Major nations were brought to their knees when their economies unraveled. More than any constitutional crises, war, plague or immigrants at the borders, when massive debt is the central pillar of a nation’s economy its very survival is in jeopardy.
When nations engage in the political quick fix of borrowing to cover their budget deficits (defined as monetizing the debt), the results have been catastrophic.
Without the leadership and determination to grow our economy, enforce balanced budgets, an end the shortsighted policy of bonding out our budget deficits, the enormous national debt will only keep increasing. Government tax revenues will be offset by ballooning debt service payments that divert money away from education, Medicaid, and national defense. A desperate government will then look to run their printing presses at the Mint 24/7 to cover the shortages and hyperinflation will begin to devour our life savings. It is a threat as serious as the Great Depression.
Against the backdrop of venomous presidential primary races and fierce partisan warfare over the next Supreme Court nominee it is time for a remedial history lesson for America’s White House hopefuls.
The past repeatedly reminds us that major nations were brought to their knees when their economies unraveled. More than any constitutional crises, war, plague or immigrants at the borders, when massive debt is the central pillar of a nation’s economy its very survival is in jeopardy. Yet over the past decade here in America our political leaders have failed to grow our economy, borrowed to support wasteful programs, and thrown dollars at problems rather than make the difficult policy decisions required. As a result, our national debt has grown from $8.5 trillion in fiscal year 2006 to over $19 trillion today, an unsustainable debt that places our nation at risk to an historic financial meltdown.
