Blog Archives
Rising national debt may be the next economic crisis
USA TODAY
By Tom Raum
The country first got into debt to help pay for the Revolutionary War. Growing ever since, the debt stands today at a staggering $11.4 trillion – equivalent to about $37,000 for each and every American. And it’s expanding by over $1 trillion a year.
The mountain of debt easily could become the next full-fledged economic crisis without firm action from Washington, economists of all stripes warn.
“Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,” Federal Reserve Chairman Ben Bernanke recently told Congress.
Higher taxes, or reduced federal benefits and services – or a combination of both – may be the inevitable consequences.
The debt is complicating efforts by President Obama and Congress to cope with the worst recession in decades as stimulus and bailout spending combine with lower tax revenues to widen the gap.
Interest payments on the debt alone cost $452 billion last year – the largest federal spending category after Medicare-Medicaid, Social Security and defense. It’s quickly crowding out all other government spending. And the Treasury is finding it harder to find new lenders.
The United States went into the red the first time in 1790 when it assumed $75 million in the war debts of the Continental Congress.
Alexander Hamilton, the first treasury secretary, said, “A national debt, if not excessive, will be to us a national blessing.”
Some blessing.
Since then, the nation has only been free of debt once, in 1834-1835.
The national debt has expanded during times of war and usually contracted in times of peace, while staying on a generally upward trajectory. Over the past several decades, it has climbed sharply – except for a respite from 1998 to 2000, when there were annual budget surpluses, reflecting in large part what turned out to be an overheated economy.
The debt soared with the wars in Iraq and Afghanistan and economic stimulus spending under President George W. Bush and now Obama.
The odometer-style “debt clock” near Times Square – put in place in 1989 when the debt was a mere $2.7 trillion – ran out of numbers and had to be shut down when the debt surged past $10 trillion in 2008.
The clock has since been refurbished so higher numbers fit. There are several debt clocks on websites maintained by public interest groups that let you watch hundreds, thousands, millions zip by in a matter of seconds.
The debt gap is “something that keeps me awake at night,” Obama says.
He pledged to cut the budget “deficit” roughly in half by the end of his first term. But “deficit” just means the difference between government receipts and spending in a single budget year.
This year’s deficit is now estimated at about $1.85 trillion.
Deficits don’t reflect holdover indebtedness from previous years. Some spending items – such as emergency appropriations bills and receipts in the Social Security program – aren’t included, either, although they are part of the national debt.
The national debt is a broader, and more telling, way to look at the government’s balance sheets than glancing at deficits.
According to the Treasury Department, which updates the number “to the penny” every few days, the national debt was $11,518,472,742,288 on Wednesday.
The overall debt is now slightly over 80% of the annual output of the entire U.S. economy, as measured by the gross domestic product.
By historical standards, it’s not proportionately as high as during World War II, when it briefly rose to 120% of GDP. But it’s still a huge liability.
Also, the United States is not the only nation struggling under a huge national debt. Among major countries, Japan, Italy, India, France, Germany and Canada have comparable debts as percentages of their GDPs.
Where does the government borrow all this money from?
The debt is largely financed by the sale of Treasury bonds and bills. Even today, amid global economic turmoil, those still are seen as one of the world’s safest investments.
That’s one of the rare upsides of U.S. government borrowing.
Treasury securities are suitable for individual investors and popular with other countries, especially China, Japan and the Persian Gulf oil exporters, the three top foreign holders of U.S. debt.
But as the U.S. spends trillions to stabilize the recession-wracked economy, helping to force down the value of the dollar, the securities become less attractive as investments. Some major foreign lenders are already paring back on their purchases of U.S. bonds and other securities.
And if major holders of U.S. debt were to flee, it would send shock waves through the global economy – and sharply force up U.S. interest rates.
As time goes by, demographics suggest things will get worse before they get better, even after the recession ends, as more baby boomers retire and begin collecting Social Security and Medicare benefits.
While the president remains personally popular, polls show there is rising public concern over his handling of the economy and the government’s mushrooming debt – and what it might mean for future generations.
If things can’t be turned around, including establishing a more efficient health care system, “We are on an utterly unsustainable fiscal course,” said the White House budget director, Peter Orszag.
Some budget-restraint activists claim even the debt understates the nation’s true liabilities.
The Peter G. Peterson Foundation, established by a former commerce secretary and investment banker, argues that the $11.4 trillion debt figures does not take into account roughly $45 trillion in unlisted liabilities and unfunded retirement and health care commitments.
That would put the nation’s full obligations at $56 trillion, or roughly $184,000 per American, according to this calculation.
Islamic Radicals Joining U.S. Military
Nov 7
Posted by Chris Thomas
WND
“Muslims should stand up and fight the aggressor.” That’s what Army Maj. Nidal Malik Hasan said about America before he and possibly other Muslim soldiers at Fort Hood shot 43 fellow soldiers, killing 12, who were returning from Iraq and Afghanistan.
“He said Muslims had a right to attack” the U.S., said Col. Terry Lee, who worked with Hasan at the Texas post, where the devout Sunni Muslim refused deployment. “He said Muslims shouldn’t be fighting Muslims,” he added. “He was very clear on that.”
Shockingly, a growing number of other Muslim American soldiers as well as civilian contractors have put their religion before their duty. Some like Hasan have killed, or tried to kill, their fellow soldiers. Others have infiltrated the military in order to undermine it and aid and comfort the enemy.
According to an explosive new book, “Muslim Mafia: Inside the Secret Underworld That’s Conspiring to Islamize America,” Hasan is just the tip of a jihadist Fifth Column operating within the ranks of the U.S. military – which is too blinded by political correctness to see the threat.
It’s here now: Jihad in America! $4.95 today only! Save $15 on new DVD from makers of ‘Obsession’
Quoting from a classified military briefing, “Muslim Mafia” reveals that this Fifth Column has penetrated “every branch of the U.S. military.” The Islamist enemy has even infiltrated the al-Qaida detention camp at Guantanamo Bay, Cuba.
Security officials at Gitmo have been investigating a possible new spy ring involving several “dirty” Arabic linguists who are accused among other things of:
More than 75 former Gitmo detainees have returned to the battlefield or anti-American jihad. Some met with the suspect Muslim translators. Others were privately counseled by chaplains also under investigation for security breaches.
Gitmo security officials recently met with FBI agents in Philadelphia to aid their investigation into one of the Muslim linguists under contract at Gitmo, according to sources quoted in the book who are familiar with the investigation.
They also this summer briefed members of Congress about the prison camp’s internal security breaches, according to “Muslim Mafia,” which is co-authored by former federal agent P. David Gaubatz and investigative journalist Paul Sperry, author of “Infiltration: How Muslim Spies and Subversives Have Penetrated Washington,” which is being used by law enforcement and the military.
“Three years of investigations have revealed the presence of pro-jihad/anti-Western activities among the civilian contractor and military linguist population serving Joint Task Force Guantanamo,” states a copy of the classified Gitmo briefing, which was prepared in May 2009 for the FBI and CIA, as well as the congressional intelligence committees.
The report explains that dirty Arabic linguists have gathered classified data involving detainees, interrogations and security operations in an effort to “disrupt” Gitmo operations and U.S. “intelligence-collection capabilities.”
It goes on to specifically finger the Muslim Brotherhood, which it calls a terrorist group, in the conspiracy. The Muslim Brotherhood and its U.S. operations and front groups are the subject of “Muslim Mafia.”
“These actions are deliberate, carefully planned, global, and to the benefit of the detainees and multiple terrorist organizations, to include al-Qaida and Muslim Brotherhood,” the briefing states, according to the bestselling book.
The enemy infiltration is not limited to Guantanamo.
The report strongly suggests that Islamist spies have penetrated nearly every sensitive U.S. security agency involved in the war on terror, potentially compromising intelligence government-wide.
“Persons participating in this activity move regularly between multiple contracting companies, various intelligence agencies in the U.S. government [FBI, CIA, DIA, NSA, etc.], and every branch of the U.S. military.”
The investigation comes on the heels of a major Muslim espionage ring that the FBI broke up at Gitmo in 2004.
A former Army Muslim chaplain was charged with espionage, mishandling classified documents, and lying to investigators, and served hard time in the stockade. Two of his Muslim brothers at Gitmo, both Arabic interpreters, were convicted of stealing or mishandling classified documents.
Hasan, the alleged Fort Hood terrorist, is a U.S. citizen whose Palestinian parents emigrated from the West Bank.
Col. Lee said Hasan complained about the wars in Iraq and Afghanistan. He had hoped President Obama would quickly end them, but when they “didn’t come to a quick end, he got more agitated.”
This summer, Lee says he overheard Hasan praise the Muslim who shot two soldiers at a military recruiting station in Little Rock, Ark.
“He was happy” about it, Lee said in an interview with Fox News. “He said ‘Maybe we should have more of these people. Maybe people should strap [on] bombs and go into town squares.’”
There are some 40 Muslims at Fort Hood, and an estimated 15,000 Muslims serving throughout the U.S. armed forces.
The Council on American-Islamic Relations cautioned against a rush to judgment about the shooter’s motives.
“The motive of the attacker is not yet known,” insisted CAIR Executive Director Nihad Awad. (The FBI recently cut off ties to the Washington-based group after identifying it as a front group for Hamas terrorists in the largest terror finance case in U.S. history. CAIR and its founding chairman were named unindicted terrorist co-conspirators in the case.)
But other current and former Muslims, who oppose CAIR and dispute its claims to representing American Muslims, say the shooter’s motive is clear: violent jihad in the name of radical Islam.
“America needs to awaken from its sleep and its unwillingness to face the issue of fundamentalist Islam in our midst which undoubtedly is the cause of the tragedy in Fort Hood,” said Walid Shoebat, a former Islamist terrorist.
“Some very serious decisions need to [be] made when it comes to having Muslims protecting our country, as it is impossible to know whether they may be honorable or foxes in the hen house.”
Posted in Entertainment, Family, Latest News, Life, News, Politics, Religion
2 Comments
Tags: Barack Obama, Breaking News, Commentary, Democrats, Entertainment, Faith, Family, FBI, Federal Bureau of Investigation, Federal government of the United States, Fort Hood, Homosexuality, iran, Islam, Jerusalem, Latest News, Life, News, Palestine, Palestinian, Palestinian terrorist, Politics, PRESIDENT OBAMA, Religion, U.S. GOVERNMENT, UNITED STATES, United States armed forces, United States Army