"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27,2010


Thursday, March 31, 2011

The Deficit Trials

In 1986, an American company, WR Grace, prepared a TV ad dealing with their concern over America’s growing level of debt. The ad was not shown. The networks deemed it to be too controversial. Now that simple statement is worthy of several essays alone. But we, today, want you to just click on that ad and see the future as those with a foundation in fundamentals saw it so clearly, 25 years ago:

 http://www.youtube.com/watch?v=AiBCRQL58_k

In case you're wondering. "What was the US debt in 1986 when the ad was made?"  The debt of the United States as of September 30, 1986:  $2.125 trillion.  Today, it is $14.216 trillion. An almost seven fold increase in 25 years.

We know that many Americans are concerned about the US debt but have no idea what to do about it.  Frankly, we don't really have to do anything about it.  We can just let it keep rising at this geometric pace and all will occur in accord with our simple formula: deficits = debt = destruction. 

The snake oil being sold to all of us by the likes of Greenspan, Bernanke, Krugman and Geithner has been well documented on these pages.  Will any of this matter to them?  Of course not.  It will only matter to our grandchildren, just as presented in the WR Grace video twenty five years ago.

In 200+ years the debt of the US grew to $2 trillion.  Resulting in massive devaluation of the purchasing power of the dollar (please click on "Purchasing Power of Dollar" in Key Statistics section at right.)  In the past 25 years the debt has grown by $12 trillion.  What do we have to show for $12 trillion that we could not have done without?   We owe our grandchildren an answer to that question.

Watch the children in the video.  Detroit is their future. 

Never in the history of our world has a generation of entitled people been so selfish.

4 comments:

Anonymous said...

I found the information informative and interesting. Obviously much research has been done on this subject. It makes individuals realize that we must all take responsibility for the welfare of our country. We must be willing to take the hardships when necessary to preserve the future. We must do whats necessary to make the president and congress stay focus on the important issues of the day and forget about politics.
We live in a great and wonderful country, please let us all work together to keep it this way.

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