Truth in the Elections

A trillion here, a trillion there
11/11/2008
The federal government is borrowing at the rate of $500 billion a month. Are we too big to fail?

by Sheila Weinberg, IFTA founder & CEO

When I updated our debt clock, I was shocked to see that the government's debt number had increased to more than $10.6 trillion. This was shocking because it was September 30, 2008 when the number had reached $10 trillion. When I reviewed of this short history, I found that it took less than a month to add half of a trillion of debt.

Now Senator Dirken's comment, "A billion here, a billion there, pretty soon, you're talking real money" seems outdated. Now it is a trillion here, . . .

It seems ironic that the federal government is borrowing money to bail companies out who are in trouble because they need to borrow money. Government officials say that we must bail out these companies, because they are too big to fail. If the federal government continues to borrow at this rate, is it too big to fail? Who is going to bail our government out, when we can't borrow any more money?

For me, I'm at the point of complete and total dismay and despair at the ongoing blatant, irresponsible mismanagement of our countries economic affairs that I'm even reaching the point of contempt for the government as a whole. The national debt is the primary focus of reason for my lack of confidence in spending or investing. Nothing is safe and nothing is sacred anymore. I can't see how this once great country of our isn't doomed for complete collapse and ultimate failure. If I sound pesimistic, I am but beyond that, I'm realistic. Is there any bright light on the horizon?

Posted by Scott on 12/28/2008 9:54:46 AM

Who are we(the US taxpayers) borrowing all these billions from?

Posted by Mark Bowen on 12/28/2008 9:54:54 AM

Well, what to say? I have watched this horror story unfold for several years. I no longer talk about it with family or friends. They simply do not want to see what is headed our way. Their solutions is more government and it is government that caused the sub prime collapse by forcing banks to lend to non-credit worthy people as part of the governments social engineering. So now we are on the Titanic and have already hit the iceberg and it is party time—and water is pouring in below deck. Just as our politicians have their own retirements (not social security) so what else do they have? Presumably they have their own multiple hideaways ready and paid for by us who will have nothing. The hideousness of the rejection of responsibility is appalling and on a scale unprecedented in human history except for perhaps Stalin who murdered million of his own people by starvation. Yet, this is what Americans have chosen by willful refusal to go beyond their own self preoccupations and see what has been gong on in government for decades. If you feel a sense of futility you are not alone. Willful blindness trumps all in our society. It is a form of bad faith. And bad faith of its nature rejects the true. We reject the true because it will impact how we live. And we are narcissists. Therefore, not one is to tell us we need to look at reality. After all, for narcissists they themselves are reality. So we are dealing with a fundamental moral failure of our people that is metastasizing without limit. We want “hope” but only if it comes in the form of a pleasant lie. Don’t disturb our quiet. Now where do we get money to borrow? For one, if we print it we don't need to borrow. So that "solution" is to become like Germ during the First World War and print worthless paper and takes wheelbarrows full of it to buy a loaf of bread. But how are you going to get your wheelbarrows? Oh, yes. Buy them from China. That way China will buy us up at bankruptcy prices. If you are going to do something in life it is best to start now. Tomorrow may be too late. That is true for us individually and true for this country.

Posted by Chuck on 1/29/2009 7:04:26 PM

There are a couple of problems with your analysis. First the U.S. is unique among all countries in that it's foreign debt is held in it's own currency. The U.S. dollar can sink as much as it wants and the U.S. still owes the same amount in U.S. funds. Basically they can print themselves out of this problem. What's China going to do about it? They need the economic growth U.S. consumption supplies. Secondly, there is no mention of military expenses. The U.S. spends more than all other countries combined on its military. What's the latest budget, wasn't it 650 billion without Iraq and Afghanistan? If this site was honest it would tackle that on the front page.

Posted by Peter W on 3/16/2009 4:15:59 PM