Can You Spare $9 Trillion?
This article was written by CBS News White House correspondent Mark Knoller, Sept 6th 2007 before the 2008 financial collapses
Few took notice, but for the first time in U.S. history last Friday, the national debt hit an all-time high of $9 trillion.
To be exact, the total liabilities of the U.S. Government hit $9,005,648,561,262.70, according to the Bureau of the Public Debt at the Treasury Department.
Numerically, that’s in excess of the debt ceiling set by Congress, which stands at $8.965 trillion.
Some components of the national debt are excluded from the debt ceiling calculation.
But had it truly been reached, the Treasury Department would be barred from selling any more bonds, notes and other securities until Congress raises the limit.
Treasury Secretary Henry Paulson served notice on Congress in July that he expects the U.S. Government to bump into the debt ceiling in early October and that lawmakers need to raise the ceiling before then.
No official notice of the national debt milestone was taken by the White House. Understandably. It’s an embarrassingly large figure for a president who claims to be fiscally-conservative to have to explain.
Mr. Bush often boasts about his commitment to fiscal restraint, and trumpets his efforts to bring down the annual federal deficit from its all-time high of $413 billion in 2004. The Administration forecasts a deficit this year of $205 billion. The forecast from the Congressional Budget Office is lower still at $158 billion.
But Mr. Bush almost never mentions the national debt. On the day he took office, the debt stood at $5.727 trillion. That means it has increased by 57 percent on his watch. So far.
And it’s not just the size of the debt that’s historic. So too is the amount taxpayers must pay annually in interest payments on $9 trillion in borrowed funds.
Last year, the interest on the debt exceeded $405 billion dollars. This year’s interest payments will be even greater.
Lets Blame The National Debt & Financial Crisis On Events Beyond Our Control
by William M Wright BBA, MBA
Yes, our government has faced recent national calamities that were beyond their control. But this is all the more reason to more carefully consider the unnecessary cost of many homeland defense grant give-aways and an Iraq foreign invasion and occupation.
There has never been a time in American history where all events were within our control.
For the same reason financial planners advise everyone to reduce spending and save money for a "rainny day".
The (R) Regan administration worked with democrats to restore some fiscal soundness to the social security system. His administration minimized America’s cost in foreign wars and middle-east troubles while
having to worry about defending againest the world’s most powerful military force (the U.S.S.R) and a nuclear WWIII holocaust.
But, the current administration has used the War-On-Terrorism (we all support) to convince us to spend billions more in military hardware and to spend a trillion to invade and occupy a country that had nothing to do with 9/11 or our national security. We are spending billions weekly in Iraq with no regard to any cost-benefit analysis. Some leaders want you to be obsessed with “Winning” so you give no thoughts to human and financial “Cost”.
Our Government used the same "must win at all cost" sales pitch in Vietnam. Vietnam accomplished nothing for America's national defense or world democracy. Instead it help give us a decade of stagflation.
In fact North Vietnam never honored the “Paris Peace Accord” they signed to hold free elections in South Vietnam in return for U.S. withdrawal. Now the American government that believed American soldiers needed to “defend freedom” against “communist” in Korea and Vietnam (where over 90,000 American’s died fighting China backed armies) has spent the last two decades making it easy for Communist China and now Communist Vietnam to capture American jobs and markets.
Yet, the same American government maintains a 45 year old policy of “No free Trade” with Cuba.
Is it any wonder so many Americans see little value in spending over a trillion dollars and spilling more blood in Iraq ?
Is Iraq worth expanding our National debt while we get the world to forgive most of their National debt? Was the value of Iraq oil (which has now quadrupled in price) used to repay American taxpayers as planned? No!
David Walker is America’s CFO and has worked for democrats and republican.Listen to his video’s above. He makes it clear that the long-term financial crisis facing every American greatly exceeds the short-term threat of any Anti-American terrorist to our financial freedom.
David Walker is a great American Patriot.