The U. S. is the richest and most powerful nation on earth. . . an opinion held by the vast majority of people. Only the later is true.
The illusion of richness of the U. S. is nothing more than a house of cards built on a mountain of debt. The average person, age 20 and older, has racked up a consumer installment debt of about $9, 000. . . has a home mortgage around $15, 000. . . and is responsible for $30, 000 of the government's public debt.
The message of this book is grim. The U. S. has become drastically overextended. . . it will be un-able to live up to its commitments in the years ahead. Government data discloses a fiscal de-cline has been in progress since 1970. Further, it reveals a frightful truth. The U. S. has passed the point of no return, that is, the capability of fixing the problem without basically restructuring numerous and vital commitments. And the problem is not the public debt, it's the trust funds.
By 1983, the trust funds were gobbling up 50 percent of all of the government's receipts. The tail began wagging the dog. 46. 4 cents out of every dollar the government spent in 2001 was spent by the trusts, vis-à -vis 12. 5 cents by the Department of Defense. Revealed now, for the first time, are the dollar numbers which spell out the fate of the U. S.
Recent surpluses referred to by the White House and Congress, were created with smoke and mirrors. The smoke was Social Security funds and contributions by railroad workers and federal employees, for retirement, medical and hospital insurance, etc. When trust funds are excluded, the annual deficits neared one trillion dollars each year between 1998 and 2001. The last real surplus occurred prior to 1959. Annual interest expense exceeded 38% of receipts in 2002.
Four of the 16 trust funds spell trouble with a capital T . . . and the death knell. As of the close of fiscal year 2001, these four trust funds had unfunded liabilities of $16. 8 trillion. With the funded public debt of $5. 8 trillion, total U. S. liabilities exceeded $22 trillion. . . an unbearable load for Big Sam . . . and it's growing daily.
Being the leading nation in the world is not irrevocable. . . Rome, Spain, and England can so testify.
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