No matter what these politicians do in Washington, it will be a tax increase on everyone that has any or deals in any U.S. dollars; because their actions will devalue the dollar, which will increase costs in more ways than one.
There are several ways to make the economy more healthy than it is at present; however, nothing they are considering will do it. Let’s look at some simple figures and relate them to personal debt and how you or I would have to go about reducing our debt and let us use numbers anyone can understand.
For simplicity I’ll use myself in a hypothetical situation.
I owe $1 trillion dollars at a 5-percent annual rate, which equals $50 billion each year; so in order to decrease my debt I have to pay the $50 billion before anything can be deducted from the $1 trillion debt.
For example, if I pay $100 billion in the year, that would decrease my debt to $950 billion, so the next year the interest amount would decrease to $47.5 billion.
If, on the other hand, I fail to pay anything; the interest added on will increase my debt to $1.05 trillion and my interest for the next year would be $52.5 billion
The point of all this is; that if you do not cut spending far more (more than enough to pay the interest of what you already owe; plus the interest of the increased debt) than you increase the loan or in this case the debt ceiling, it does nothing but increase and postpone the problem.
If these wizards of finance push this problem farther into the future it just grows and grows rapidly and the debt has already reached a point nearly matching (and will soon pass) the Gross Domestic Product, which is the value of everything the entire Nation produces in the year.
We are to a point, that we will have to virtually give away land and/or natural resources in order to remain solvent and at the rate we are going the entire national economy will be depleted within a very few years.
There is no need to be concerned about your children receiving Medicare and Social Security, because there will not be any government left to write the checks.
We have a problem, a massive problem if our lawmakers remain so gutless that they cannot make any hard decisions. Maybe Ben Franklin was right, he wanted the National Emblem to be a turkey not an eagle.