America faces a tidal wave of debt that threatens to destroy our economy and the U.S. dollar.
Without a sound dollar, there can be no long-term recovery. And unless we take immediate steps to restore balance to our country, we will inevitably commit one of the greatest financial sins of all: We will rob our children and our grandchildren of their future.
We will make them carry the onerous burden of our rampant spending and borrowing. We will make them toil for dollars that are worth pennies.
Our Sound Dollar Committee, founded a half century ago, is a grassroots movement of citizen-investors who are standing together to avert this disaster; and its mission — for fiscal integrity and a sound dollar — could not be more timely.
Please take a moment to find out more about the Sound Dollar Committee and join with me to return honesty to our economy.
The Greatest Fiscal Nightmare of All Time
In early February, the Obama administration’s Office of Budget and Management (OMB) calmly proposed the greatest fiscal nightmare of all time — a $1.6 trillion deficit for 2010, another $1.3 trillion in red ink for 2011, and continuing massive deficits until 2020.
In response, we promptly warned that there’s something even more disturbing than the OMB’s shocking deficits projections:
They are severely understated. They are predicated on aggressively optimistic assumptions about the economy that few outside of government believe likely.
And sure enough, in March, some of the truth began to come to light.
In its Preliminary Analysis of the President’s Budget Request for 2011, the nonpartisan Congressional Budget Office (CBO) made it blatantly clear that:
The administration underestimated future federal deficits — by $1.2 trillion.
Its view that federal deficits will fall below 4 percent of GDP by the middle of the decade is wishful thinking.
The deficits will start growing rapidly after 2015, forcing the Treasury to continue borrowing lavishly and sending the national debt soaring to 90 percent of the nation’s economy.
Unfortunately, however, even these new, uglier numbers from Congress suffer from deficiencies in their underlying assumptions. They assume:
No double-dip recession in 2010, 2011, or any other time in this decade — a scenario that a growing number economists consider unlikely.
No significant rise in unemployment benefit costs and no declines in corporate tax revenues — natural consequences of a weaker-than-expected economy.
No selling — or even reduced buying — of U.S. government debt by foreign creditors. And ...
No resulting spike in the government’s borrowing costs — a scenario that’s hard to imagine in the wake of the huge deficits already cited in their reports.
In sum …
Neither the White House nor Congress have adequately considered the real impact of the very deficits they themselves are projecting.
A never-ending wave of budget bombs is headed our way that will drive the total U.S. public debt load inexorably higher — from about $9.3 trillion in 2010 to $18.6 trillion by 2020. The cost of servicing all that debt is projected to more than quadruple from $188 billion to $840 billion!
Despite these dire facts, we can still turn things around. We can pull our nation out of this fiscal tail spin. But it will take real political courage real sacrifices. There is no easy way out. Without strong, proactive steps, we are on a collision course with financial catastrophe.
Right now, neither the majority nor minority party in Washington has the political courage to rise above partisan bickering and take the needed pro-active steps. This is why you and I must stand up and remind them that securing a balanced budget and a sound dollar is much more important than any election or political agenda.
It is for our children and our grandchildren. It’s for their future and the entire future of our country.
How the seed to save America was planted 50 years ago
What if you planted a seed ... and waited 50 years for the seed to grow and reach its full potential? What would you think about it? Would you be disappointed? Not if it was an oak, which can take as long as 50 years to produce its first crop of acorns! And not if that "seed" could make a difference for a nation as old as ours! Find out more.