The United States of America BORROWS $188,000,000 PER HOUR !!! YES FOLKS - THAT IS 188 MILLION DOLLARS PER HOUR !!! We are literally burnng up our future !!!
America is a Bankrupt nation when compared to our standard of living. We are living on borrowed funds, because that is how our Federal Reserve system wants it, and we have allowed good paying, tax paying jobs to have gone overseas. Add to that the tax cuts for the wealthy and corporation incentive give away's - and subsidies for things like growing corn, and you have an entitlement system that Americans rely on but that promises more than it can afford; a tax code that is complex, inefficient and perceived to be unfair; and a projected growth trajectory for debt that is unsustainable and threatens the country's economic future.
How unsustainable? By 2025, spending on Medicare, Medicaid, Social Security and interest on the debt is projected to suck up virtually all federal tax revenue, with interest costs alone accounting for nearly half. By 2040, there would only be enough in federal tax revenue to pay for interest and most of Social Security.[ You can opt out of Google Ads if you are a registered user at /ad-options ]
Why is America Bankrupt? It is because of energy and it's costs. You do not believe this?
America is a mobile, energy hungry and playing civilization - not so much a hard working one. Everything is high rise, high tech and air-conditioned. We improve manufacturing by automating it - and thus removing jobs. Not only do we remove jobs but skill as well. We subsidize a farmer to grow corn, and pay more for it than it is worth on the world open market. If it was not subsidized the farmer could not afford that ridiculously high cost of a tractor, fuel and crop and machine maintenance to grow such larger amounts of it.
If we eliminate the fuel equation, all things made here in America will go down in price. It will cost less to make them, transport them and run them. Hydrogen made on the fly with proper at home commercial manufacturing and safe guards as to the technologies and against export of tit will accomplish this. Easier said than done with non-technical types who functionally cannot court - running the government. that is why we have a debt and debt ceiling issue today.
By 2020, spending on Medicare, Medicaid, Social Security and interest on the debt will leave only 11 cents of every federal tax dollar to fund everything else the government does, according to projections made in March from the Government Accountability Office.
The good news, if you can call it that, is that in January the GAO had projected there would only be 8 cents left over, but since then the agency has cut its estimate of how much interest the government will have to pay.
In any case, 11 cents is still much worse than the 24 cents that the government has left over today after paying for the big four line items.
So how much of "everything else" can 11 cents buy? Not a lot, especially relative to what Americans are accustomed to their government providing.
Things like the national parks, the FBI, student loans, air traffic controllers, defense, the interstate highway system and food safety. The list goes on and on.
Consider this: In 2010, Uncle Sam took in $2.162 trillion in federal revenue. If the government only had 11% of that left over to pay for "everything else," it would have had all of $238 billion to work with.
Here's a sampling of what $238 billion would have bought in 2010:
- A little more than a third of defense spending ($667 billion) OR ...
- The Departments of Labor ($173 billion) and Housing and Urban Development ($60 billion), plus the National Oceanic and Atmospheric Administration ($5 billion) OR ...
- The wars in Iraq and Afghanistan (roughly $170 billion), the Department of Homeland Security ($44 billion), NASA ($19 billion) and most but not all of the parks, fish and wild life services ($6 billion). OR ...
- The Departments of Agriculture ($129 billion), Transportation ($78 billion) and Justice ($30 billion)
Beyond 2020, the 11% to pay for "everything else" would get whittled down to zero percent.
By 2040, there would only be enough in federal tax revenue to pay for interest on the debt and most of Social Security.
Sure, the country could try to borrow to pay for what revenue can't cover. But given the magnitude of what would have to be borrowed, the interest costs alone would be prohibitive - and that is what is happeneing right now. Ergo the need to raise the debt ceiling.
Another alternative: the government could abruptly raise taxes sky high and cut spending to the bone.
This is just one reason why the country's fiscal course is often described as "unsustainable."
So what have all the political fireworks in Washington accomplished so far? Not much.
It's likely the debt ceiling will be increased, although when and by how much is still very much up in the air. It has to - we are trapped in the Bankrupt state of the nation.
It's also expected that any debt ceiling bill will cut spending. But the deficit savings will fall short of the balanced, bipartisan grand bargain that serious fiscal experts say is necessary to start reining in the country's debt over time.
Any grand bargain package would have to include increased revenue and lower entitlement spending, they say. Congress is not serious about doing either - but instead pulling a sham to save their tails in the next election. The current bills under consideration include neither.
The kicker: All of the political grandstanding on the debt ceiling in the name of debt reduction has left the country's AAA credit rating vulnerable to a downgrade.
How did it come to this? There are a lot of factors, but here are just two:
While President Obama now embraces the idea of a grand bargain, he waited months to publicly embrace the framework set out by his own bipartisan debt commission. In other words he knew of the death bell ringing loudly in his ear. Nor did he use his bully pulpit early enough to get a rational conversation about debt reduction going.
House Speaker John Boehner, meanwhile, was negotiating a big debt-reduction plan with the president. But his party has also walked away from negotiations three times. And the most conservative and intransigent members of his party -- who broker no compromise on taxes -- have dominated the conversation.
Say lawmakers agree to a package of $1.5 trillion in spending cuts over 10 years.
Still nowhere on the table are any revenue generating plans that everyone can stomach
In one of the ideas of the "debt commission" is to Raise gas tax: The report would raise the federal gas tax by 15 cents a gallon starting in 2013. It would dedicate the extra revenue to fund transportation and limit spending on projects to whatever has been collected by the increased tax that year.
You need to exit gasoline or other conventional fuel use by then to save that hit - and it will come.
At one time the House and Senate - primarily Harry Reid - were considering proposals that would create a commission to come up with still more debt-reduction ideas.
In all of this - no matter if you are a consumer or a business, you need to reduce your energy costs, and Hydrogen use made on the fly and recycled as to waste waters over and over again is the only way. It is how we traversed space stuck in a capsule, and the Earth is really no different
It won't be long now before Americans finally wake up and realize the demand for fuel drives the price UP. The ONLY way to drive the price DOWN is to stop using Gasoline.