Whether it’s the individual, a household, a business, or a government–in order to spend nonexistent money, borrowing is required.
The United States congress is now committed to spend $1.84 trillion dollars more than it has by October 2009 (the end of 2009’s budget year). Where will they get this $1.84 trillion? Answer: like any individual, business, or government, they must borrow it. From where? Individuals use credit cards or apply for loans. The U.S. government sells treasury bonds to China, et al, transfers excess dollars from its social security trust fund in place of I.O.U.’s, etc., etc., etc. This of course must be paid back with interest. Adding the interest owed on $1.84 trillion (just for easy figuring let’s say) brings the difference for this 2009 red ink (deficit) to a round number of $2 trillion. To avoid glazing over one’s eyes in trying to grasp how much a trillion dollars is, try this calculation. Spend one million dollars a day for 3,000 years. That would add up to one trillion dollars. One would have to begin spending a million dollars a day while King Solomon was having the temple built in Jerusalem, a thousand years before the birth of Christ. Spending two trillion dollars in Bible chronology would require one’s spending one million dollars a day beginning when Adam and Eve were evicted from Eden’s paradise (approx. 4,000 B.C.).
How long before Obama’s administration and his compliant big spending congress are evicted from their positions of power to spend America into financial oblivion. The $1.84 trillion red ink spending beyond their means is only for the U.S. 2009 budget (DEFICIT). This $1.84 trillion borrowed money will be added to the accumulated borrowed deficit money spent and still owed from previous years. These accumulated deficits are called DEBT.
Now our big spending spreader of American’s wealth has concocted a 3.6 trillion budget for 2010 spending. This will be $1.3 trillion more than the federal government’s revenue will be. Annual deficits for 2010 to 2019 are estimated to be a total debt of $7.1 trillion by Andrew Taylor (Associated Press, 12 May ‘09), 9.3 trillion by Robert Samuelson (Washington Post, 18 May ‘09).
The Deseret News (21 May 2009) editor’s column points out “Obama’s proposed five-year budget plan would raise interest payments” on our nations debt by the year 2015 “to more than $500 billion.”
Now California is bankrupt by their $21 billion debt. They voted for Obama. Will he bail California out along with General Motors and Chrysler Corporation? Then one must figure in the untold costs of his energy policy called “cap and trade” plus the coming baby boomers pushing unfunded costs of Medicare and social security into this ocean of red ink.
Could this become unsustainable? Could America’s bubble burst like the government’s “affordable housing” fiasco? Is America too big to fail? Unless Americans wake up and slam the brakes on government spending more and more trillions of borrowed dollars, we will surely discover the answer to those questions.
Washington Post columnist George Will writing about “upside down” economics (10 May ‘09) reminds America that it took nearly three months with 116,000 patrons visiting New York’s Museum of Modern Art to notice that Henri Matisse’s painting “Le Bateau” had been hung upside down.
President Obama assures America through his adoring press that greater spending and borrowing aimed at controlling Wall Street, Main Street, and adding “affordable healthcare for all, affordable college education for all that he and his administration are on the correct path to a more utopian Garden of Eden society. When will Americans wake up and see Obama and his cohorts are partaking of the forbidden fruits of “upside down economics” and need to be cast out.