Bonnie Alba
Goliath debt strangling U.S. future
By Bonnie Alba
We keep hearing that the U.S. economy is healthy, wealthy, plenty of jobs, and our standard of living will only improve — we are the land of opportunity, aren't we? U.S. Comptroller General David M. Walker disagrees with this completely positive assessment of the U.S. Government's state of the union. He has been busy promoting education on the present and future fiscal stability or instability of our nation's government.
We all know our federal government is in a constant state of out-of-control deficit spending. Looking at the bottom-line numbers, we realize that trouble looms in the foreseeable future.
First, some important numbers from our U.S. Comptroller of integrity:
National Debt: $8.7-plus trillion (estimated to exceed $9 trillion at the end of fiscal 2007). This is a number that only increases as our federal government spends more than it budgets for or receives in revenues.
Social Security and Medicare: $38.8-plus trillion, current year (future) estimate. (To grasp some extent of the total debt of our nation, we have to factor in the unfunded contingent liabilities of Social Security and Medicare future expenditures.)
Total: $50.5-plus trillion
Household, business and financial sectors: $30-plus trillion.
Total combined U.S. Debt: $80-plus trillion. (Some of the debt is held by foreign investors, which means countries like China, Japan and others who hold bonds or other U.S. investments.)
Recently both liberal and conservative media splashed the supposed contrary views expressed about the economy and government between Federal Reserve Chairman Bernanke and former Chairman Greenspan. Not Quite.
In testimony before Congress, in a bland kind of way, Bernanke warned Congress that "A particularly worrisome aspect...is the implied evolution of the national debt." That's the understatement of the century.
He also stated "...the federal government debt held by the public increases each year by the amount of that year's unified deficit ( includes Social Security — Medicare). Consequently, scenarios that project large deficits also project rapid growth in the outstanding government debt."
Bernanke's conclusive message: "However, if early and meaningful action is not taken, the U.S. economy could be seriously weakened, with future generations bearing much of the cost. That decisions the Congress will face will not be easy or simple, but the benefits of placing the budget on a path that is both sustainable and meets the nation's long-run needs would be substantial."
I don't think Bernanke was blunt enough to reach the power-driven, status-quo brains of Congress. What he should have said is reduce the budget and "Cut the SPENDING!"
Not only government but citizens are in a state of denial about their own personal debt burdens. Show me a double-car garage with no vehicles in the driveway and I'll show you a family who lives on a balanced budget with little debt load.
None of us wants to believe we are that far down the slope of such foolishness. Some want to blame Congress, past and present presidents, the IRS, or anyone who doesn't agree with them. But let's look at the present state of consumerism. Citizens have evidently believed the hype on being good consumers regardless of our needs. Just buy and charge or borrow.
What's the consumer spending record? Comptroller Walker stated "last year (2006) was the first year since 1933 that Americans spent more money than they took home and, as you probably recall, 1933 was not a good year for the United States."
About the only thing many Americans know about the Great Depression era is everyone was poor. It was the decade that Pres. F. D. Roosevelt established the Ponzi Scam better known as Social Security.
The American way has changed, maybe evolved is a better word, metamorphosed into a huge mutation. It's called Debt. Not just a little, but of gigantic proportions. So much so, not one person in the world is able to grasp the enormity of such an amount. So it goes with our instantaneous 21st century society.
Comptroller Walker is the only government representative who is making a splash on the nation talking about the "...future of our country, our kid and grandkids...We the people have to rise up to make sure things get changed."
Whoa! If we can't even get a handle on our own personal debt, how may we move towards eradicating the Goliath mutation of the federal government debt?
Remind your congressmen and senators that they need to confront the Big Problems of staying within budget, changing Social Security, Medicare programs and creating a new tax system. Give your congressmen and senators the message: Confront the problems now — not later!
© Bonnie Alba
We keep hearing that the U.S. economy is healthy, wealthy, plenty of jobs, and our standard of living will only improve — we are the land of opportunity, aren't we? U.S. Comptroller General David M. Walker disagrees with this completely positive assessment of the U.S. Government's state of the union. He has been busy promoting education on the present and future fiscal stability or instability of our nation's government.
We all know our federal government is in a constant state of out-of-control deficit spending. Looking at the bottom-line numbers, we realize that trouble looms in the foreseeable future.
First, some important numbers from our U.S. Comptroller of integrity:
National Debt: $8.7-plus trillion (estimated to exceed $9 trillion at the end of fiscal 2007). This is a number that only increases as our federal government spends more than it budgets for or receives in revenues.
Social Security and Medicare: $38.8-plus trillion, current year (future) estimate. (To grasp some extent of the total debt of our nation, we have to factor in the unfunded contingent liabilities of Social Security and Medicare future expenditures.)
Total: $50.5-plus trillion
Household, business and financial sectors: $30-plus trillion.
Total combined U.S. Debt: $80-plus trillion. (Some of the debt is held by foreign investors, which means countries like China, Japan and others who hold bonds or other U.S. investments.)
Recently both liberal and conservative media splashed the supposed contrary views expressed about the economy and government between Federal Reserve Chairman Bernanke and former Chairman Greenspan. Not Quite.
In testimony before Congress, in a bland kind of way, Bernanke warned Congress that "A particularly worrisome aspect...is the implied evolution of the national debt." That's the understatement of the century.
He also stated "...the federal government debt held by the public increases each year by the amount of that year's unified deficit ( includes Social Security — Medicare). Consequently, scenarios that project large deficits also project rapid growth in the outstanding government debt."
Bernanke's conclusive message: "However, if early and meaningful action is not taken, the U.S. economy could be seriously weakened, with future generations bearing much of the cost. That decisions the Congress will face will not be easy or simple, but the benefits of placing the budget on a path that is both sustainable and meets the nation's long-run needs would be substantial."
I don't think Bernanke was blunt enough to reach the power-driven, status-quo brains of Congress. What he should have said is reduce the budget and "Cut the SPENDING!"
Not only government but citizens are in a state of denial about their own personal debt burdens. Show me a double-car garage with no vehicles in the driveway and I'll show you a family who lives on a balanced budget with little debt load.
None of us wants to believe we are that far down the slope of such foolishness. Some want to blame Congress, past and present presidents, the IRS, or anyone who doesn't agree with them. But let's look at the present state of consumerism. Citizens have evidently believed the hype on being good consumers regardless of our needs. Just buy and charge or borrow.
What's the consumer spending record? Comptroller Walker stated "last year (2006) was the first year since 1933 that Americans spent more money than they took home and, as you probably recall, 1933 was not a good year for the United States."
About the only thing many Americans know about the Great Depression era is everyone was poor. It was the decade that Pres. F. D. Roosevelt established the Ponzi Scam better known as Social Security.
The American way has changed, maybe evolved is a better word, metamorphosed into a huge mutation. It's called Debt. Not just a little, but of gigantic proportions. So much so, not one person in the world is able to grasp the enormity of such an amount. So it goes with our instantaneous 21st century society.
Comptroller Walker is the only government representative who is making a splash on the nation talking about the "...future of our country, our kid and grandkids...We the people have to rise up to make sure things get changed."
Whoa! If we can't even get a handle on our own personal debt, how may we move towards eradicating the Goliath mutation of the federal government debt?
Remind your congressmen and senators that they need to confront the Big Problems of staying within budget, changing Social Security, Medicare programs and creating a new tax system. Give your congressmen and senators the message: Confront the problems now — not later!
© Bonnie Alba
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