Should we balance the nation’s budget or should we pay down the national debt? It would be nice to do both but that is not going to happen. Instead, thanks the most inept bipartisan government in history, we have mortgaged our future and the future of our children for generations to come. I’ve said for years that the real money makers are those who finance a nation’s debt. Here in the United States that entity is the Federal Reserve Board itself, owned by its member banks. The Federal Reserve Board lends money to the Treasury by printing federal reserve notes and selling them at face value.
As I write this article the national debt is $9 trillion (USD) and the interest is adding up by the minute. I must ask the trillion-dollar question: “Is the United States bankrupt?” The National Debt has continued to increase an average of $1.74 billion per day since September 28, 2007. Americans have mortgaged our social security system and retirements. Remember, Bin Laden said when Oil hit $140/barrel, it would break the backs of USA. Part of the rise is a weak dollar.
We cannot continue on the present course. A debt payment of $1 trillion (USD) per year can be better spent in many other areas, but until jobs stabilize and the dollar is stronger our present situation will continue to deteriorate. We cannot continue to bail out banks and mortgage companies. The government caused the problem with a lack of oversight and regulation, while a constant search for manufactured wealth and cash tapped the value of our homes. America went from a recession in 2000-2001 to near-bankruptcy by 2008. As we monitor the situation I put a debt calculator on this website – Mortgage Blues. However, the problem has grown well beyond the mortgage blues.