US Economy: What’s At the End of the Road?

Thanksgiving Day
November 26, 2015 AD/14 Kislev 5776

Drive Across American History (of debt)

Mile Marker Zero our nation’s financial journey stands at July 4, 1776 when our forefathers declaredmile marker zero independence from Great Britain. The French government and Dutch bankers (chiefly the French government) negotiated loans through the agency of Benjamin Franklin and John Adams. By the end of the revolutionary war, U.S. debt amounted to $2,000,000 (million). Let’s call this era mile marker zero in our nation’s financial history.

Over the years, U.S. dollars became the world’s reserve currency, the “gold standard” for international money. Merchants price everything traded on the high seas and across geographical borders in terms of this reserve currency.

Over intervening years, we have fought numerous wars on borrowed dollars. Such was the case with the War of 1812 through the Great Civil War, WW1, WW2 – all the way to our present middle east conflicts.

In October 2005, 229 years after the founding of this country, the national debt had grown to $8,000,000,000,000 (trillion).

The day Barack Obama took the oath of office on January 20, 2009,  U.S. national Debt was at mile marker 229astounding $10,626,877,048,913.08. The National debt has effectively doubled since his first day in office.

Today, November 26, 2015, passing mile marker 229 of American history, we presently have a whopping national debt of $18,703,974,322,714.00 (trillion).

Our ‘journey’ hasn’t ended. All we know is this presidency comes to a screeching halt at mile marker 231. What will be our situation then?

Present Reality

Look at the following chart. What does it tell us? Click on the below image for a full-size view.

Wall Street Journal: Falling Corporate Profits Blur U.S. Growth Outlook
Wall Street Journal: Falling Corporate Profits Blur U.S. Growth Outlook

Economic cycles are facts of history. They are governed by principles laid out in the Bible thousands of years ago. Can we recover from another Great Depression?

Taxation moves money from private hands to government. The natural outcome of higher taxation is lower productivity. Lower productivity then yields lower government revenue. Politicians then raise taxes to continue wasteful spending and the cycle continues until there is no more money. Period.

Tax increases don’t eliminate deficits; they increase government spending.” – President Ronald Reagan, Dec. 10, 1981, The Reagan Diaries, page 54

What To Do?

Government is big. Too big. Obama has transformed the IRS, BLM, EPA, DOE, FCC, NOAA, NASA and other ‘alphabet soup’ agencies into his personal propaganda ministries whereby he abuses his constitutional limited authority in unlimited ways to strangle the American economy.

Let’s demand our congressional delegations defund the ‘soup’ and return administration of road sign dead endgovernment to the states, as per the Tenth and Ninth Amendments. If we do not shrink the size of government, America will soon come to the last road sign: DEAD END.

Communicate Your Wishes To Congress

Senator John Cornyn – http://www.cornyn.senate.gov/public/index.cfm?p=ContactForm

Senator Ted Cruz – http://www.cruz.senate.gov/?p=email_senator

Representative John Ratcliffe – https://ratcliffe.house.gov/contact

John White
Rockwall, Texas

 

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