Announcement

Collapse
No announcement yet.

U.S. Federal Debt Nearly $12 Trillion

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • U.S. Federal Debt Nearly $12 Trillion

    As U.S. Federal Debt Breaks $12 Trillion, Group Launches Drive for Balanced Budget Amendment

    WASHINGTON, Nov. 10 /PRNewswire-USNewswire/ -- With the United States Federal debt rising above $12 trillion this week, and the U.S. Treasury auctioning off a record-setting $81 billion in debt this week alone, a nationwide grassroots group has launched its efforts for the enactment of a Balanced Budget Constitutional Amendment, (BBA). The new non-partisan organization, Deficit Free, (www.DeficitFree.com ) is calling for Congress to refer to the states a Balanced Budget Amendment by July 4, 2013 and to balance the Federal budget by July 4, 2016 - the approximate time when Social Security falls into permanent deficit.

    Tim Mooney, National Coordinator of Deficit Free said, "The national debt ($12 trillion) and the annual deficit ($1 trillion) has our economy on the brink of financial collapse. When Social Security moves from surplus to permanent deficit (2016), if our budget is not balanced, we are finished. We are calling for a balanced budget by July 4, 2013, and a balanced budget by July 4, 2016. This would be the best two birthday presents we could give to our country, and ourselves."

    As evidence of impending financial threats caused by the Federal debt and deficit, Deficit Free points to the falling U.S. dollar, record-high gold prices, along with India's growing exchange of their foreign currency reserves into gold reserves, and China's recent discussions about limiting its purchasing of U.S. treasuries, fearing the U.S.'s inability to pay its debt.

    Deficit Free has set out a six-point plan to get to a balanced budget amendment by July 4, 2013, available at www.DeficitFree.com. The first step calls for the creation of a "Balanced Budget Congressional Member Caucus."

    Mooney commented, "Our national leaders can no longer afford to expend time on Caucuses (more than 200) like the Bourbon Caucus, and the Ski & Snowboard Caucus, when there is no Balanced Budget Caucus. We are calling on our nation's leaders to start a 'Balanced Budget Caucus' to drive members of Congress to the reality that we must balance the books or face both economic ruin and a reversal of our liberties at the hands of foreign debt holders."

    The fast-rising foreign holding of U.S. Treasury debt is of particular concern. In just the last 12 months, foreign held debt has increased by 28.8%, with U.S. debt to China increasing nearly 40% in just the last year.

    FOREIGN DEBT As of As of $/1-Year %/1-Year
    8/09 8/08 Increase Increase
    China $797.1 $573.7 $223.4 +38.9%
    Japan $731.0 $630.3 $100.7 +15.9%
    United Kingdom $225.8 $82.5 $143.3 +173.6%
    Oil Exporters $189.2 $169.6 $19.6 +11.5%
    Caribbean Banking $180.2 $132.9 $47.3 +35.5%
    Total Foreign Debt $3,448.8 $2,688.4 $760.4 +28.2%
    "Our economy and our national security are at risk; our freedom is at risk. China, Oil Exporting Countries, Caribbean Banking Centers (thought to be holding billions in narco-terrorists deposits), could at any moment decide to hold the U.S. financially hostage with the threat to crash the dollar overnight. Increasingly, we OWE them...they OWN us," continued Mooney

    DeficitFree.com is kicking off a grassroots movement to sign up voters in support of a Balanced Budget Amendment with the goal of reaching 5 million Americans, with a minimum of 5,000 in each Congressional district. It believes balancing the budget needs to be the defining issue in next year's Congressional mid-term elections and in the next presidential campaign, with the realistic goal of passing the Balanced Budget Amendment within the first six months of the next presidential term.

    In 1996, the U.S. House passed the BBA. In 1997, the U.S. Senate came within one vote of passage. Congress subsequently passed balanced budgets for four straight years. When voter pressure for the BBA waned in 2001, Congress began to spend wildly again. Last year, Germany passed a Balanced Budget Amendment. It's an example to follow.

    Mooney concluded, "While American families struggle to meet their monthly obligations, this Congress' 'plan' is to borrow $1 trillion or more every year for the next nine years to pay their bills. Besides the obvious problems with piling that kind of debt on our children and their children, foreigners won't loan the U.S. that amount of money much longer. Congress will not balance the budget until either:

    1.Voters rise up from throughout America before there is a cataclysmic economic collapse, or
    2.International organizations and foreign debt-holders demand balanced budgets after the U.S. has suffered a cataclysmic economic collapse.

    With $3 billion to $4 billion being borrowed everyday, most from overseas (mostly from China), the choice is ours today, but it will be the choice of our foreign debt holders and international organizations tomorrow."
    This is the biggest problem we face right now but its getting hardly any media coverage. How much longer can the US keep going at this rate? The article has a partial list of major foreign holders of US treasury securities as of August 09, the full list can be viewed Here. The Cato Institute has an outstanding new website called downsizinggovernment.org that has some useful information. Especially this Graph wich shows how Health and Human Services, Social Security, and Defense dwarf all other departments in spending. Something has to be done but no one has the political will to go against the entitlement programs, defense and war spending.
    |TG-X| mp40x



    Register for the Forums! | Get on Teamspeak! | Play Squad! | Join Discord! | Support Tactical Gamer!


  • #2
    Re: U.S. Federal Debt Nearly $12 Trillion

    It's unfortunate that many people don't understand the gravity of the situation we're in and how this will impact their everyday lives. Our two major political parties, the Fed, and the insatiable culture of excess consumption have sold out our future and led us into ruin. The party is over America, time for the hangover.
    Like the server? Become a regular! TGNS Required Reading
    Answers to every server question? Yes! TGNS FAQ

    Comment


    • #3
      Re: U.S. Federal Debt Nearly $12 Trillion

      The total amount of debt is not as important as the ability to service such debt, and that has been made easier now due to lower interest rates. A huge amount of debt has been issued recently with rates far lower than in the past.

      I'm not saying that the total debt is not worrisome, but if people (or countries) are willing to lend to the government at such low rates, it may actually be a good thing to take the loan with the assumption that the government's ability to pay the loan back will be improved in the future (due to taking out the loan).

      Businesses do this all the time.

      3) Support game play in a near-simulation environment. Where the focus of play would not be solely on doing what it takes to win, but doing so utilizing real-world combat strategy and tactics rather than leveraging exploits provided to players by the design of the game engine.

      Comment


      • #4
        Re: U.S. Federal Debt Nearly $12 Trillion

        The debt isn't the problem so much as the forces contributing to it. This is actually getting media coverage in an indirect way with all the noise created about the ~$1 trillion health care bill just passed in the House (though the media seems to ignore the fact that the bill will reduce deficits in the not-so-long term.)

        Of course all of these numbers pale in comparison to the collossal amount that the US government spends on defense. Between 'normal' funding and war funding, we've already racked up over $1 trillion in 2009 alone. 'Fiscal conservatives' had no trouble backing the $636 billion defense spending bill this summer. Can you say military industrial complex?

        We have much bigger problems than debt, and even our ability to manage the debt - it's not a government out of control, it's a nation out of control.

        Comment


        • #5
          Re: U.S. Federal Debt Nearly $12 Trillion

          Originally posted by AMosely View Post
          Of course all of these numbers pale in comparison to the collossal amount that the US government spends on defense. Between 'normal' funding and war funding, we've already racked up over $1 trillion in 2009 alone. 'Fiscal conservatives' had no trouble backing the $636 billion defense spending bill this summer. Can you say military industrial complex?
          You could, but why would you want to? As huge as the numbers are for our colossal defense budget, THEY still manage to pale in comparison to the amounts we're spending on economic stimulus and health care reform. That $636 Billion spending bill? That's not extra emergency stuff, that IS the normal funding. The military has to have its normal funding renewed EVERY year because its unconstitutional to have multi-year defense spending appropriations. And you could abolish the military tomorrow -- just wipe the whole thing out entirely -- and we would STILL have the largest deficit in the history of the country. Can you say scapegoat?

          Comment


          • #6
            Re: U.S. Federal Debt Nearly $12 Trillion

            Originally posted by Kerostasis View Post
            You could, but why would you want to? As huge as the numbers are for our colossal defense budget, THEY still manage to pale in comparison to the amounts we're spending on economic stimulus and health care reform. That $636 Billion spending bill? That's not extra emergency stuff, that IS the normal funding. The military has to have its normal funding renewed EVERY year because its unconstitutional to have multi-year defense spending appropriations. And you could abolish the military tomorrow -- just wipe the whole thing out entirely -- and we would STILL have the largest deficit in the history of the country. Can you say scapegoat?
            Military spending a scapegoat?

            Nah. If anything I don't understand why it is so off the radar of fiscal conservatives. I guess most just have this assumption (caused by their fear of absolutely everything) that it is desperately needed or they simply like military spending. But is it? How much of it is just a socialist program by a different name?

            This year (and the next couple) are probably going to be a bit of a anomaly with regards to deficits caused by the failure of capitalism to control itself and the government having to rescue us from the greedy rich.

            What would the deficit be if we could wipe out military spending and the spending caused by the rich wall street types screwing the system with greed?
            Iím not racists, I have republican friends. Radio show host.
            - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
            - "A foolish consistency is the hobgoblin of little minds" - Emerson
            - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
            - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
            - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
            - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

            Comment


            • #7
              Re: U.S. Federal Debt Nearly $12 Trillion

              Don't worry, we'll just let either the value of the dollar slip a little, or jack up inflation a little bit (or both) and basically stiff our two biggest creditors just like we did to Japan in the late 80's/early 90's. It's the price those countries have to pay for not allowing their currency to float and keeping tight controls on it so they continue to make huge profits on their sales here.

              They don't really play "fair" so neither will we.

              Comment


              • #8
                Re: U.S. Federal Debt Nearly $12 Trillion

                Originally posted by Tempus View Post
                The total amount of debt is not as important as the ability to service such debt, and that has been made easier now due to lower interest rates. A huge amount of debt has been issued recently with rates far lower than in the past.

                I'm not saying that the total debt is not worrisome, but if people (or countries) are willing to lend to the government at such low rates, it may actually be a good thing to take the loan with the assumption that the government's ability to pay the loan back will be improved in the future (due to taking out the loan).

                Businesses do this all the time.
                I just can't subscribe to this theory. There is no argument that can justify a Federal debt of $12 Trillion. Don't take my word for it though, read the Congresional Budget Office long term budget outlook Here. Below are some older videos of former Comptroller General David Walker of the US Government Accountability Office who was kind of like John the Baptist screaming in the wilderness. He was forced to resign in my opinion because he was such a loud and outspoken critic of goverment spending. Government Accountability Chief Resigns. Truth is we need more guys like Walker, alot more. I'm willing to look past the fact that Walker is a member of the Trilateral Commision, simply because of his insistent protest to wasteful goverment spending.
                [media]http://www.youtube.com/watch?v=D6Q14HOBThM[/media]
                [media]http://www.youtube.com/watch?v=KjZBOCAgR64[/media]
                |TG-X| mp40x



                Register for the Forums! | Get on Teamspeak! | Play Squad! | Join Discord! | Support Tactical Gamer!

                Comment


                • #9
                  Re: U.S. Federal Debt Nearly $12 Trillion

                  Originally posted by El_Gringo_Grande View Post
                  Military spending a scapegoat?

                  Nah. If anything I don't understand why it is so off the radar of fiscal conservatives. I guess most just have this assumption (caused by their fear of absolutely everything) that it is desperately needed or they simply like military spending. But is it? How much of it is just a socialist program by a different name?
                  Very little. The military is very much an area where you get what you pay for. We spend ~$700 Billion per year to acheive a certain military capability, and while there is always room for small increases in efficiency, the only way to significantly reduce that cost is to correpondingly reduce our military capability.

                  Now, granted, there's a significant minority that thinks that would be an acceptable tradeoff, that we don't really NEED this much military capability. But it IS going to be a tradeoff -- you don't get the most powerful military force in the world without paying for it.

                  Comment


                  • #10
                    Re: U.S. Federal Debt Nearly $12 Trillion

                    Originally posted by Kerostasis View Post
                    Very little. The military is very much an area where you get what you pay for. We spend ~$700 Billion per year to acheive a certain military capability, and while there is always room for small increases in efficiency, the only way to significantly reduce that cost is to correpondingly reduce our military capability.

                    Now, granted, there's a significant minority that thinks that would be an acceptable tradeoff, that we don't really NEED this much military capability. But it IS going to be a tradeoff -- you don't get the most powerful military force in the world without paying for it.
                    The question is what the strongest military in the world actually gets you. Not that outspending every other country (and actually outspending many developed countries combined) won't get you the most powerful military in the world.
                    Iím not racists, I have republican friends. Radio show host.
                    - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
                    - "A foolish consistency is the hobgoblin of little minds" - Emerson
                    - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
                    - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
                    - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
                    - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

                    Comment


                    • #11
                      Re: U.S. Federal Debt Nearly $12 Trillion

                      Originally posted by El_Gringo_Grande View Post
                      The question is what the strongest military in the world actually gets you.
                      Yes indeed, that is the big question. Of course, once you phrase it that way you can't accuse it of being "a socialist program by a different name" anymore.

                      At the moment, the strongest military in the world is getting us the ability to ALMOST win a war in Afghanistan, while doing a half-way decent job of stabilizing a new government in Iraq. Is that worth anything?

                      Meanwhile we're watching China over at Taiwan, and watching North Korea over at the border with South Korea. Neither Taiwan nor South Korea would probably exist as free countries today if we didn't have the most powerful military in the world.

                      Comment


                      • #12
                        Re: U.S. Federal Debt Nearly $12 Trillion

                        Originally posted by El_Gringo_Grande View Post
                        The question is what the strongest military in the world actually gets you. Not that outspending every other country (and actually outspending many developed countries combined) won't get you the most powerful military in the world.
                        Exactly. We really need to look at why we are building $81 billion submarines to fight sandal-wearing terrorists and insurgencies. I would argue that we don't need subs to protect ourselves from Iran either, but I can see a counter argument in that.

                        $700 billion isn't a 'normal' ongoing cost for maintaining the military - it's an evolutionary run-up in defense spending that occured during the Bush administration, the largest that America has seen since WWII. And it is a spending pattern that Obama shows little signs of turning away from - if anything, he seems to only be adding to it. It's piling heaps of money on top of what was already the largest military spending bubble on Earth.

                        The one-time $1.2 trillion stimulus at its best got us some jobs, fixed some highways, funneled money to starving state governments. At worse, it buoyed a bunch of filthy-rich banks and their operators.

                        What did our ~$23 trillion in defense spending (and to relate to this thread, associated debt) so far this century get us? A Saddam-free Iraq? Hardly a Taliban-free Afghanistan. What else? Don't say airport security, because that's all under the department of homeland security budget (not that we got any meaningful security there anyway). Think Haliburton and the organization formerly known as Blackwater - the Goldman Sachs and Citigroups of our military-industrial economy.

                        So, in conclusion, I don't want to hear whining about 'runaway' government spending on health care without an accompanying roar about 'runaway' government spending on the more corrupt, more wasteful and arguably useless military-industrial spending problem.

                        Comment


                        • #13
                          Re: U.S. Federal Debt Nearly $12 Trillion

                          Hold on, where do you get that 23 Trillion on defense figure? The total federal budget for EVERYTHING this century has only been about 24 Trillion. Unless your referring to the 20th century, instead of the 21st?

                          Comment


                          • #14
                            Re: U.S. Federal Debt Nearly $12 Trillion

                            The submarines really get me. The major military threat we have with conventional arms is the Chines. They use conventional diesel/battery technology. That is great stuff for defending the shores (probably even better than nuclear). But it is crap for long range attack capability.

                            I am a huge sea power guy. I think most our defense spending should be on sea power. But all that money for a new generation of attack subs? Crazy. Maybe one or two to perfect the technology but any more than that is just a glorified jobs program that makes a handful of people rich at tax payers expense.

                            Why aren't all these fiscal conservatives railing about that and all the other silly military spending? Because most are not really fiscally conservative. They are really socialists with an agenda. (Ok, not really socialists but I figure if they can throw that word around so freely so can I.)
                            Iím not racists, I have republican friends. Radio show host.
                            - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
                            - "A foolish consistency is the hobgoblin of little minds" - Emerson
                            - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
                            - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
                            - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
                            - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

                            Comment


                            • #15
                              Re: U.S. Federal Debt Nearly $12 Trillion

                              OMG!!!

                              I have figured out what is really going on. The government is spending all this money to build space craft to save as many people when the world ends in 2012.

                              No wonder they aren't worried about the debt getting so big. It just isn't going to matter in about 4 years.
                              Iím not racists, I have republican friends. Radio show host.
                              - "The essence of tyranny is the denial of complexity". -Jacob Burkhardt
                              - "A foolish consistency is the hobgoblin of little minds" - Emerson
                              - "People should not be afraid of it's government, government should be afraid of it's People." - Line from V for Vendetta
                              - If software were as unreliable as economic theory, there wouldn't be a plane made of anything other than paper that could get off the ground. Jim Fawcette
                              - "Let me now state what seems to me the decisive objection to any conservatism which deserves to be called such. It is that by its very nature it cannot offer an alternative to the direction in which we are moving." -Friedrich Hayek
                              - "Don't waist your time on me your already the voice inside my head." Blink 182 to my wife

                              Comment

                              Connect

                              Collapse

                              TeamSpeak 3 Server

                              Collapse

                              Advertisement

                              Collapse

                              Twitter Feed

                              Collapse

                              Working...
                              X