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Wednesday, March 7, 2012

Where and when will U.S. leaders face our financial reality

March 4, 2012

America's financial reality?

We are broke, at least we are if you define “broke” as having a boatload of debt and having to borrow over a third of what we spend each year. To make it even worse, our unfunded future entitlements make the current debt look like chump change. The following numbers were taken from www.usdebtclock.org. (Check it out for yourself).

2012: U.S. National debt now stands at $15 trillion+

2012 federal spending                          $ 3.6 trillion
2012 revenues (mainly taxes)                   2.3 trillion
2012 deficit (borrowed funds)               $1.3 trillion

This pitiful financial condition has resulted from decades of continuing failed leadership from both parties. Meanwhile what are the vast majority of our federally elected officials doing to face these challenges...they are running for election full time...and practicing politics as usual. They don't have time to even consider collaborating to develop strategies to help our nation face its many challenges. They are literally and figuratively giving we the people the infamous middle finger signal. We complain, but they know that we don't have the collective courage to actually do anything about it. They know from past experience that we will just keep re-electing them no matter how much evidence exists about their collective failures. Instead of us uniting as Americans first, too many of us remain divided and stranded by party labels that contain nothing more than empty promises. It's easy for any reasonable person to see that cuts will have to be made, and the categories most affected will be among the following. Look at the following and reach your own conclusions regarding exactly where the cuts should begin.

Largest U.S. 2012 budget items:

Medicare/Medicaid                             $ 830 billion
Social Security                                      727 billion
Defense/wars                                        700 billion
Income security                                    404 billion
Interest on debt                                    222 billion
Federal pensions                                  216 billion
Total of these items                         $3.099 trillion = 86% federal spending

Then add to our financial problems the unfunded liabilities for future entitlements:

Social Security                                $15.5 trillion
Prescription drugs                             20.4 trillion
Medicare 81.3 trillion
Total unfunded:                               $117 trillion with a “T”

None of the above considers the additional levels of local, state, and even personal debt that our nation and citizens must find ways to deal with. What do you think? Can we afford to even consider allowing politics as usual to continue?

What we desperately need is visionary, courageous, and unifying leadership that will openly acknowledge these truths and then begin to immediately focus on the drastic actions that must be taken if we are to save our nation from a future of complete and utter ruin. And folks, the future is now. What we as citizens must do is to signal our understanding and acceptance of the grim reality that was caused by the failure of our elected leaders in Washington. We know that we can expect little real leadership from our elected in either party. That means that we will have to collectively unite to lead from the bottom. Too many of us have continued to stay loyal to our chosen party and they have both kept practicing politics as usual. They did what they have always done, spend our money completely recklessly, mainly for the benefits of the powerful special interests, and to buy votes. One important question to be answered is; how will the majority of our citizens respond when they finally realize that we will all have to share massively increased taxes, smaller retirement benefits and reduced health care services? Unfortunately, I'm afraid, the majority of us will allow future generations to face the music rather than accept personal sacrifice today. I hope I'm proven wrong...but actions will speak louder than words.


These are my opinions. What do you think?

Mike Tower
Hendersonville, NC






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