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