Editor: U.S. credit will max out when the world ‘loses confidence in the dollars we owe’


A financial historian who has been writing for decades about economics says it’s time to stop incurring debt otherwise we will soon find our proverbial credit card has been declined.

TIME has the commentary:

We owe more than we can easily repay. We spend too much and borrow too much. Worse, we promise too much. We conjure dollar bills by the trillions–pull them right out of thin air. I won’t insist that this can’t go on, because it has. I only say that it will eventually stop.

I don’t know the date, but I believe that I know the reason. It will stop when the world loses confidence in the dollars we owe. Come that moment of truth, the nation will resemble Chicago, a once prosperous polity now trying to persuade its once trusting creditors that it is actually solvent.

To understand our financial fix, put yourself in the position of the government. Say you earn the typical American family income, and you spend and borrow as the government does. So assuming, you would earn $54,000 a year, spend $64,000 a year and charge $10,000 to your already slightly overburdened credit card. I say slightly overburdened–your outstanding balance is about $223,000.

We can’t afford to compound our debt any further. Click here to help Tea Party Patriots urge lawmakers to support a commonsense spending plan that would balance our budget within five years!