Let’s go through the current debate about raising the debt ceiling and get to a simple solution….
First, here is how much we’ve spent over the past several years:
2008 – $2.9 Trillion
2009 – $3.1 Trillion
2010 – $3.55 Trillion
2011 – $3.83 Trillion
- In 2008, we spent the $2.9 Trillion, but only took in about $2.66 Trillion. So we were left with around a $240 Billion deficit.
- In 2009 it was more of the same. We spent $3.1 Trillion, but only took in abbot $2.7 Trillion. Result? $400 Billion deficit.
- 2010 comes along and thanks to Obama’s fixation on spending, we had a $1.42 Trillion deficit.
In order to pay for these accumulated deficits, we have to borrow money. So the government issues Treasury Bonds. Investors, often countries, buy these bonds that come with a promise that they’ll be repaid, with interest. This is the national debt.
To meet our obligations, we have to pay bond holders the interest they’re owed. This is called “servicing the debt.”
As long as we pay the interest on our debt, we will not default.
The interest on the debt is only a small portion of total receipts. For example, in 2009, interest on the debt was $260 Billion. The rest of the $2.8 Trillion dollars in the budget was spent on all the departments and programs in the US government.
The problem is that Obama refuses to cut back on any of the departments and programs.
We could easily pay the interest on the debt, preventing default. We would just have to take the money to do so out of the programs, agencies and departments of the government.
Obama refuses to do this.
Obama increased the budget deficit by almost $1 Trllion. IN ONE YEAR. And he doesn’t think he can find the cuts to pay the debt service.
Obama is the villain here. He wants to grow the government at all cost, and for the sole purpose of gaining and wielding power.
And here’s the kicker: The federal government is sitting on some $700 Billion. The government has doled out $700 Billion that agencies and departments have not spent. The money is sitting there, doing nothing.
- Take the $700 Billion, use it solely to service the debt.
- Cut $1 Trillion from the budget THIS year.
- Leave the debt ceiling alone.