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May 12

What About that “National Debt”?

Over the past several weeks I have ranted to my Congress People about the lack of a Federal Budget and the resultant national debt incurred because Congress won’t budget expendetures (and give-a-way funds, or any funds!)  One of my readers had been doing his own investigative work about the “National Debt” – that $22 Trillion “we” owe and pay interest to use.  What About that “National Debt?”

Reader Kent Carson has taken the time and effort to try to explain what the National Debt is, how it is manipulated and who owes who what?  A formadible task as is shown below.

This is lengthy – but very, very informative.  If you have time to “muddle through 13 pages” I guarantee you will learn some things you didn’t know.

Comments welcome.

Tom Howe – FlyingWBlog – Hotchkiss, Colorado

 

2 comments

  1. Bill Marvel

    Stunning, just stunning.

    I’m sure that many in our lawyer trained and politically correct segments of society could pick this analysis apart. But they would also have to believe that up is down, hot is cold and dark is light.

    Most living in the world of common sense would see in it the simple fact that it is impossible to have a society where everyone owns a money printing press and simply spends all day, every day, becoming wealthy by turning its crank.

    And yet this is effectively what we have gradually and inexorably come to in this country with little hope of avoiding the predictable outcome. The very nature of our political and financial systems and national lack of fiscal discipline makes the trend virtually irreversible. There is no easy way out of this accelerating whirlpool and we have become a society that only wants easy ways out. We’re nowhere near the makeup that won WWII. Today’s approach to the hardship of reality is one of safe rooms and crying towels. This new normal will be tested for certain.

    I have said for many years that we are watching and living through the death of a once great nation. I don’t want it to be that way but I see what I see and respond accordingly. Even a quick read of this article makes one wonder just how soon that will come about.

    Bill Marvel

    1. Tom

      Again – Bill Marvel is on target.

      Comments from my younger brother (former CEO of First Security Corp. Brokerage Services and then CEO of the Bank of Hawaii Brokerage Services) after reviewing Kent’s analysis was that Kent is on target even though Kent’s reference to the Simpson Bowles Study may be slightly misguided and Kent doesn’t relate our national debt to the international debt picture – and the two should be (must be?) analyzed together to properly evaluate the overall impact.

      All former CEO’s are like that – borderline lawyer thinking…

      Here’s an addon from Kent Carson, our debt analysis author, this morning:

      Thanks for circulating my US debt analysis. I just hope we can induce a group of conservative US House members to pick up the “reduce spending” banner much as New Gingrich’s “Contract With America” group did back in the 1990s. They actually generated US federal budget surpluses from 1998-2001!!

      I have noticed a ray of hope in the person of Chip Roy, a new REP house member from Texas. Hopefully, he’ll become the spark that ignites a new “Contract With America”. Here’s where he stands on the topic……….

      ++++++++++++++++++++++++++++++++++
      Reduced Federal Spending

      With $21 trillion in debt eclipsing our economy, we can and must reduce spending, which hasn’t slowed down regardless of the party in power. That’s because of how the Washington establishment – “the swamp” – operates. So I’ll fight the return of earmarks, used in the past for back-room deal making to grease the skids in exchange for K Street cronyism. We also need the willpower to pass a balanced budget and refuse to increase the debt ceiling without meaningful spending reductions. Instead, Congress prefers to unilaterally disarm and hide in the corner from accusation of “government shutdown.” This is unacceptable, and spending must be contained immediately. As a member of Congress, I will make reducing spending a top priority – as it is the best method of making Washington far less important in our lives – and breaking the back of the Washington establishment.

      Chip Roy

      ++++++++++++++++++++++++++++++++++
      Hope your week is a good one.
      Best,
      Kent
      ++++++++++++++++++++++++++++++++++

      Tom

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