“America today faces one of the greatest threats to its existence since our founding,” writes U.S. Senator Tom Coburn in his chilling new book, “The Debt Bomb.” “The threat does not come from any foreign army or terrorist network, but from our own government and its unsustainable spending. If we don’t change course in the near future — most likely the next two years — America as we’ve known it could soon be a shell of its former self. We could face a sudden economic collapse worse than the Great Depression, or we could enter an era of managed decline and waning influence,” Coburn writes.
If Coburn’s premise is accurate, what are our nation’s leaders doing to ward off such a collapse?
Most Americans seem preoccupied by Phillip Phillips winning “American Idol” Wednesday than those citizens who are paying attention to the imminent danger around us. However, ignoring, denying or wishing the inevitable away won’t work in this case. It might be easier for Americans to think they are one of the Avengers than to focus on the real mounting fiscal crisis that threatens America’s future and way of life.
“Indeed, a new report by the Congressional Budget Office (CBO) says the U.S. is staring over the edge of a ‘fiscal cliff,’ in growing danger of a double-dip recession, higher unemployment, and a European-style debt crisis,” said best-selling author Joel C. Rosenberg. Our debt has reached new heights of nearly $16 trillion and the Congress and president are sparring now to raise the debt ceiling by the end of this year. Raise the debt ceiling? Raising the debt ceiling is like giving a crack addict just one more hit to ease their jitters.
The U.S. has $65 trillion in unfunded federal commitments that are rapidly approaching critical mass.
In order to avoid the financial meltdowns that are looming in Europe, we need to not only read Coburn’s book, but insist that our political leaders begin showing restraint in spending and taxing our economy into bankruptcy. We’re not voting for the next American Idol, but our nation’s future. It’s time to contact our leaders and ask them to vote for America’s future.
Don’t agree? Only 30 percent of likely U.S. voters now say the country is heading in the right direction, according to a new Rasmussen Reports’ national telephone survey taken the week ending Sunday, May 20.
—Keith Hansen



Comments (37)
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did I say that "overwhelming debt is helpful to improving economic activity", muehlbau? I simply asked the question, "What were the factors that allowed a booming recovery and SHRINKING of the national debt" during a comparable time in US history-- post WWII?
Btw, I did not 'edit' anything. My original comment on the subject was "coming out of WWII" which you apparently misunderstood. My second comment was "coming out of (after) WWII" and my third comment was "post-WWII".
I'd say that the 50's were a good example...
of the relative size of the debt going down and prosperity going up. Do you disagree?
Oh, and I'd like your source...
...for "most credible economists" saying we're at 70 percent. The official numbers I read say we were closer to 100% as of 2010 for total public debt (which doesn't include the unfunded liabilities of Social Security and Medicare).
Responding to a comment...
muehlbau said: "Oh, and I'd like your source..."
What a great idea muehlbau! The comments and quotes in this space would be much more useful if everyone (including Mr. Hansen) would provide sources for their "facts".
For that matter, you might have provided a source for your own claim that "The official numbers I read say we were closer to 100% as of 2010 for total public debt (which doesn't include the unfunded liabilities of Social Security and Medicare)."
P.S. You realize, of course, that Social Security has been an "unfunded liability" from the begining -- it was designed that way, with the payroll tax paid by the employed going to pay the benefits due to retirees.
Gladly, Mission...
I got my information from the following source:
http://www.gpo.gov/fdsys/pkg/BUDGET-2012-TAB/pdf/BUDGET-2012-TAB.pdf
Page 140, it says debt as a percentage of GDP for 2010 is over 93%. That's closer to 100% than 70%, so I want to see Chey's source, since our numbers disagree.
And of course I know that Social Security is a gargantuan unfunded liability. I've written about that specific problem many times. It's design has been fatally flawed since the beginning, so what's your point?
Crickets...
...I figured.
Sorry muehlbau,
some of us have a life outside of the internet. On p. 140 of your source, if you subtract the 'debt held by federal government accounts' (money borrowed from trust funds for social security, medicare, etc-- money we owe ourselves), then the percentage figure for debt owed to the public (US bondholders, foreign countries,etc) is 62% of GDP for 2010.
In an interview with NPR, economist Simon Johnson indicated we're around 70% of public debt to GDP currently.
http://m.npr.org/news/Books/149394336
If 'the sky were falling' one might expect that interest rates on US treasuries would reflect that as those who purchase treasuries would demand higher interest for perceived risk. But rates are very low.
Yes, the ongoing budget deficit and accumulating public federal debt is troublesome, but not unsolvable. The question again is who's going to pay: the middle class and poor via slashes or outright destruction of programs like ss and medicare or those who have benefitted richly from 40 years of policies favoring the wealthy?