Think Ron Paul is Dangerous? Here's Why His Plan to Balance the Budget is Necessary for Our Security!

I was reflecting today on a conversation I had with my employer at the time how I thought it was terrible that the national debt was more than 3 times the entire budget for the year 2008. He said it didn’t seem so bad, a person could easily carry a debt load 3 times their annual income, and they could have it paid off in a couple decades. True, but it was more like 4 times annual income when you took into account the budget deficit. So, how far have we come with a President who promised to slash the deficit? Let’s take a look:

2008:

$2,524,000,000,000     tax revenues
$2,982,000,000,000     total expenses
$458,000,000,000        new debt
$10,669,000,000,000   total debt year end

2011:

$2,303,000,000,000       tax revenues
$3,601,000,000,000       total expenses
$1,298,000,000,000       new debt
$15,243,000,000,000     total debt year end

Doesn’t look so good does it? But these are some awful big numbers, and they can be hard to interpret, so let’s make it look like a household budget by removing 8 zeros. I’ve also thrown in “bank approved” numbers based on the amount our bank told my wife and I we would qualify for if we applied for a mortgage. The bank would have approved us for a total debt load of about 3.2 times our annual income.

2008:

$25,240       household income
$29,820       total expenses
$4,580        on credit card
$106,690    total debt year end
$80,770      bank approved debt

2011:

$23,030     household income
$36,010     total expenses
$12,980     on credit card
$152,430   total debt year end
$73,700     bank approved debt

Yikes! We might have been okayish in 2008, but we’re in deep trouble now. Uncle Sam now has more than TWICE the amount of debt that a bank would allow for a regular borrower, and the picture is only growing worse by the day. Interest payments already amount to 20% of federal revenue.

At current rates, it will only be 47 more years until EVERY SINGLE PENNY of tax revenues go to paying interest on the debt. Every penny. Think about that. In less than 50 years, if we don’t change things, there will be zero money for defense, zero money for Social Security and Medicare, zero money for ANYTHING ELSE, every penny will go to paying the debt.

Think I’m being pessimistic? Social Security and Medicare payments, already more than 50% of federal revenues, are projected to skyrocket, thus adding to the deficit FASTER. Interest rates will spike drastically long before we get close to this theoretical borrowing limit since the closer to the absolute theoretical limit, the higher the interest rate that will have to be offered to entice lenders. Throw in sluggish economic performance resulting from government borrowing crowding out private sector investment, and you have a recipe for declining tax revenues as well. Look at it that way, and I think it’s OPTIMISTIC to say that I’ll make it to being a grandfather (my son is less than a year old) before the U. S. government officially defaults on its debt, with all the terrifying implications. You’ll find dozens of economists predicting that we’ll see a default within the DECADE.

Still think Ron Paul is dangerous?! Dangerous is ANY POLITICIAN UNWILLING to make the drastic cuts necessary to balance the budget. A large, technologically advanced military will only keep us safe for as long as we can afford to pay the soldiers.