Posted by
Jay Noble on Wednesday, February 17, 2010 5:22:38 PM
Last Friday President Obama signed into law an increase in the authorized United States public debt. The maximum amount is now $ 14.3 trillion dollars ($ 14,300,000,000,000.00). Let's put that into some perspective. Mr. Tiger Woods, when he was playing golf and his cart was full of endorsements, was said to have grossed approximately $100,000,000.00 in annual income. Should Tiger return and reclaim the same annual earnings, it would only take h im 143,000 years to cover the debt allowance. Tiger better get back soon!
When I was born in 1957 the entire annual Federal budget was less than 100 billion dollars; the total Federal debt was less than 500 billion dollars. Now Obama has submitted a budget for the fiscal year 2011 in the amount of 3.8 trillion dollars and the public debt approaches the 14.3 trillion ceiling. Has this titanic increase in the budget and debt purchased us a better Federal government?
No country's economy can survive spending and debt on this scale. If the United States was an individual, its creditors would already have forced it into bankruptcy. Either we will go bankrupt and default on the debt or we will incur rampant inflation to so devalue the currency that it becomes worthless. The irresponsibility of the Baby Boom generation which has presided over this epic disaster will work its pain on their heirs, who will live in a far, far less affluent and influential nation.
I suppose there is a way to avoid calamity but unfortunately the necessary measures required at this stage cannot command majority support in the nation. Hence we are fated to experience the humiliation now being vested on Greece. Our creditors will dictate financial terms of surrender.