Follow by Email

Friday, July 29, 2011

By the numbers

There's much conversation going on throughout the Nation at the present with much rancor and vitriol between the major two political parties, Tea Party, both houses of Congress, the White House and the citizens of this great nation. The cause for such furor stem from the need to raise what is commonly called, the "debt ceiling", simply put, debt ceiling is a cap on how much money the US federal government can owe. The debt ceiling has been raised 74 times since March of 1962 and 10 times since 2001. In the past, the debt ceiling was raised without much of a squabble and it only took a one page document to accomplish the raising of the debt ceiling, but with the mid term election of 2010 and the various political activist groups, things are a bit different this time around. The newly elected members of congress in the house of Representatives seems to have a mind set that they have been given a mandate to close the purse of the federal government. Albeit, I do believe their ideologue has cause them to act in a fashion that is not beneficial to the well being of this nation as a whole. There is a difference between "debt" and "deficit", the former refers to an obligation, something that is owed, which translate 'you have already utilized or are utilizing the goods; it's time to pay up' , it's the same as if you were making payments on an automobile, now the latter refers to an excess of expenditure over revenue, which is to say 'you are spending more than you are taking in' i.e. your weekly bring home pay is $300.00, your mortgage on that 3'000 sq, ft. home is  $1,400.00 a month, you are $200.00 in the hole in just one month, that $200.00 short fall is your deficit as it pertain to revenue minus expenditure. In twelve months, at that rate of 'short fall' you'll be behind to the tune of $2,400.00 dollars. This is what the federal government is facing. Moreover, one must take in account the interest that is accumulated on such borrowing. For the U.S. government, it has been reported that out of every dollar the federal government spend, no less than 40 cents is borrowed, ladies and gentlemen, this kind of borrowing will eat you alive.
At the end of fiscal year of 1992, the national debt was 2.999.7 trillion dollars, the end of fiscal year 2000, 3.409.8 (T), end of fiscal year 2008, 5,803.1 (T), with  approximately two months before the end of this fiscal year, it stands at over 14 trillion dollars. No country can continue on a path of prosperity with those kind of incongruous numbers. Further more, no nation is able to remain a nation with its citizens unable to compromise for the good of that country. This country did not dig this hole we find ourselves in over night and we will not extricate ourselves from this place of indebtedness on any short order. But surely, the one thing we must do, is work together and remember, "we all are Americans and in great effort with unity of mind and body, we shall chart our course with much resolve to accomplish that which we know we must, for the survival of the nation hinges on our toil for the greater good of our most beloved". 

No comments:

Post a Comment