Friday, February 19, 2010

The Death of America Part 2

Senator Barnaby Joyce was pretty well spot on when he raised concerns about how Australia would ever repay its national debt. Labor Party stooges fell over one another galloping out of the wardrobe in an effort to savage poor old Bad Boy for that. They even compared him to Joe Bjelke-Petersen. Barnaby woulda luved that!

Here is an excerpt from a Bad Boy Barnabys press release letting us know how much our children and their children will have to repay.

"Australian Commonwealth Government Securities outstanding, as of the 8th December, 2009 was $115.71 billion. By the 5th January, 2010 the amount had risen to $ 117.31 billion outstanding. By the start of February, it had risen again to $120.61 billion. Now, not even midway through February, it has risen again to $122.01 billion."

Ok with that in mind here we go with Death of America Part 2.

American political and economic leaders have sounded the alarm for years about the red ink rising in reports on the federal government's fiscal health. But now the problem of mounting national debt is worse than it ever has been before with -- potentially dire consequences for taxpayers, according to a report by the nonpartisan Peterson-Pew Commission on Budget Reform.

Over the past year alone, the amount the U.S. government owes its lenders has grown to more than half the country's entire economic output, or gross domestic product.

Even more alarming, experts say, is that those figures will climb to an unprecedented 200 percent of GDP by 2038 without a dramatic shift in course.

"Within 12 years…the largest item in the federal budget will be interest payments on the national debt," said former U.S. Comptroller General David Walker. "[They are] payments for which we get nothing."

Economic forecasters say future generations of Americans could have a substantially lower standard of living than their predecessors' for the first time in the country's history if the debt is not brought under control.

Is this starting to look familiar Australia?

By letting our incompetent politicians and their hidden advisors continue taking us down the American path we are lowering our own standard of living and that of our children and their children.

Government debt, which fuels the risk of inflation, could make everyday Australian's savings worth less. Higher interest rates would make it harder for consumers and businesses to borrow. Wages would remain stagnant and fewer jobs would be created. The government's ability to cut taxes or provide a safety net would also be weakened, economists say.

Meanwhile back in America:

In a recent ABC News poll, 87 percent of Americans said they are concerned about the federal budget deficit and national debt, and most strongly disapprove of how their political leaders are handling the situation.

John Podesta, former Clinton White House chief of staff and president of the liberal Center for American Progress, says lawmakers need to raise more tax revenue as part of the solution to fund "investments" for the future.

Ultimately, analysts say, solving the debt problem will likely require both tax hikes and spending cuts, along with broader structural reforms of the way government operates.

"Habitually spending more money than you make is irresponsible," said former U.S. Comptroller General David Walker. "Irresponsibly spending someone else's money when they're too young to vote or not born yet is immoral."

I would have to agree, but how long since a politician has been moral?

Back to climate change next post folks!

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