As we head into the final stretch on the presidential campaign, the ultimate decision on who leads the nation into the future comes down to a few core issues for the most part. We must, as Americans who share a love for this republic, make a choice on whether a continuation “Forward” of the past four years or a different, more fiscally responsible course will ensure the perpetuity of the country.
With a $15 trillion economy and a $16 trillion federal debt, the United States is currently at 107% debt to GDP. Much of our debt has been funded the past three years by Quantitative Easing, with the Federal Reserve having printed over $3 trillion of new bills to increase circulation in M1 and incestuously buying our debt with that new currency.
Those factors, combined with four consecutive years of an average $1.44 trillion in deficit spending, have given us an economy and a currency that’s nearing an implosion stage. David M. Walker, former Comptroller General under President Clinton, says that at our current trajectory, the entire economy and currency will collapse in 2-3 years.
An important point must be made as it relates to the deficit. Many people have erroneously and fallaciously blamed George Bush for the deficits we now have because the two fronts on the war on terror, Iraq and Afghanistan, were “off budget.” Yes, they were “off budget,” meaning they were not included in the president’s or Congress’ budget figures, but they were not off the balance sheet. The cost of those conflicts was, by law, included in the total debt and total deficit figures each year.
To put the “off budget” concept into perspective, the massive spending of the past six years has all been off budget. Nancy Pelosi never passed a budget in the four years she was Speaker of the House, and it’s been three years since the Senate passed a budget. The end result is that over $8 trillion in spending over the past six years has all been “off budget” but still included in the OMB (Office of Management and Budget) total expenditures for each of those years.
Economists are unanimous in their concerns for the “Taxmaggeddon” scenario we face at the beginning of 2013 when the tax cuts implemented in 2001 and 2003 and the adjustments from 2005 are set to expire on Dec. 31, 2012. This amounts to an automatic tax increase of over $600 billion that will impact everyone in every bracket. Two years ago, Obama said allowing expiration of those tax cuts was unfeasible until the economy improved. Well, two years ago, we had a GDP growth rate of 3.5%. We’re now at 1.3%. The case is even stronger now that none of those tax increases should be allowed, as they will most assuredly push the nation into another recession.
We also have a sequestration crisis facing the nation at the end of the year. This act has already imposed $45 billion in cuts to defense, will immediately cut another $60 billion, and will automatically impose over half-a-trillion in mandatory cuts to the military over the next several years if not acted on. Obama promised in the debate the other night that this will not happen, but he also promised us four years ago that he would cut the deficit in half. His “promises” ring hollow.
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