Dear Editor,
Try visualizing the number “one trillion;” that’s a one in front of 12 zeroes. That number boggles the mind unless you are a U.S. congressman.
Now, knock your noggin and visualize $8.3 trillion. That amount is what our national debt is at this time; not counting off-budget expenses like $900 billion for the war in Iraq.
Please do not worry; our economy is humming. We are affluent. This is a strange paradox. Even though our economy improves, the national debt increases.
With a booming economy and increased taxes paid to the government, the debt should be going down. With increased spending, and despite an increased tax take, the government has to resort to borrowing through the issue of U.S. treasury bonds to make up the deficit in the budget. The treasury bonds are bought by international bankers and countries such as China, India and Saudi Arabia. These bonds yield a 5 percent interest return; such interest payments are part of our annual budget expenses.
Until the sun rises in the West, all debts must be paid, one way or the other. We have a national debt of $8.3 trillion.
With a current budget of $2.7 trillion, there is a $700 billion deficit; not counting those $900 billion off-budget expenses for the war in Iraq. This is a financial nightmare created by a profligate Congress.
How long this will continue is anyone’s guess. The debt can be paid off by inflating the currency. Thus, the burden falls upon the industrious and the thrifty; bank accounts become worthless; insurance policies lose their value; housing prices sky-rocket; paper dollars erode in value; and people turn to precious metals such as gold and silver for security.
A child born today assumes a debt of $156,000; the child’s part of the national debt. Only the U.S. Congress, which holds the nation’s purse-strings, is in a position to do something to correct the situation; so far, they’ve shown no inclination to face up to the problem.
Joseph G. McCormack, Morgan Hill
