Word out today says the national debt rose this month, for the first time ever, to over $13 trillion dollars.
Say it again: thirteen trillion dollars.
Yowza.
That's a lotta salami.
One analyst describes us as likely going into a "super debt cycle", where we continually owe more and more, due to interest rates and compounding debt.
Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.
“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”
Most of us have heard this before and it's surely getting a lot of coverage.
And we can agree that one day we have to take care of this, sure, absolutely. Further, we can agree that now would be a particularly bad time to attack the problem, what with the Great Recession we're plodding though.
But it seems there are at least three good--and easy and smart--things we could do about this, if only we get smart.
First, would it be so tough to, right now, do away with "earmarks" Congress creates? I wouldn't think so.
These are rather arbitrary costs we give ourselves, through these legislators.
Let's get rid of these things and the sooner the better.
And it could happen, we could get rid of them, if we make enough noise.
The second easy and intelligent thing I would think we could and should do would be to take away any and all tax breaks--whatever exists--for firms to take manufacturing offshore.
If that ever made sense, it surely doesn't now.
This would have two positive effects, too: First, it would raise income for the country, possibly. Sure, people and corporations would scream that it's a tax increase but so what? Why should we reward firms for producing elsewhere?
The other good effect is that it could, possibly, bring some manufacturing back home, here to the States, of course.
And what would be bad about that? More jobs, back here in our country. Who could be against that?
Finally, the third thing we could and should do for our country is put in place, as I've written before, a minimum 10% (or some figure) tax for any and all companies and corporations to pay, regardless of deductions.
This way, no matter what a corporation deducts, they would pay at least a small amount for access to this country's markets, infrastructure and all that entails.
No person or company should be able to operate in this country as a business and not pay any taxes. That makes no sense at all.
These 3 options seem simple, intelligent and beneficial for the country.
So my question is, do we not have the will, as a people and a country, to do even the most simple, obvious and, again, helpful things in order to start down a better and more intelligent path to fiscal responsibility?
I hope we do. I hope the answer is, yes, we do have that will.
Link to original post:
http://preview.bloomberg.com/news/2010-06-04/u-s-s-13-trillion-debt-poised-to-overtake-weigh-down-gdp-chart-of-day.html