Can America survive by continually increasing the national debt? This question is becoming more apparent to many families that understand how budgets operate. The recent government shut down for 16 days helped to wake people up to the fact that something is very wrong in the federal government.
Oct. 1 is the end of the fiscal year for our government. This date serves as a deadline for Congress and the president to pass a budget, which would keep the government in operation. Four of the five years that President Barack Obama has been in the White House, he has been late submitting a budget proposal. Law requires the president to submit a budget proposal by Feb. 4, which would give him eight months to work with Congress and get it approved before the Oct. 1 deadline.
Without the approved budget each year, a continuing resolution must be passed by Congress and signed by the president to appropriate funding to the various departments and agencies that works for the government. This is what people refer to as “kicking the can down the road” because it does nothing to prevent the next CR from taking place. This is also often referred to as a budget battle but is just more spending without a budget.
I prefer calling it an open taxpayer checkbook. The next CR will need to take place before Jan. 15 or another shutdown will occur. Not passing a budget allows Congress to misuse the CRs as a bargaining chip to alter other bills, as we saw recently with the attempt to delay Obamacare. Sen. Mitch McConnell was able to negotiate nearly $3 billion for a dam in his state of Kentucky.
As the $17 trillion debt continues to rise, so will the interest payment on the principle that we must pay our creditors. Currently about 25 percent of the $1 trillion we borrow each year goes toward paying the interest on the national debt. If the interest rate goes up, it will also increase the payment.
The lack of our government to deal with the fiscal problems has caused uncertainty in the U.S. dollar around the world. We are the only nation in the world that can continually print money, since we serve as the world’s reserve currency. I believe we are in danger of another currency becoming the world reserve currency and our dollars will come home to us worth very little. At that point, our country will be in a state of fiscal collapse.
The people in this country must realize there will be some painful spending cuts involved that will affect everyone when we stop borrowing money to operate our continually growing government. The truth needs to be told to America and a commitment made by all of our legislature to stop the insane borrowing and debt increases. Tell your representatives to stop kicking the can down the road and fix the problem.