Date: 12 Sep 2008 Comments: 2 so far
Like an unbridled group of undisciplined, immature irresponsible kids with an unlimited credit card balance. Our government has managed to charge up 9 trillion dollars in debt. It appears they have no intention of rectifying the federal budget deficits that grow year after year, or paying down the astronomical national debt. The attitude has been to make the minimum payments for all intensive purposes; I think we know where that gets you. This attitude and maintaining the status quo will ultimately challenge our national security, standing in the world, and leave us virtually bankrupt and credit unworthy with other nations.
The following is condensed information that was found on Perot Charts.com. I have attempted to summarize the information to the best of my ability and make things as straightforward as possible.
Our countries future is at stake, the consequences of continuously electing leaders that either do not or will not address this critical situation must be dealt with soon, and held accountable. Maybe it’s because of political expediency and unwillingness but it cannot be tolerated very much longer.
Let’s get to it.
Now I am writing this in September of 2008 but I am using data and information gathered from the previously cited website. Just for reference, the information provided in total is from the Congressional Budget Office or CBO for short. This is the government agency the keeps track of the spending the federal government does.
Based on the figures for the fiscal year 2007 the federal budget for the United States of America was $2.7 trillion. Every single year the federal government spends more than the year before. How the money is spent may surprise most people.
Spending did not exceed more than 100 billion until the year 1962 and 1987 it was at $1 trillion. In 2002 15 years later it was at $2 trillion. By the year 2009, it will exceed $3 trillion.
Understanding The Language Of the Federal Budget
In Washington DC lawmakers call monies, revenues. To everyone else it’s known as taxes, and in 2007 the federal government collected $2.5 trillion in taxes. This ultimately was a shortfall of $162 billion of what it actually spent.
When the government collects more in tax revenue then it spends it’s known as a surplus. When its spends more than it takes in it’s known as a deficit.
In the past 40 years, there were five surpluses. 1969, 1998 through 2001. The total deficits over the last 50 years or so comprise. of the national debt. It’s important to note they even though there were five separate years of surpluses it did not truly reduce the level of the national debt. The reason will be explained shortly.
Where Does the Federal Government Get the Money When It Runs a Deficit?
Over the years the federal government has borrowed money from many sources. Places like domestic buyers of bonds, mutual funds, state and local governments, Federal reserve, commercial banks, insurance companies, private and foreign entities, and central banks of foreign countries. This simple pattern alone is disturbing for the simple fact that the United States used to be the greatest creditor nation and now is the biggest debtor nation on the planet.
Of the $5.1 trillion in outstanding debt domestic investors, hold 55% or $2.8 trillion, foreign investors hold the remaining 45% or $2.2 trillion. Obviously almost half has been borrow from other places outside the borders of the United States. We’re slowly giving away our country to the rest of the world without even a fight.
When the government has a surplus, the national debt should be paid down. Right?
Unfortunately, most debt clocks show more than $9 trillion and growing daily. If our debt for the entire
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