I mean, together, Canada and the U.S. are pretty big places. We have many NFL and NHL players among us. They alone kick serious butt.
The U.S. debt would have to be awfully big to threaten anyone on my block.
So, how big is the U.S. debt anyway?
According to recent news, in 2008 “The U.S. National debt was $9.6 trillion and climbing at a rate of $2 billion a day. U.S. debt in 2008, as a percentage of their GDP (all the goods and services they produce), was 75% and rising.” (M. Warren, Feb. 12, London Free Press)
Okay, that was then. What about now?
“Today their fantasy financing is approaching Ponzi scheme proportions. The federal debt has exploded to over $14 trillion. It's now growing at $4.4 billion a day. And, it's reached 100% of GDP, or about $126,000 per taxpayer.”
So, not only has the daily debt load more than doubled per day, it appears to be rising by about $1.5 trillion per year.
Yes, it looks bad when we look at the numbers.
And guess what? It looks even worse when we look at a few charts found online. (E.g., Google - U.S. National debt)
[From 1940 to 2007]
[U.S Debt compared to GDP]
[U.S. Debt to 2009. A ladder is needed to reach 2011]
In spite of the numbers and charts, M. Warren’s articles goes on to say that “the results of the mid-term elections, Republican control of the House, signals that a large segment of the American people are not ready for serious fiscal reform, even with a looming economic Armageddon. A false air of entitlement still prevails. There is an abiding conviction, even at the most senior levels of the U.S. government, that all is well, and that the ‘old normal’ norms have returned.”
In the Feb. 14 issue of The London Free Press I read that Pres. Obama wants to cut the U.S. deficit by $1.1 trillion over ten years, or by $110 billion per year. (Happy Belated Valentines Day. Don't ya just love it?)
Even with that reduction, the deficit will still rise by approx. $1.4 trillion per year and therefore increase the national debt - from the current $14 trillion - to $28 trillion by 2020 - 2021.
It’s a disaster in the making.
As well, US Republicans are not impressed with Obama’s plan, will likely stall any reductions, so the national debt will very likely more than double in size in just ten short years.
And there are still people who talk about returning to the good old normal days??
Good grief! Charlie Brown would say.
In my opinion, gone are the days of the old normal, in the U.S. and here in Canada.
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Please click here to read The Simple Life PT 1.
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