From this morning's JS letters section:
FEDERAL DEBT
Real and present danger
Last week, our federal debt passed $12 trillion - a mind-boggling $3 trillion increase in just two years. To put this into perspective, the total value of our yearly Gross Domestic Product is around $14 trillion.
But this debt is just the tip of the iceberg.
Americans have unfunded promises to pay for:
Retirement benefits for government employees;
$38 trillion for Medicare;
$7 trillion for Social Security.
The grand total of liabilities is about $60 trillion, overwhelming GDP by more than four times and exceeding our combined net worth of approximately $53 trillion.
On top of this, we are about to expand Medicare through "health care reform." Today's D.C.-speak says it pays for itself. It is another spending fraud.
The sponsors use faulty accounting, calculating 10 years of increased taxes for six to seven years of health benefits. In essence, it's another Ponzi scheme, which will add another $2 trillion in debt.
Day by day, the hole the United States government is digging is getting deeper and deeper. The numbers are so large, it is beyond belief. One has to wonder how long our creditors, mostly foreigners, will continue to support this spending frenzy. Ominous signs are appearing - the traded-weighted dollar index is down about 8% so far this year while the price of gold has rocketed 30% to more than $1,100 an ounce. This is the greatest macro-economic risk I have seen in my 40-year investment career.
One of our gifts is the ability to express opinions. This is one of the most critical times in our history to exercise our rights.
Reach out to your representative and let these D.C. turkeys know you will not support the unsustainable path we are pursuing. This is perhaps the best Thanksgiving gift you can give to your family and the country we all love.
Bill Nasgovitz, Founder and president, Heartland Advisors Inc.
Milwaukee
18 COMMENTS
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MADDOG - Nov 23, 2009 11:14 AM
Mombo Napolitano - Nov 23, 2009 11:32 AM
Bad Momma - Nov 23, 2009 11:56 AM
All this irresponsible spending makes me feel like we United States citizens are being dragged in a whirlwind of madness to a dire end.
President Obama and Congress, not even you, who have superior knowledge not available to your subjects, have the power to supersede the laws of math.
Your spending, your programs, all have one thing in common, the arrogation of power to government and to politicians and the theft of liberty and wealth from citizens.
lizbeth - Nov 23, 2009 1:32 PM
country? In less than a year we have
become a debter nation. What does that
do for you? Scared? Weep? Angry?
Have you given a thought as to what
you as a person can do? One person can
do nothing. In the thousands, the town
hallers tried. Wait for the next election? Are we sure it would swing
your way? Give me liberty or give me
death????? We might not like their
answer! Does anyone have a solution?
Help
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