Is unsustainable government debt a foregone conclusion?
*Texas Straight Talk, by Congressman Ron Paul, January 2, 2012:
''Debt Burden Threatens American Families
Last week, as most Americans were celebrating the holidays with family
and friends, the Obama Administration announced plans to seek yet
another debt ceiling increase in the New Year. While some fiscal
conservatives will try to block this increase, their efforts are
designed to fail thanks to the procedure set up by the last debt
ceiling negotiations. Congress would have to pass a joint
resolution opposing the increase, which the president could simply
veto. Thus, an additional $1.2 trillion on top of our already
unsustainable debt is a foregone conclusion. Our Gross Domestic
Product continues to contract and now stands at $14.5 trillion.
The debt already far exceeds that and will soon hit the new ceiling of
$16.39 trillion.
Everyone in DC acknowledges that the debt is unsustainable, yet few are
willing to take serious steps toward addressing it. Politicians
in Washington cannot face the fact that the blank checks must
stop. Many think we can ignore the mounting debts and deficits
and eventually the economy will magically turn around and grow its way
out of the mess. If you really understand why the economy is
foundering, you understand the burden cannot all be put on the backs of
the American people while politicians stick their heads in the sand.
According to a USA Today analysis, there are currently over $61.6
trillion in unfunded future government liabilities, which amounts to
$528,000 per American household. A huge part of these liabilities
are Medicare, Medicaid and Social Security -- promises made to make the
American people feel secure in their futures. But how secure
should the American people feel knowing that a default is becoming more
mathematically unavoidable with every NEW program added, every bailout,
every debt ceiling increase, every new war we rush into, and every
round of quantitative easing from the Federal Reserve? The last
thing politicians should be doing is adding to that $528,000 household
burden, with either more spending or more taxes. This is
unequivocally a problem of too much spending by a government far
outside its Constitutional bounds.
It is especially a slap in the face to the American family when the
Federal Reserve dilutes the dollars we work for in order to bail out
profligate banks and governments in Europe. The already perilous
state of our economy and our currency should not be further endangered
in a futile attempt to save the Euro. The least the government
can do is allow Americans a choice in how to actually secure their
financial futures that doesn't depend on a sinking dollar and
irresponsible government. My competing currency bill allows for
that and I will continue to fight for economic freedom from foolish and
selfish whims of the central bank.
It is nothing new for Washington to kick economic pain down the
road. Optimistic politicians hope things will stay cobbled
together just long enough to get through another election cycle, or
that another administration will have to deal with the mess. The
longer this cowardly attitude prevails, the bigger the problems become.
''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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