not serviceable. Imagine that total debt is 557% of GDP, without considering entitlements. The interest on the debt will consume all the tax revenues of the country in the not-too-distant future. Then there will be no way out but to create more debt in order to finance the old debt.

It assures a period of economic devastation. In a last, desperate attempt, politicians at the federal and local levels will raise taxes to astronomical heights to raise revenues. And that only assures destruction of the economy. Forget the fable of economic recovery. Unless there is a change in Washington by next year’s election, there will be no way to turn back.

No way to turn back? Well, think of it like this – Japan had its September, 2008 19 years ago and they are still mired in the crushing debt and resulting recession which started waaay back then. Think we can’t go through generations of economic malaise? If you think its impossible – if you think some magical “business cycle” will turn things around – then you are living in a fool’s paradise.

We must balance the budget. Now. Not next year. Not ten years from now; we need to do it right away. Yes, I know it will be hard – as a people we will have to hunker down and help each other but government must start to spend less than it takes in and it must do this without raising taxes to a ruinous height.

Of course, we won’t do it, now. With Obama and the liberals in charge, it is “full speed ahead” with more debt – and anyone who thinks that ObamaCare will actually lower government spending is a knave or fool. But we can’t go on much longer – we’re overburdened (so is most of the rest of the First World) and we have to shake ourselves free from the liberal/socialist illusions of the past century.