Busted: Bankers and The Global Economy

August 22, 2008

The National Deficit Time Bomb

national security time bomb

national security time bomb

Discussion of the U.S. national debt is reasonably prominent on this website and is core to what is often discussed. Recently, Warren Buffet, famed trader extraordinaire has taken some of the spotlight to warn about the excesses and pitfalls of the U.S. national debt that continues to build unabated.

If the U.S. doesn’t move quickly to tame the federal government’s debts, the idea is that the nation will enslave coming generations with economic problems that make this bad year in economic finance look very rosy indeed. Warren Buffet and Pete Peterson are fielding the idea that the national deficit matters this election year. It does, but do the politicians and the nation of people realize it?

Tops in the discussion and recent advertising for the documentary movie “I.O.U.S.A.” is the idea that the United States will continue to be enslaved for future generations to debt that we are creating now. Buffet, Peterson and many others are considering not only the huge $10 trillion dollar national debt, but the projected needs for a soon bankrupt Medicare and Social Security system that threaten to swallow up the system that Congress built. When the additional debt is considered, the U.S. is looking at a national deficit of more than $50 trillion. Keep in mind that this is the future and whether these brilliant money mongers say so or not, is not indefinitely sustainable.

This writer, from all my vast experience in corporate finance and economics, says that the United States doesn’t have the time to indulge in fantasy-land thinking. The future of the nation as the United States is actually at stake now and the crossroads of no return is somewhere in the immediate future. A nation of people cannot continually spend more than they make and put off paying for today tomorrow, while sending huge quantities of economic resources overseas. The International Society of Bankers, at some point and time are going to cut off the “worthless, self-destructive” attitudes that Americans insist on bathing their collective lives in, politicians included. This nation is quickly running out of the clout and the economic strength that it needs to continue to garner the interest and affection of global bankers, the holders of all the credit based on the money system that has been developed. The United States is bleeding itself to death as politicians and business continue the carnage for their own empowerment.

“Our situation is a lot worse than advertised, and we need to start making some tough choices if we want our future to be better than our past,” announced former U.S. Comptroller David Walker. Mr. Walker, the bottom line is that the nation doesn’t have a future if politicians and business interests don’t take notice of the impending crisis. They are too busy dealing with their own self-absorbed ideas and plans for profit. In essence, the people that you are listening to in the documentary “I.O.U.S.A.” are the very ones that had a role in bringing this financial crisis about.

Naturally, the knowledgeable know that the national debt has mushroomed like a nuclear cloud since George Bush took office, which has been in the last eight years. Before that, we screamed about the national debt without realizing what would be cast upon us by reckless politicians in the new millennium. Republican “cost-cutting” and “low taxation” are a myth because politicians have become something other than what they represent themselves to be. The definition of party politics has become a definition bordering on meaninglessness for most of the lawmakers that America continues to appoint. Politicians have denuded the U.S. economic and financial landscape for the appearance of power and the personal interests for the short term with the idea that the United States of America is a “forever deal”.

Walker and the movie cite government figures that show the U.S. government owed roughly $53 trillion more than it had at the end of the 2007 fiscal year. According to the documentary promoters $11 trillion of that debt covers the publicly traded government debt, the amount the federal government owes to employee pensions and the cost of environmental cleanup of federal land. The rest of the $53 trillion figure accounts for projected shortfalls in Medicare and Social Security.

Dealing with such luxuries as land cleanup and the future of health care and retirement won’t matter if the nation spends itself into oblivion and poverty. Even pensions, government guarantees and publicly traded debt won’t matter if politicians don’t get a grasp on some of the realities of what they are doing. The finances of the federal government of the United States threaten the nation more than any subprime mortgage crisis. The mortgage and housing crisis is merely a prelude to an economic house of cards.

Dollar devaluation is in the now and in the future in a very real way as the Federal Reserve continues to serve its’ ailing and senile patient, the U.S. economy. The Federal Reserve is one of many leeches that hang on the national economy, draining it of its lifeblood and purpose. This election year may rank as among the most important in this country, but for all the “wrong” reasons and the people of the country don’t fully realize it. Perhaps the movie “I.O.U.S.A.” can have a profound effect if enough citizens take interest and are willing to demand accountability and change. It won’t be easy. Whether the nation will survive depends on the resolve of the people and their determination to force the current attitudinal corruption out of politics. The problem remains that most Americans live in a very self-absorbed world of their own making, refusing to deal with anything other than what immediately affects them. That is the national Achilles heel. This is a national security issue larger than any war could ever be.

Powers come and go. Like Rome that preceded us and every power before and since, nations rise and fall. Our failures are due to our own corruption and selfishness.

~ E. Manning

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1 Comment

  1. Hello

    It’s official! I.O.U.S.A. has been critically acclaimed by critics across the nation. Dubbed the “Inconvenient Truth” for the U.S. national debt by The Village Voice, “sobering” by The Hollywood Reporter, and “equal parts enlightening and alarming” by the New York Times, I.O.U.S.A. is building momentum fast and the filmmakers have you to thank for it.

    Thank you for taking the time to blog about the I.O.U.S.A.: Live event on August 21st. The live panel discussion, with notable financial leaders Warren Buffett, William Niskanen, and Pete Peterson, was simulcast to hundreds of theatres nationwide following the premiere of the documentary I.O.U.S.A. Your efforts are helping to build the grassroots movement driving the success of this documentary.

    Below, please find a brief clip highlighting I.O.U.S.A.: Live event:

    Embed Code:

    If you have the bandwidth to support it, this video would be a great media addition for any I.O.U.S.A. coverage you may have run on your site. Feel free to pass on the link and let me know if you have any questions.

    Take care,

    Nick Alan Jones

    mPRm Public Relations
    5670 Wilshire Blvd., Ste 2500 | Los Angeles, CA 90036

    mPRm – one of Los Angeles Business Journal’s Top Five Independent PR Firms

    Comment by Nick Jones — September 5, 2008 @ 3:57 pm


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