What is our national deficit?

The fiscal budget for 2011, is out from the Whitehouse. The numbers are staggering. If you know what the deficit is, then you are ahead of the game. Our budget is a very complicated thing. However if you think of it in context with the budget that you try to stay on at your house, then you have in essence broken it down into something that is understandable. This is a short breakdown of the fiscal budget for the year ahead.

“Overall 2011 Spending: $3.834 trillion.

· 2011 Discretionary Spending: $1.415 trillion.

· 2011 Projected Deficit: $1.267 trillion or 8.3 percent of GDP (down from $1.556 trillion or 10% of GDP) GDP, is our gross domestic product or the amount of money that business in this country generates each year.”

The key word here is deficit, “which is the sum of all previously incurred annual federal deficits. Since the deficits are financed by government borrowing, national debt is equal to all government debt outstanding.” Our current national debt is $12.290 trillion. To put it simply, the deficit is the amount owed after all monies taken in are accounted for and our bills are paid. The amount left over; is our deficit.

Our government runs a magical checkbook. If you or I used our checkbook like they do. We would be locked up for a long time for fraud or at the very least; writing really bad checks. Imagine taking an empty checking account and writing a check for $1.267 trillion dollars. How long would it be before the authorities took you off to the slammer?

Our government throws numbers like this around like they are confetti. Never batting an eye at the significance of the size of the number. So let us ask the question; what is a trillion dollars?

“A trillion dollars = $1,000,000,000,000.

That’s 12 zeros to the left of the decimal point. A trillion is a million million dollars.

The U.S. government spends more than the entire Gross Domestic Product (GDP) of Australia, China and Spain combined. If you laid one dollar bills end to end, you could make a chain that stretches from earth to the moon and back again 200 times before you ran out of dollar bills! One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills.”

What does one TRILLION dollars look like? (click this link to see for yourself)

This talk of fiscal responsibility is the most disingenuous load of lies that we have ever encountered as a nation. Our country’s very existence is being challenged by these monumental debts that defy belief. Our leaders keep spending at unparalleled levels and are in no hurry to stop. Like drunks with a key to the liquor store, they spend like there is no tomorrow. What will it take to stop this incredible stupidity?

The healthcare bill laying on the table in front of our congress is inches away from passing. Do not doubt that they will attempt to pass this thing.

When you spend like this, one thing is inevitable. Someone is going to have to pay the bill. Who will it be? You or me?

*A footnote to this story, the finance dept. today announced that the government will borrow $395 billion to put towards the deficit of this year. Crazy…hunh?

The Aftermath

The address last night was as expected, only with a few twists. The fallout today was enormous. Even the Times Magazine took a few swipes at the President and they are an ardent supporter.

What was all to apparent last night was the arrogance of this administration. He personally invited the members of the Supreme Court to attend, only to turn on them for over turning a key piece of legislation that is guaranteed by the second amendment. Freedom of speech. Now businesses can spend as much money as they want in campaign adds for their candidates. leveling the playing field to massive campaign contributions by private citizens.

Also, his remark of “never quitting.” Geared towards the opposition to his health care over haul. Who is opposing this monstrosity? The American people are. His remarks last night indicate a disdain for the people of this country and are unsettling at the very least. He just doesn’t get it. The public spoke loud and clear when they elected Scott Brown in Massachusetts. They do not want more of the same. Which is exactly what we received last night. More of the same.

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government.“

Thomas Paine

Are we headed towards Socialism?

I am worried about my country. I am concerned about the new direction that it is headed towards. There is a lot of talk around, that we are turning into a socialist country. Is this true? Lets define Socialism.

Webster’s defines Socialism as the following;

so·cial·ism Pronunciation: \ˈsō-shə-ˌli-zəm\

Function: noun

Date: 1837

1 : any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
2 a : a system of society or group living in which there is no private property b : a system or condition of society in which the means of production are owned and controlled by the state
3 : a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done

For the past year, our Government has been on an end run, in it’s quest to take over or control big business’s and banks. All in an effort to head off a perceived economic crisis. We have come as close to another Great Depression as we can possibly be, without actually being in one. Job losses are in the millions. Currently the unemployment rate is around 15% depending on which statistic you choose to believe. The housing industry has collapsed upon itself and many people have been faced with losing their homes, due mostly to loss of income.

The Big Auto Manufacturers, such as GM and Chrysler have all come perilously close to folding up, due to harsh economic conditions. Our government stepped in and bailed them out. Close to $80 billion of taxpayers money was spent. They are not out of the dark yet. The government is now basically controlling these two giants, setting up rules as to how they should conduct business.

The bank bailout cost over $700 billion in taxpayer money with final estimates even higher than that. Now the big banks are being seen as the enemy and a special tax may be levied against them, I suppose as punishment for bad behavior. It being noted that a lot of the money has been paid back already, with interest.

The total amount of the Economic Stimulus Act was estimated to be around $800 billion however, the projected 10 year cost of the stimulus bill is more likely to reach $2.527 trillion, according to economic experts.

So where does all of this spending, leave us? Currently, the National Debt is around $12.5 trillion dollars. This is around $40,000 for each man woman and child in this country. The Congress recently had to increase the National Debt limit by $1.5 trillion and are currently in the works to increase the limit again, all in the short time span of one year. This phenomenal spending rate is unprecedented and also, un-sustainable. Our government has to stop this progression before this country reaches a point that it cannot recover.

On the agenda is a Universal Health Care Over-haul, projected cost; $900 billion. Actual cost over ten years? $1.5 trillion. Unbelievable.

Our congress has turned a deaf ear to the cry of the American people and are intent on passing this latest package, apparently without concern for our economic future. If we are unemployed, who is going to foot this bill? I ask you, when is enough, enough?

Are we headed towards Socialism? It seems that way. This is not what our Founding Fathers had in mind, when they signed the Declaration of Independance and wrote the US Constitution.