
During my recent bout with severe sinusitis, I decided to rent a whole bunch of movies through Netflix. One of them was I.O.U.S.A. It's a documentary detailing the history of the national debt of the United States of America, explaining why it continues to grow, and what the reprecussions are. After watching the documentary, I think I am more scared of this than anything the global warming super-activists can throw out there.
The bottom line is this - the United States is headed to bankruptcy. I know that sounds like some Bill O'Reilly talking point, but it's true. We have turned from a nation that produces goods we consume to a nation that consumes and doesn't produce. This in turn has lead to a major trade imbalance, one major component of the national debt. Furthermore, the national savings rate is currently negative and has been on average negative for decades (there was a time of positive savings in the 1950s and then I believe again in the 1980s). Folks, we can't do this. I watch everyday as people talk about how they bought this and bought that. I watch many financial news shows, including the Suze Orman Show, and I see the financial predicaments that people are in and how they still want to spend lavishly. What have we done to ourselves as a civilization, folks?
One of the major parts of the program that worried me is - our debt is continually being financed by foreign powers. What happens when they come to collect? Many people will say, "oh, they won't do that." Really? OK, let's just say that, sure, we aren't going to be harassed by Chinese collection agencies. But the wealth of the U.S. being held by people abroad weakens our national security and it also increases the influence that other nations have on our country's policies. For example, the documentary highlights the Suez Canal Crisis that ensued in the 1950s. France and England were fighting Egypt, who was threatening to close and take over the Suez Canal, a major lifeline for trade between Europe and the Middle East. The British were ready to attack and invade Egypt to retain control. However, they needed U.S.-backed funds. Why? At that time, the U.S. was financing most of England's national debt. President Eisenhower was opposed to any more involvement of U.S. troops after just coming out of WWII and also the recent conflict in Korea. So, what did the U.S. do? The U.S. threatened to call on the debt owed by the British. Immediately, if the British continued their aggression in the Suez Canal region. Days later, the British withdrew.
Don't think that could happen again, with this time the U.S. on the other side? Absolutely. Folks - we need to do something here. People in this country treat money like it just pops out of thin air. They expect the government to do this and that, provide this service and that service, fund schools and our military and our roads, etc. But people - we need to realize that we CANNOT do it. And when the time comes, taxes will be rising. It's inevitable. I hate it when people talk about how they are overtaxed as it is. No you're not. Not for what is being provided to you.
Anyways, this is a wake-up call for all Americans. The documentary opened up my eyes to the problem and the crisis, and how it is looming for my generation to handle. I recommend the movie to anyone interested in the topic.