Thomas Jefferson so famously said, “When governments fear the people, there is liberty. When the people fear the government, there is tyranny.”
There has never been a more precarious time in the evolution of our nation then there is today. Everywhere we look there is more and more government intrusion in our daily lives. This is approaching tyranny. Our representatives are deaf to our wishes. Do fathers, mothers, grandparents want their children and grandchildren to inherit, not prosperous inheritances, but debt no government in this world will ever be able to repay. And, where does that lead us to?
Our debt is currently almost $16 T. See Federal Budget. In the last four years we have paid out almost $1.7 T in interest payments. See Interest Payments. We are increasing the debt at about $1.5 T per year. Our revenues are somewhere around $2.0 T per year. So at what debt level does every collected dollar go to debt payments? Here is the math. If we use a 3% cost of borrowing, we need to know what $3% of what number totally eats up the $2.0 T of revenue. Keep in mind we are only paying the interest. We are not reducing the principal as most of us are doing with our house payment. So, .03 times X equals $2.0 T. The answer is $66 T. If we are at $16 T today, we are completely broke in 2055. By the way, this is optimistic. Our demise will likely occur much sooner as you don’t have to be completely broke to be broken. I believe in less than ten years we will be experiencing “Greeklike” problems.
Think about what will be happening along the way. Today the treasury pays $454 B in interest of the $2 T we take in. As time passes and more debt piles up the $454 B goes up and deprives all the other programs of needed funds. How about our security, social security, medicare, education of our children…
Our payments to China for the treasuries they own, fund their military. If that does not scare you, I don’t know what fact will.
Just take a second to look at the two web links above and decide to participate. Do you want Liberty or Tyranny? Fortunately we live in a country where we actually have a choice.
Get involved and be sure to vote.
Oh, and Real Estate in Prescott, we are seeing fewer price changes downward. The weather here has been nothing short of sensational. In the last week, Christmas to today, we have been sunny and in the middle to high sixties.