US Action News

Yes, things really are that bad. The mainstream media has been really busy downplaying the economic impact of the disaster in Japan and the chaos in the Middle East, but the truth is that these events have huge implications for the global economy.

If interest rates were modified to reflect the average rates in the 1980s, in 2021, our interest payments would nearly triple from CBO’s projection of $749 billion to $2.0 trillion. Accumulated interest payments over this period would double from their current projected level of $5.7 trillion dollars to $11.0 trillion dollars.

Debt held by the public would breach 77 percent in 2013, 80 percent in 2016, and reach 87 percent of GDP by 2021. These facts remind us that debt is simply a symptom of over-spending; spending cuts, not budget gimmicks, will be required to quash it.

It will be a mistake to waste our time or effort in another futile attempt to lobby Congress, the Courts, the President or the national party leadership of either party. Most have shown their willingness to sacrifice principle, integrity and our future in the recent bailouts and the legislation just passed during the Lame Duck session of Congress.

The stark choice between the path we are on – “Debt Ruin” – and the better way of “American Exceptionalism.” Ryan describes this choice clearly and effectively.

Niall Ferguson provides a talk in which he states that “Alarm Bells Should Be Ringing in Washington, DC.” If you want to get a comprehensive view of where we are, especially in the context of history, this is a MUST WATCH!

The $13.9 trillion national debt is creeping closer to its $14.3 trillion ceiling, and a vote to increase that limit is expected in the spring.

We are giving the next generation crushing tax rates and a burden of debt that they cannot sustain themselves. The government will have to take double out of every dollar earned by our children just to pay for this government.

Each new dollar of debt was accompanied by a net reduction in GDP. In fact, at year-end, each new dollar of debt subtracted 45 cents from GDP (source: U.S. Treasury Z1 Flow of Funds report, 3/11/10). Remember this the next time you hear some economist claiming that Uncle Sam should run even larger deficits to “stimulate” the economy.

by Sen. Jim DeMint – Death by debt isn’t only a Greek tragedy, it’s downright common. Powerful nations all the way from Rome to Russia have killed their economies by spending more than they had. And, if the American people don’t stage an intervention soon, the United States may do the same.