US Faces Another Debt Crisis

Congress and our President is planning to raise the debt ceiling again (here and many other stories). Debt continues to be a huge bondage to our country that we ourselves don’t appreciate or recognize. This is a huge issue, in our opinion here at Bible and Business.

As of September 1, the national debt is 19,844,621,643,528.62. $5.4T is intergovernmental debt, so the Federal Government’s debt to outside parties is ~$14.4T. Using the lower figure, our national debt translates into ~$45K/person in America. Our total economy (GDP – Gross Domestic Product, which is the sum total of our national output of goods and services) is $18.6T for 2016 (in 2009 chained dollars, the GDP is $16.7T – “Chained dollars” is adjusted for inflation in 2009 dollars.)

Our total debt that is owed outside the Federal Government is approaching equality with our annual GDP. If we include the total Federal Debt and compare it to the “nominal” (think “not chained) GDP, our debt exceeds our entire economy’s output for a single year.

We are drowning in debt – literally the frog in the frying pan. Consider this:

  • The 50 states combined have a total debt of $5.1T or ~ $16K/person
  • The unfunded estimated future liabilities for Medicare parts A, B and D plus Federal Employee and Veterans benefits totals ~ $87T (here too).
  • estimates current and future Federal debt liabilities will equal $890K/taxpayer in the US.

This entire structure is unsustainable. We have no one to blame but ourselves. This isn’t a Republican or Democrat issue, it is an American issue that affects everyone equally. If we don’t start living within our means, our entire economy will collapse under the weight of this debt. This is both undeniable and unavoidable.

At some point in the future, the US will not be able to meet its’ obligations to pay debt when it comes due. Americans will miss their government checks. Direct deposits will not happen. Tax refunds will be missing. The Federal Government sends out over 80 million checks each month. We have created a government that knows how to license, regulate and redistribute wealth, but it doesn’t know how to say “no” to it’s citizens when it should.

The social unrest that will ensue when these checks stop coming will be directed, we believe, at the rich – really anyone perceived as having something someone else needs. Black markets will quickly develop and violence will erupt, IMHO. We hope we’re wrong.

When (not if) we go down, the entire world’s economy will go down with us. This just might trigger a series of intense wars as leaders try to protect their own countries and lash out at the US for being so greedy and reckless.

It will be a time for the church to be effective like never before – but only if we’re prepared and ready to give it all away to help people find Christ.

What can you do?

  1. Stop electing people to Congress who vote for budgets that increase our debt regardless of party affiliation
  2. Stop blaming others – each of us are responsible as voters for this situation
  3. Inform yourself – Concord Coalition is a good place to start
  4. Start saving hard goods that can be bartered – not precious metals – but things people will need in the areas of safety and basic needs
  5. Pray that God will bring revival to this country – unless we turn back to Him, we *will* continue down this unsustainable path
  6. Get out of debt as much as possible

Bill English