500th Post Revisited
Yes, I started this with the salutation of "friends". More about that in a moment...
About ten posts ago I promised that my 500th entry was going to be special. I couldn't decide whether it was going to be funny, or I'd spend an inordinate amount of time trying to get that "unique" photo, or what; I just wanted something special. Unfortunately, for reasons that will go without mention, I've been in a bit of a funk, and the 500th was no barn burner. Anyway, I've put a lot of thought into this, and I decided to uncork on the one subject I'd want to discuss with my close friends - that of our nation's economy. Yup, this is going to be one of those rare ones that doesn't involve birds; this will be one of our "coffee-table" chats. Now, take a look at the fellow below...
Cute little guy - he's just a few weeks old, but what does his future look like? In a word, his future looks "challenging", and here's why...
When you watch the news, all the talking heads and politicians will tell you that our national debt is around $12 trillion. At the same time, our gross domestic product (value of all goods and services and aka GDP) is around $14 trillion. But the story goes much, much further.
Our debt doesn't reflect the obligations of Social Security, Medicare, and Medicaid. Those costs dwarf our debt to the tune of at least $70 trillion. Check out David Walker below and keep in mind his credentials...
As if Mr. Walker wasn't frightening enough, that report was created back in the Bush era... After TARP, President Obama's Stimulus Bill, and who knows what, the total debt is mind numbing. Check out the U.S. National Debt Clock. Note at the bottom our total assets and unfunded liabilities. In short we owe more than we are worth, and unlike a citizen, the government can't sell off its property to make money to ease the situation. Typically, governments can only create money in one of five ways:
- Make war and take the other country's goods... (Not gonna happen...)
- Enter into some sort of profitable endeavor like Amtrak... (That didn't work out so well...)
- Borrow money... (We already owe China and Japan alone almost $2 trillion)
- Print money... (Inflation...)
- Tax... (To quote Nancy Pelosi speaking about President Obama, "There are a number of things he was for on the campaign trail,")
Well, there go friend... My best analysis... And a word to the wise...
See you by the feeders,
CapeCodAlan
Cornell Ornithology Laboratory: Inside Birding
Cornell Ornithology Laboratory: All About Birding
