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Huge Deficits May Alter U.S. Politics and Global Power – New York Times
Economically, we are apparently on our way out, barring some miracle. We are now so deeply in debt to China and other lenders, that there is no credible economic model which shows us “above water” until the mid-2020′s. Many economists feel we cannot ever fully recover as a result of our debt.
In an article entitled Huge Deficits May Alter U.S. Politics and Global Power there is a telling quote. Here is an excerpt:
“For Mr. Obama and his successors, the effect of those projections is clear: Unless miraculous growth, or miraculous political compromises, creates some unforeseen change over the next decade, there is virtually no room for new domestic initiatives for Mr. Obama or his successors. Beyond that lies the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade. As debt grew more rapidly than income, that country’s influence around the world eroded.
Or, as Mr. Obama’s chief economic adviser, Lawrence H. Summers, used to ask before he entered government a year ago, “How long can the world’s biggest borrower remain the world’s biggest power?”
The Chinese leadership, which is lending much of the money to finance the American government’s spending, and which asked pointed questions about Mr. Obama’s budget when members visited Washington last summer, says it thinks the long-term answer to Mr. Summers’s question is self-evident. The Europeans will also tell you that this is a big worry about the next decade.”
We borrowed and spent ourselves into something that will soon look like an ever weakening irrelevance. Huge defense budgets over decades starting with the Eisenhower years, intensifying under Reagan and continuing under Obama have sent us to the poor house. Sixty years of huge defense budgets have robbed us of a future.
You see? We really cannot war ourselves into prosperity. Stand by for big changes in the way we live.
CWO3 Tom Barnes, USCG (Ret.)
Short URL: http://www.veteranstoday.com/?p=13142
Posted by Veterans Today on Feb 2 2010, Filed under Economy. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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“Stand by for big changes in the way we live.”
Tom Barnes, your life is really going to change when you become a minority in the USA!
The whole Monetary system is a scam….man made scam perpetrated on the world by unknowns to control slaves. Us the slaves, them the masters. Until there is a common will to make change, there will be no change….yes we have a global village now … a dieing global village….
It’s true that Democrats make tax and spend presidents. What’s equally true is that Republicans cut back on taxes. What’s never mentioned by Republicans though is how Republicans always spend, spend, spend. So under every Republican administration, the deficit goes through the roof. Then, under Democratic administrations, the budget goes back to surplus. Reagan+Bush1: huge deficit. Clinton: surplus. Bush2: huge deficit.
And it just always amazes me how the republicans are always there whining about the deficit, when they are always the ones who created it. How does that work in Republican minds?
When it comes to fiscal responsibility, the track record of the last 30 years plainly points to Republicans: grossly irresponsible. Democrats: responsible, AND saddled with cleaning up Republican messes, AND magically blamed for Republican messes, by Republicans.
Hypocrisy much?
Stephanie Mcnealy