A real look at America’s debt problem – from Implosion by Joel Rosenberg

Chapter 9 (The Financial Implosion Scenario) from Implosion by Joel Rosenberg really opened my eyes to where our country is not only headed, but where it has been heading. As you read some copy from the book that I’ve highlighted below, you’ll see that this debt issue started before President Obama reached office. You’ll also see that he and his office haven’t done much at all to slow it down. They’ve actually sent us into the spiral at a faster pace than we were at when he was elected.

I am sharing this after watching my first telelvision in quite a while (thanks to the Olympics). You’re probably watching them as well, and seeing more commercials from the POTUS, hearing him tell you things will be different and that he has some ideas about trimming our debt. Not a shocker!

Choices (and I believe circumstances of the world getting closer to entire chaos and a need for the return of Christ) that the two past presidents have made have hurt this country, and I pray for our current and future president(s) as they do what they can to turn things around. At the moment, I’m not so sure voting for any individual on the ballot is capable of getting us out of this mess. I’m sure many others are thinking the same. Enjoy the notes – and be sure to grab this great book!

see page (139)
By the time he (President George W. Bush) left the White house after the 2008 elections, the federal debt had risen 71 percent to $5.8 trillion.

(see pages 139-140)
In 2006, for example, Senator Obama refused to vote in favor of raising the debt ceiling to permit the federal government to borrow more money. “The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” Obama said. “It is a sign that the U.S. government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies….Increasing America’s debt weakens us domestically and internationally. Leadership means that the buck stops here.’ Instead, Washington is shifting the burden of bad choices onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

(see page 140)

Upon taking the oath of office, however, President Obama abandoned all pretense of opposing massive deficits, debt, and borrowing. In a series of moves that stunned and rattled the nation, President Obama nearly tripled the national debt in just his first three years in office.

  • The federal debt stood at $5.8 trillion at the end of 2008.
  • The federal debt hit a record $15.11 trillion on December 1, 2011.
  • In 2011, our debt-to-GDP ratio was a staggering 100 percent – that is, in 2011 the United States owed as much money as our entire national economic output was in 2010.
  • The national debt grew about $3 million a minute in 2011.

(see page 144)
Social Security was originally created in the 1930s with the idea that many workers would help pay for relatively few retirees, but that is no longer the case. In 1945, an average of 41.9 workers paid taxes to cover the benefits of every retiree. By 1980, there was an average of only 3.2 workers paying taxes to cover the benefits of every retiree. By 2020, only 2.4 workers will be paying payroll taxes to cover the benefits of each retiree.

How did this happen? First, as Americans became wealthier, they generally stopped having as many children as they did in the early-to mid-1900s. This meant that there were now fewer children growing up, becoming educated, and becoming productive workers who were able to pay taxes to adequately cover the benefits of their parents and grandparents. Second, Americans have aborted more than 53 million children since 1973. As morally unconscionable as abortion is in its own right–the abortion issue is also coming back to haunt the economy in ways its proponents likely did not anticipate.

Visit Joel’s site and blog online.

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