The items found on this blog were written during the past few years and strictly reflect my own opinions. Because these articles deal with difficult issues they are bound to be controversial. They reflect my personal analysis based on the limited information that I have. I am certainly no expert and fully respect different opinions. Difficult issues would not be difficult if there were clear-cut answers. Although you will see in reading some of my material, I don't like being pigeonholed with a label, I will admit to being politically independent with a tendency to be more conservative fiscally and slightly more liberal with regard to social issues. Having lived through the 1940's, I have a great appreciation for the sacrifices made by our armed forces and, in fact, all Americans during World War II. The greatness of this country shone bright as we rehabilitated and rebuilt our enemies after winning that war. I am very patriotic and proud of our country. While we are far from perfect, we're not as far from that ideal as most other countries in the world.
Monday, August 1, 2016
Just a brief reflection on the upcoming election and it’s potential consequences. In my opinion, there are three key areas where the Obama administration has failed, one of which is a ticking time bomb threatening to seriously damage if not totally take our economy and nation down. That is our exploding national debt which has increased from $10.6 trillion when he took office on January 20, 2009 and will have nearly doubled to $20+ trillion by the time he leaves office next January. In order to convert this from the “eyes glazed over” figure of $20 trillion to something understandable by at least a small fraction of the population, that amounts to about a quarter of a million dollars for every family of four in the country. Interest on that debt has to be paid every year and an interest rate of 3% that amounts to $7,500 for our model family. That amount either comes from the income tax we all pay or it comes from further government borrowing and further increase in debt. Under the stewardship of our current politicians, the later has been the case. Sooner or later, our creditors will realize the risk is too great and will stop lending us more so we will be forced to pay the interest and consequently cut government spending, possibly in critical defense and entitlement areas. Interest rates at the very low level of 3% may also be raised by our creditors. 10% is not at all too high based on history and that would mean at today’s level of debt, each family of four would own $25,000 per year eating up virtually all income tax revenues. Our country would essentially be bankrupt and we would all suffer extreme financial loss. Homes and jobs would be lost and the U.S. would decline to the depths of the world’s poorest nations. Not a pretty picture but certainly possible and something our politicians barely mention.
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