CBS News Reports:
New numbers posted today on the Treasury Department website show the National Debt has increased by more than $3 trillion since President Obama took office.
The National Debt stood at $10.626 trillion the day Mr. Obama was inaugurated. The Bureau of Public Debt reported today that the National Debt had hit an all time high of $13.665 trillion.
The Debt increased $4.9 trillion during President Bush’s two terms. The Administration has projected the National Debt will soar in Mr. Obama’s fourth year in office to nearly $16.5-trillion in 2012. That’s more than 100 percent of the value of the nation’s economy and $5.9-trillion above what it was his first day on the job.
More here.
All of our macro-economic problems flow from one simple fact - as a nation, we are consuming more than we produce.
The main force behind our over-consumption is government. Fiscal policy (running deficits and incurring debt), regulations that inhibit production, welath redistribution (giving money produced by one person to another), a tax code that taxes production of income, savings and investment, a Federal Reserve System that has effectively given control of the economy and monetary policy over to the banking industry (who, in order to earn more profits, encourage debt) - all work destroy production and encourage consumption. Like a cancer, this debt and over-consumption is consuming our society.
The only way to solve our debt problems is to produce more - something our federal government simply does not understand. What a sad and pathetic state of affairs
Reply to this commentLinkReport AbuseSince $3 trillion is simply not a number that people can understand, this might help.
If we simply dispersed that amount to each US household, they'd each receive $30,000.
If we used that money to pay all residential mortgage payments (1st mortgages) in the entire country, it would cover 75 monthly payments (assuming average mortgage payment of $1000.....was $900 in 2009).
Tell me.....what would the economic impact be of no one having a mortgage payment for over 6 years (plus no foreclosures)?? Compare that to the economic result (lack-of) from all the stimulus spending that made-up this $3 trillion.
Reply to this commentLinkReport AbuseOne thing 3 trillion is is a huge percentage of the federal budget. If we can borrow this much, why not borrow the whole budget and eliminate all taxation while we figure out what the tax code should be?
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