You and I are under an enormous threat and practically nothing is said or done about it. The U.S. government runs annual deficits of $1.4 trillion as it hemorrhages red ink. It costs over $200 billion a year just to pay the interest charges on that skyrocketing debt and that's at interest rates near zero.
What happens when interest rates rise beyond the near nothing they are now. Could the annual interest on the debt jump quickly to a half trillion dollars? To a trillion? Of course, if investors get nervous and demand premium rates for their money.
As they watch the President and Congress actually CUT TAXES, not expenses, they are growing nervous. Meanwhile, they see the amount of the debt itself is soaring.
As interest costs skyrocket, where will the money come from to pay for Medicare? Medicaid? Social Security? Education? Military? These will all be slashed severely while taxes will be raised sharply.
As Americans we can sit back and do nothing about our government's gross financial irresponsibility and watch everything we've worked for be jeopardized for if this is allowed to continue our dollar will eventually collapse in spiralling inflation. That is what happens when nations print money to pay their bills.
Or we can raise our voices, confront our problems now and solve them. Politicians consider this approach to be political suicide because it will involve some sacrifice. But it will ensure our nation's financial future and provide a far better tomorrow for you and me and our families and for our brethren throughout the world.
Dick
2 comments:
the Canadian dollar is on some days equal to the American dollar. Years ago the American dollar was worth much more than the Canadians.
If a home or business was run like the American govt. is they would be foreclosed on! Praying that the govt. brings back jobs to America, curbs spending and pays off their debt.
Dear Reader,
In response to Anonymous, today (12/20/10), the Canadian Dollar trades at over 98 cents vs. the U.S. dollar, which is nearly identical value.
That's shocking because for many years, the Canadian Dollar traded in the range of 65 - 75 cents. But in recnt years with the massive U.S. deficits, no more is that the case.
And in recent years the U.S. Dollar has lost value against several other major currencies as well.
I too hope the U.S. government gets its finances in order, but it is showing no sign of doing that. To the contrary, it just approved an extension of the tax cuts, unfunded, meaning to put it all on the credit card.
The U.S. government only brings in 61 cents for every dollar it spends. No business, no household can long operate like this unless it has a pile of money to burn. The U.S. government has no money pile, it is by far the biggest debtor nation in the world.
This is where you and I come in. It is crucial that we raise our voices for fiscal sanity before the U.S. does go bankrupt, or its more likely form, printing money it doesn't otherwise have and sinking into hyper-inflation. It's not too late and our voices matter.
Dick
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