There are those in this country who are extremely tired of the old rhetoric and have now justifiably consumed themselves with the proverbial bottom-line.
Truth-be-told, more and more people no longer care if the rising debt is the fault of Republicans or Democrats; whether the blame is due to the Bush tax cuts or the Obama stimulus.
There is one man, however, who is worried that Washington D.C.’s habit of spending today the money it hopes to collect tomorrow is getting completely out of hand.
Bill Gross, a founder of the investment giant Pimco, describes this dying economy closely to a Ponzi scheme even in a subtle way.
But when someone’s concerns move them to take action by selling their U.S. government bonds and then go and buy foreign bonds from Germany, France and Canada, others begin paying closer attention to how much higher the national debt will eventually go.
“In order to pay the interest and the bill when it comes due, we’ll simply have to issue more IOUs. That, to me, is Ponzi-like,” Gross has said. “It’s a game that can never be finished.”
Looking at this nation’s fiscal health, the national debt which now totals 9,377,204,236,563.68 as of January 13, 2011, is rapidly becoming a dominant political issue in Washington as well as across the country, and certainly not just among the “tea party” crowd.
However, the true accumulative debt actually comes to $14,007,216,975,377.59 when you add $4,630,012,738,813.91 in Intragovernmental Holdings to the public debt of nine plus trillion dollars.
It will no doubt take high-level bipartisan actions that must look for immediately ways to start reducing this massive deficit and move the country forward economically so to say.
Because at this point, there is no immediate solution according to St Louis home loan professionals that would prevent the national debt from ballooning to an unimaginable $20 trillion dollars in the next few years to come.
And let’s hope that there are no new recession-type hiccups, nor any new wars, military actions or financial crises on the horizon.
And what does the rest of the world think? Foreign investors seem to be nervous as regards doing business with America and showing this by charging higher interest rates when lending to this financially sick country.
When these rates go up and they will, the United States will have to borrow more and more simply to pay the interest on its debt.
Although some feel this may send this nation into a downward spiral as regards our already sinking economy, others feel this problem can and will be fixed thus nixing the Ponzi type comparison and eventuality.
Keep in mind that whenever a Ponzi scheme exists and then collapses it does so because there are no new sources of income or borrowers to be duped to pay off earlier investors.
The government, on the other hand, could possibly restore some fiscal sanity if and when these politicians choose to do so.
But the sad thing is, this nation’s cynicism and concern is still running rampant. In order to stop this runaway budget deficit, Washington must act now with equal goodwill. We shall watch this closely over the next few years.
When a consumer wants to know more about a St Louis home loan, they visit Floyd Tapia’s site on how to choose the best St Louis refinancing loan or principal reduction. Give Floyd a call at 314-334-0210.
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