Our National Debt is now at $34.471 Trillion and climbing and if you take this following link:
https://www.pgpf.org/national-debt-clock and put it on your toolbar and click on it, you’ll get:
What Is the National Debt Right Now?
And if you click on that, you’ll get Our National Debt to the exact dollar and you’ll see it increasing by the thousands LITERALLY EVERY SECOND!!
This being from budgetary expenditures relating to the operation of our government, entitlement payouts to social security recipients and Medicare and now increasingly to debt servicing costs from the rising yields of hundreds of billions of dollars of Treasuries being sold to supplement the lack of sufficient tax revenue to fund our annual budget which is now over a trillion “in the red” per year: If you google the words> annual budget deficit, you’ll get
National Deficit | U.S. Treasury Fiscal Data
| 2023: | -1,695,148,000,000 |
| 2022: | -1,375,481,000,000 |
| 2021: | -2,775,359,000,000 |
| 2020: | -3,132,457,000,000 |
| 2019: | -983,596,000,000 |
The biggest problem caused by our rising out-of-control National Debt is that we could lose our position as the world’s Global Currency if we don’t do something soon!!
If that were to happen the dollar would lose its relative value compared to other currencies—What we sell to other nations, we would get less in return and what is imported here would cost more for each and every one of us!!!
When converting and trading our dollars into the currencies of other nations we would be getting diminishing rates of return and this would be especially true for presumably China and the Chinese Yuan if “crowned” the new Global Currency!
For example, when other nations deal with and buy oil from OPEC, these transactions now are almost always conducted in U.S. dollars. As a result, banks all over the world keep a large amount of dollars in their reserves, sometimes more than their own currency (in order to buy the oil they need.) Profits are also taken in dollars and often reinvested to purchase more petroleum and additionally used for other international transactions.
The end result is that demand for the dollar by virtue of this fact alone keeps the value of the dollar high in relation to all other currencies. Other things to do to keep the dollar in demand would be to keep its use abundant in trading with as many countries as possible so that foreign nations and foreign corporations continue to use the dollar to conduct business with the United States and with OPEC as indicated above.
Being the leader in technology, exporting this technology across the globe would also keep the dollar strong. Also inviting foreign corporations such as was done with Toyota and Mercedes to open production and manufacturing plants here increases foreign (corporate) use of the dollar and has the added benefit of employing American workers. Plus, increasing oil production here at home will drive up more demand for the dollar when exporting and with the current world situation make our allies less dependent on Russian and Iranian oil.
However, if the U.S. continues to overspend in relation to its budget this will have the opposite effect and sooner or later the dollar will decrease in value compared to other currencies. Right now, servicing on our national debt has become as much as our annual defense budget. Our debt to our gross annual domestic product (GDP) is currently listed as anywhere from 110% to 123%. Other G7 countries are about the same. In fact, here is a list of some nations and their respective debt to GDP ratios (this data and similar databases for more nations can be found in much greater detail by googling> debt to GDP ratio of countries or reviewing this link: https://www.imf.org/external/datamapper/CG_DEBT_GDP@GDD/CHN/FRA/DEU/ITA/JPN/GBR/USA.
The following is a partial summary of the data displayed on that site:
| China, People’s Republic of | 77.00 |
| France | 92.15 |
| Germany | 45.95 |
| Italy | 140.57 |
| Japan | 214.27 |
| United Kingdom | 100.75 |
| United States | 110.15 |
Now the obvious answer would be to spend less and balance the budget by spending only what is taken in through tax revenue. Clinton did it.
Yes, but that was in an era when Democrats and Republicans worked together and the tax rate on corporations was at 35%. Now the tax rate on corporations is at 21% (lowered by Trump via his Corporate Tax Act of 2017 which as a result added $8 trillion to our national debt in his 4 years in office) and with the Pandemic and all the stimulus checks sent out to businesses and families with many businesses still “going under” and others taking in less revenue because of the Pandemic, less income tax was collected by the government adding trillions to our national debt.
To solve our national debt crisis and save our dollar we will need to raise taxes on corporations to its original 35% tax but Biden when earlier trying to raise it to 28% failed. However, if re-elected, and with a Democratic Congress, Biden would succeed. Also raising the tax on those making $400,000 and a 25% tax on billionaires would pass and lastly addressing social security by raising the social security tax rate by 2% would keep it intact for the next 75 years. and with recent raises to $15-$20 per hour for many entry-level jobs from $6.00-$7.00 per hour, such would practically triple the social security tax collected on these entry-level weekly paychecks noticeably adding to social security retirement-entitlement funding.
