As a nation, we are broke. Flat busted. Tapped out. The coffers are empty. We have no money. In May 2012, the national debt started growing faster than GDP, which means we are borrowing at a faster rate than we produce. Thus, for the United States, the day of reckoning has come.
At the end of World War II, the United States accounted for one half of the world’s Gross Domestic Product, we owned almost three quarters of the world’s gold, we were the world’s leading creditor at $3 billion, and we had a trade surplus of $5.8 billion.
However, now we are $17 trillion in the hole, no gold, and the trade surpluses are gone. America’s share of GDP has dropped to 25%, while the United States borrows 46 cents for every dollar it spends. “Debt service is crowding out normal economic functioning,” according to Paul Brodsky, co-founder and manager of QB Asset Management. “The economy is shrinking.”
Our debt crisis is borne out of two fundamental factors:
1) the United States is the only nation on Earth that can borrow in its own currency.
2) America’s central bank (the Federal Reserve) basically sets interest rates on its own debt. This distorts fiscal reality by giving Congress the perception that it can keep borrowing endlessly, and funding its own deficits with more borrowed money.
Before the Federal Reserve was established, Congress voted on every new bond issue. There were debates on the House floor, and borrowing was heavily scrutinized. Since the Fed was put in place, the Treasury Department took over the terms, timing, and amount of debt issuance, leaving Congress will say on the matter. I would think that this is against our Constitution!
It took 2 centuries for America to accumulate its first $1 trillion in debt. However, under Obama, we add another trillion in new debt approximately every 9 months. The United States government has more debt per capita than Greece, Portugal, Italy, and Spain combined. And remember, we only have less than 5% of the world’s population. The United States government has a staggering1/3 of worldwide government debt.
In a few years, when America has gone the way of the old Soviet Union, historians will note that the breakup of the United States started with the 2013 raising of the debt ceiling. More and more counties are seeking to secede (counties in Maryland, Colorado, etc.) In addition, states are seeking to secede – North Dakota.
By every accepted accounting principle, the United States of America is bankrupt.
It is time to do something about it now!
REMEMBER BENGHAZI & ALL THE SCANDALS & HOW THE GOVERNMENT TREATS OUR VETS!