The Number One Threat to National Security
The number one threat to America surviving as a nation is not Iran’s desire to gain nuclear technology, nor is it another attack upon us by al Qaeda or other militant extremists, instead it is one of our own doing, an open and public conspiracy between the politicians in Washington and the America public. The top threat to our country is the amount owed to the national debt and our inability to understand the concept of a balanced budget. The debt itself is nearing ten trillion dollars ($10,000,000,000,000 that’s a lot of zeros, folks). The deficit is estimated to come in at around 350 billion dollars this year, but even this amount does not include the totals spent in Iraq and Afghanistan (running ten billion dollars a month). The deficit is almost four times the federal budget’s yearly expenditure on education.
Even if we were to magically balance the budget (given the two nominees economic plans, this is the only way it could be done), the interest accrued on the national debt for this year alone is over 400 billion dollars. At this rate, we will far outpace 2007’s total of almost 430 billion dollars. Some would consider this a hefty price tag to pay just to keep the debt where it stands now, but apparently, neither our government nor the voters think so.
So why do I consider this to be the most serious threat to our nation? China is currently holding 503 billion dollars of this debt. They wouldn’t need a huge invasion force or a 21st century navy or air force to bring us to our knees; all they would have to do is dump their bonds (the amount noted above does not include the 376 billion dollars that they hold in Freddie Mac and Fannie Mae bonds). The dollar would become close to worthless. Just look at Zimbabwe’s inflation rate to see what could happen to the dollar. Do I think China would do this? No, they are too bound up with us to play this card (see this article, though, because they may have no choice).
Due to the nationalization of Freddie and Fannie recently, the debt has grown by quite a bit, though only time will tell how much is actually added to the taxpayers tab.
(By the way, there are many people complaining about the amount of money we send overseas for oil, but coming in at number four for countries we owe money to are the oil exporting countries–170 billion dollars.)
The weight of the debt however is a huge drag on the economy, which is one reason why the dollar is as low as it is against other currencies (though lately it has been moving up as the economic slow down in the US spreads around the world). Do you want lower gas prices? Make the dollar stronger. The more the debt piles up, the weaker the dollar will become. The way that I understand things, at some point the debt and its interest will start to affect the interest rate beyond what the Federal Reserve can control.
Currently the debt to GDP ratio is at 66% (the debt of 9.5 trillion divided by the 14 trillion of the GDP-Gross Domestic Product). Too many more years of the current spending trends and the debt will exceed the GDP. I only have a degree in English Literature and a background in machine design, but even to me this seems bad. We have become the best allies of our own worst enemies, to paraphrase the wise man. The debt will reach critical mass, the Chinese won’t have to do anything, and our economy will collapse on its own.
Am I overstating the case, engaging in hyperbole? Perhaps to a small degree, but if we do nothing, then we will surely put the theory to a test. The Raabid AArdvark is mainly interested in presenting possible solutions to these sorts of problems.
Solution One:
Very simply declare the debt null and void, just as Argentina did in the 1980s.
Yes, the total effect would be just as if we do nothing, but this would be under our control. In addition, it would have two positive outcomes. The Chinese would be forced to devalue the Yuan from the dollar, which in the long term can only be a good thing.
Secondly, I think it would be good for the American people. Surely there would be widespread unemployment and poverty, but struggling and suffering show the true temper and mettle of one’s character. It is when the times are at their worst when Americans are at their best.
Plus there are a great number of people out there that have been overcome by the dread disease entitlitis, this solution would cure that. The five or fifteen years it would take to overcome the economic downturn of doing away with the debt may also break the consumption-at-all-cost materialistic mind set that many Americans seem to have. But even this wouldn’t do if we don’t get the deficit under control.
Solution 2:
PAY IT OFF!
You, Jane and Joe America, you caused all this. Is it any wonder why we have such a run away deficit? Given a choice between a candidate who says we must raise taxes and one who says he will cut taxes, whom do you think the people will elect? It seems Americans don’t really care what the government does, just so long as they cut taxes.
Americans stand horrified and uncomprehending when bridges collapse, they clamor and yell when it is discovered that toys are imported covered in lead paint, they are aghast and gnash their teeth when tainted vegetables fill the grocery store shelves. The hue and cry is raised, where are all the inspectors? How could the government allow this to happen? We demand answers! The answer is you wanted lower taxes. Taxes pay for things like inspectors and roads and schools. Oh, and by the way, you owe ten trillion dollars. We take cash (preferably British Pounds or bullion).
My grandfather, who lived through the depression, would often say Quit your bitching. The only way to get rid of the debt is to pay it off. There has been a lot of talk of patriotism in the last number of years, and it seems to me that patriots are willing to sacrifice something personal for the greater good.
So, Americans, I am calling for a new type of patriot—the fiscal patriot. For the well-being of our country and your childrens’ future, pay your taxes! Resist tax cuts and demand from our so-called leaders that they start addressing the problem of the deficit and debt. Give the president, no matter who gets into office, the line item veto. Pass a balanced budget amendment. Announce to the public, as many cities do with men caught with prostitutes, those individuals and companies who shirk their patriotic duty by using loopholes to get out of paying their fair share of taxes, so that patriotic Americans can boycott their businesses and shame individuals into doing what they should. This country has given us a great deal of opportunities that are not available in many places across the globe. I think it is time we gave something back to the country that allowed us all of the things we do have. There is nothing Americans cannot do when we set our minds to it, and if we can get this tackled, then there is no limit to what we can accomplish.
(And, in case you were wondering, I do not support the Exorbitantly-High Sales Tax, also badly know as the fair tax.)
