Obama says adding $4 trillion to debt is unpatriotic.
Our National Debt as of 1/18/2010 = $12,258,545,028,915 ($12.25 trillion) up a quarter of a trillion dollars since it broke the 12 trillion dollar milestone on Noverber 16, 2009 - two months ago. Something is terribly wrong! It is a national shame our legislators lack the will to pay it. 36% (1999) of the annual budget is used to pay the interest for the National Debt. A reckless debt burden to inflict on the American Tax payer.
How Much Is One Trillion Dollars?
$1,000,000,000,000 (that’s 12 zeros).
At $42 million per year salery , LeBron James would need to work 23,809 years to earn a trillion.
Average life in the U.S. lasts 2.4 billion seconds.
One billion seconds ago = 1979.
One trillion seconds ago = 29,700 BC.
One trillion seconds from now = 33,720 AD.
It was my assumption before studying budgets and the National Debt that the US budget would not be balanced until the budget deficit as well as the National Debt had been eliminated. As it turns out “the budget” only refers to the current annual income and expenditures, and has nothing to do with the National Debt except as the accelerator of brake for the National Debt.
Everyone touts the good old days of Bill Clinton and his $400 + billion dollars budget surpluses of 1998,1999 and 2000, oddly enough, didn’t go towards reducing the National Debt except for a short term $30 billion, we can attribute to election posturing, that President Clinton threw at the National Debt in spring of 2000. This miniscule showtime reduction was eclipsed by August of the same year. The debt chart lower on the page shows the debt history in facial year 2000. It was nothing but election year showmanship.
The federal budget surplus for fiscal year 1998 was $69.2 billion, 1999 was $122.7 billion, and 2000 was $230 billion. After the back-to-back surpluses of 98 and 99, the first since 1957, the government claimed to pay down $138 billion in national debt. But the proof is absent according to the annual debt accumulation figures below.
If we accumulated $400 billion dollar budget surplus the balance of the National Debt should have been $5,525,793,008,897 at the end of fiscal 2000 instead of $5.674.178.209,886 a difference of 148,384,200,989 a net gain of the National Debt of $148,385,200,989 in a time of healthy budget surplus. This shell game of public proclamations and contradicted by the government’s own accounting must stop. Most folks don’t have the knowledge or inclination to research for the truth and have no idea when to call bull hockey.
By eliminating the National Debt, we could reduce the needed tax revenue by 36%. The 36% we are paying now buys us no infrastructure, socialism programs or anything else. It just pays for our failure to live within our means. Or to put it another way, our leaders failure at temptation to use your money for give away pork barrel programs during their campaign promises in their effort to influence elections in their favor. We all want our piece of pork, but our children are paying a terrible price for it.
Since the 2000 recession that was the result of the “Dot-Com Bubble” crash of 2000, the corporate scandals, a parade of devastating hurricanes, 911 and the war on Islamo fascism predictably and understandably we no longer have a budget surplus. Our National Debt has sky rocketed as a result. Periodically wars, recessions, and national disasters happen and they are never in the budget, it is incumbent upon us as citizens to hold our legislators feet to the fire to control spending in the after math of economic disasters that make us run up the National Debt. We send these people to Washington and we have the power to send them home.
My new understanding of the Value of Tax cuts
In 1999 I was against the tax cuts proposed because the economy was good and I wanted our surplus to go towards National Debt elimination. All the problems of the new millennium ushered in a new dynamic. At first I was skeptical of George Bush’s Tax cut scheme but the proof is in the pudding. Despite war, natural disaster, Medicare drug benefits, creation of the Department of Homeland Security and Transportation Security Administration, stock market fraud and the irrational exuberance that led to the popping of the Dot-Com bubble our economy. In 2000 the dot-com boom popped and tax revenue to the treasury dropped from $2,025.5 trillion to 1,991.4, George Bush’s baseline for 2001. Then 911 insulted tax revenue even more dropping to $1,782-trillion by 2003 the Bush passed his tax cuts and revenue climbed to $2,568 trillion by 2007, a $786 billion increase from the 2003 low because of the tax cuts.
In 2002 in the aftermath of 911 and the corporate scandals the Dow was down to 7,100 points and by the time the 2006 elections came around the Dow was over 13,000, and then the democrats took over congress. GWB has sold me on the merits of tax cuts; they inarguably can increase revenue to the National Treasury due to increased corporate profits and individuals choosing to sell assets at times of advantageous capitol gains tax rates that don’t discourage the selling of stocks, bonds and real property.
Financial meltdown of 2008
The financial meltdown of 2008 is fuel on the fire of our exponentially problematic National Debt. Every politician regardless of affiliation wants to throw treasury money at the problem but the treasury has to borrow the money to do it. When all is said and done the collective “WE” may have charged another two trillion dollars to our progeny’s debt obligation.
That said, the National Debt is a grim reaper that haunts our future and hopefully soon we well be able to address it effectively for the sake of our progeny. During the budget surpluses of the late 1990's many legislators were calling for tax cuts and my question to them at the time was: If today's surplus belongs to the taxpayers, why does yesterdays National Debt belong to our unborn children? I have since learned that tax cuts accelerate income into the national treasury but what good is that if some of the cash doesn’t stay there to reduce the National Debt.
The best thing to do with our budget surpluses of the future is to pay down our National Debt. After removing this elephant from our living room we will be healthier as a nation, and we will have a better ability to address our remaining financial problems, and budgetary needs.
Other Ways To help the National Debt
We need to free ourselves from foreign oil. If we put our farmers in the energy business creating ethanol it will help reduce the National Debt. If we develop a synfuel program to make good use of our prodigious coal reserves, it can help reduce the National Debt. By increasing wind, solar and hydro power we can reduce our National Debt, and if we just develop the national will to develop our nuclear power, and domestic oil and gas, the money that is spent in the United States for these items instead in a foreign country will make us prosper enabling reduction of the National Debt.
We need to get discretionary spending under control but that won’t do it alone, entitlement programs are a monkey on the back of the National Debt. These programs need to be streamlined and some need to be eliminated if we are ever to achieve sanity for our national bottom line. There are those who want to pile onto the problem with single payer health care and I fear that since that we already can’t fund the SSI and Medicare of the future, Single Payer may be the straw that breaks the camels back.
The annual budget of the United States never has National Debt reduction written into it and this should change
If a time ever comes when we aren’t paying 36% (1999) of our budget to service our National Debt the result will be unprecedented tax cuts that will usher in prosperity that that has seen no equal in our history.
I understand that Congress will spend anything they can get their hands on to purchase their next reelection, that is why it is incumbent upon us taxpayers to hold our representatives accountable for their actions. To shortchange our children by not legislating safeguards against misuse of surpluses we hope to have in future is unacceptable.
Many Deficit advocates like the late Jack Kemp favor a fatalistic approach to the stewardship of Americas money rationalizing that a large National Debt is OK, this is short sighted, selfish, lazy, cowardly, egocentrically expedient, and reckless. A perfect example for the argument for term limits which this Citizen For a Freer America today is against, but our legislators keep trying to sell me on the idea again and again.
As Jack Kemp advocated a national debt being OK that was maintained at a 36% of GDP. The folly of this is what happened to us after the financial crisis of September 2008, today this ratio is 84% because GDP is way down and the national debt continues to exponentially climb. So much for that theroy Jack!
Will Growing Government Debt Undermine the American Dream? The Implications of Mounting Federal Debt and Spending for the Debt-Paying Generation - A Heritage Institute Article
Washington’s reckless spending spree of the past several years and unwillingness to confront the mountains of debt coming soon from unreformed federal entitlement programs threaten the economic and social future of the generation currently between the ages of 5 and 30. The 115 million Americans in this Debt-Paying Generation could experience enormous adverse effects from having to pay down the greatest debt in world history. Indeed, the people in the Debt-Paying Generation could end their working lives as the least improved generation relative to the one that preceded them in U.S. history. They will marry later, have fewer children, poorer health, and lower incomes because they must pay the trillions of debt from excessive spending today and from the tsunami of debt coming from unfunded liabilities in Medicare, Social Security, and Medicaid.
Rob Bluey, a member of the Debt-Paying Generation, sat down with Bill Beach to ask him about the debt crisis and the implications for those who, through no fault of their own, will be on the hook for solving and paying for it. The interview follows.
Q: What kind of a fiscal mess are we in? How did we get here and what, specifically, has the Obama Administration done to exacerbate this problem? ---------------------> Rest of Article
The Debt To the Penny
09/2/2012 = 15,990,541,092,391.91
The day Obama took office the National Debt was 10,626,877,048,913.08, twenty one months later it is $13,561,623,030,891.79 and increase of $5,363,664,043,478
Historical debt of the past
Interest Expense on the Public Debt Outstanding
The monthly Interest Expense represents the interest expense
on the Public Debt Outstanding as of each month end. The interest
expense on the Public Debt includes interest for Treasury notes
and bonds; foreign and domestic series certificates of indebtedness,
notes and bonds; Savings Bonds; as well as Government Account
Series (GAS), State and Local Government series (SLGs), and
other special purpose securities. Amortized discount or premium
on bills, notes and bonds is also included in interest expense.
The fiscal year interest expense represents the total interest
expense on the Public Debt Outstanding for a given fiscal year.
This includes the months of October through September.
Interest Expense Paid every year on National Debt
Historical Data - FISCAL Year End2008 $451,154,049,950.63 the data for fiscal 2009 will not be available until october but it will be a nightmare when released.