The US Debt Clock - 16 Trillion Dollars today

Malcolm - feel free to lose sleep with me anyway - it will certainly impact your local real estate market. 

Thanks for stopping by.

Hi Dale - it is a complex problem.  I am not sure how a gold standard works in this day and age.  Even if we back up our currency with gold, currency is a small part of our M1 money supply with the greater emphasis on demand deposits.  I had the notes of my next blog of today, but you have wandered into my sights, so I may give you more than you asked for in your comment.  

While I favor a balanced budget, I oppose a balanced budget amendment because I believe it would only give cover to those who want to raise taxes.  

The problem, in my view is spending, taxing and spending, borrowing and spending and more spending. That is where the rubber meets the road, in my view. And so far, I do not see the courage in Congress to really address the tough questions.  I have watched Paul Ryan for more than four years.  My first blog about Ryan was four years ago <link>. He still shines - and for the same reasons.  If Romney and Ryan do not have all the answers yet - at least they seem to be asking the right questions.  That is more than the Dems can say, in my view. 

Initially we need tax reform and true spending cuts.  They can complain all they want about tax cuts for the wealthy - but I am talking about tax cuts for those who pay taxes.  And that one per cent you keep hearing about pays 40% of our tax bill.  I can't help the 50% of us that pay no taxes with tax reform.  But I can help those folks with jobs and improved economic conditions.  

There may come a time where raising taxes will be necessary to meet the demands of our commitments.  But first we start the economy with tax reforms which lower all rates but close most of the special interest loop holes. We can then make rate changes for the benefit of all rate payers while still being revenue neutral with the changes. Eliminate regulations that do not favor economic growth and eliminate capital gains and corporate taxes (or at least give significant credits for investment).  The economy moving again will increase revenue and put more workers back on the tax rolls.  

Increased revenues from productivity and spending cuts can eliminate the deficit in the short term.  Then there may be a need for a surtax or value added tax that may be targeted at reducing the debt itself.  But raising taxes in the teeth of this economy and failing to cut spending is foolish and mirrors the policies of this Administration.

In my view, the debt is the most serious issue to face our nation.  Jobs represent the best first steps to beginning to find a solution to the debt.  They are related.  But we must keep our collective eye on the goal - stop spending money we do not have and reduce the debt that will strangle us as a nation.  

That is my opinion based upon my study, my observations, my analysis and my experience. My view of history is that the American economy with the freedom for Americans to reach for a better day is the most inclusive and remarkable wealth creation machine in the history of the world.  But our government with its corruptions in both parties has gotten in the way.  By definition, the government does not know better than "We the People" how to solve our problems.  It is true that we did not take care of the least among us.  The sick need care and the poor need opportunity.  But I am not sure that government is the answer to those problems.  

We will never know what George Bush (43) could have accomplished in the absence of the attackd of 9/11/01.  The wars distracted the administration and siphoned off much of the productive capacity of the nation.  Barack Obama came to office with great expectations that were beyond the achievment of mere mortals.  Mr Obama tapped into the fears and discontents of the nation by focusing on Mr Bush who was not a candidate.  But in the end, it seems to me that he had great questions but was short on answers.  He was ideology driven, surrounded by ideologues and eventually forgot that the other 50% of the country was still in the room.  By his refusal to accomodate and compromise, he squandered his potential and his political capital. in my opinion.  

I hope that Mr Romney will be our next President through the process of election.  And I hope that his choice of wizkid Paul Ryan means that Mr Romney will draw on the young shining lights of both parties to heal the divide and use the talents of all of us to reach a peace in what has become the 2nd American Civil War and to revive the promise of the Declaration of Independence and the Constitution to right the ship and move us toward the third American Century. 

We have such possibilities, you and I.

An insignificant item, but representative, would be the white house staff (senior staff, I assume) that received salary increases in the range of 40% while the country was suffering about a year and a half ago.

When we are borrowing 42% of every dollar we spend from people who don't like us, it is appalling to me that the President cannot show enough concern and leadership to get a budget through congress while he is in office so that the nation can discuss spending priorities.

My measure is not how much spending - but how much borrowing. 

It sounds like I may want to do a post on this.  Karl, fell free to email me with any links you want me to look at.  I have seen articles which indicate that spending increases are not as high as assumed, so I will dig a little deeper - and we will talk again - soon