Weekly Opinion Editorial
HITTING THE WALL!
by Steve Fair
HITTING THE WALL!by Steve Fair
The U.S. debt ceiling- the legal limit on government borrowing- has been in the news lately, but little or nothing has been said about the looming US debt wall- the point in which the percent of government debt to America’s GDP begins to affect our economy. An Oklahoman is trying to change that.
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On Sunday’s Fox News ‘Huckabee,’ Marc Nuttle from Norman, Oklahoma was interviewed by the Governor about the debt crisis in the US and across the world. Marc is an attorney based in Norman, Oklahoma, who specializes in international trade, international foreign policy and international political affairs. Nuttle is widely recognized for his expertise in forecasting political and economic trends. He represents corporations, business projects and political entities nationally and internationally.
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Nuttle is heading up an organization known as Debt Wall (http://debtwall.org/). At DW, they contend there is a limited amount of money that the world’s sovereign governments can borrow in any single given year without pressuring interest rates to rise above the point of affordability. They believe that limit is approximately 9% of the world’s gross domestic product (GDP) and the US will hit the wall by July 31, 2012. The Debt Wall Index is a countdown to this collision. Based on current projections of economic growth and government spending, Nuttle and his organization believe the US will hit the Debt Wall by July 31, 2012.
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On Sunday’s Fox News ‘Huckabee,’ Marc Nuttle from Norman, Oklahoma was interviewed by the Governor about the debt crisis in the US and across the world. Marc is an attorney based in Norman, Oklahoma, who specializes in international trade, international foreign policy and international political affairs. Nuttle is widely recognized for his expertise in forecasting political and economic trends. He represents corporations, business projects and political entities nationally and internationally.
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Nuttle is heading up an organization known as Debt Wall (http://debtwall.org/). At DW, they contend there is a limited amount of money that the world’s sovereign governments can borrow in any single given year without pressuring interest rates to rise above the point of affordability. They believe that limit is approximately 9% of the world’s gross domestic product (GDP) and the US will hit the wall by July 31, 2012. The Debt Wall Index is a countdown to this collision. Based on current projections of economic growth and government spending, Nuttle and his organization believe the US will hit the Debt Wall by July 31, 2012.
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Marc’s reasoning is this: The current U.S. spending deficit is about $1.67 trillion. The spending deficits of the rest of the nations in the world run another $9 trillion or so. Combined, there simply is not enough liquid capital in the world to fund $10 trillion in deficits at an interest rate taxpayer anywhere can actually afford.
Marc’s reasoning is this: The current U.S. spending deficit is about $1.67 trillion. The spending deficits of the rest of the nations in the world run another $9 trillion or so. Combined, there simply is not enough liquid capital in the world to fund $10 trillion in deficits at an interest rate taxpayer anywhere can actually afford.
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Nuttle believes that once the world governments run out of ready money to borrow — they’ll pursue other means like raising interest rates to pull investors and their equity from other markets. They’ll also turn up the presses and print more money, devaluing their currencies and causing inflation. During inflationary times, the middle and lower income earners always feel the biggest pinch.
Nuttle believes that once the world governments run out of ready money to borrow — they’ll pursue other means like raising interest rates to pull investors and their equity from other markets. They’ll also turn up the presses and print more money, devaluing their currencies and causing inflation. During inflationary times, the middle and lower income earners always feel the biggest pinch.
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At debtwall.org, Nuttle has a top ten list of things you need to know about the looming debt crisis in America. http://debtwall.org/debt-crisis-index-what-you-need-to-know/ To summarize the ten points he is simply saying if we don’t get our debt under control, our lives will change dramatically from an economic standpoint once we hit the Debt Wall.
At debtwall.org, Nuttle has a top ten list of things you need to know about the looming debt crisis in America. http://debtwall.org/debt-crisis-index-what-you-need-to-know/ To summarize the ten points he is simply saying if we don’t get our debt under control, our lives will change dramatically from an economic standpoint once we hit the Debt Wall.
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On ‘Huckabee’ the Governor noted that if Nuttle’s projected date of July 31st of next year is correct then America will be in the midst of the 2012 presidential campaign when the wall is hit. “Isn’t it in the best interest of both Parties to deal with the debt issue?” Huckabee asked. “Certainly,” Nuttle replied. “The nation’s debt wall is not a partisan issue.”
On ‘Huckabee’ the Governor noted that if Nuttle’s projected date of July 31st of next year is correct then America will be in the midst of the 2012 presidential campaign when the wall is hit. “Isn’t it in the best interest of both Parties to deal with the debt issue?” Huckabee asked. “Certainly,” Nuttle replied. “The nation’s debt wall is not a partisan issue.”
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It isn’t a partisan issue, but it certainly seems that way. When you consider how difficult was to get the debt ceiling compromise through the House, it would seem many in Washington mistakenly believe we have a revenue problem, not a spending problem.
It isn’t a partisan issue, but it certainly seems that way. When you consider how difficult was to get the debt ceiling compromise through the House, it would seem many in Washington mistakenly believe we have a revenue problem, not a spending problem.
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Dave Ramsey broke down the US federal budget and debt to levels that we can better understand when he said the cuts Congress was like a family making 58K a year, spending 75K a year and have over 327K in credit card debt. The family decides to fix it, by reducing their annual spending to $72K. While the cuts got them going in the right direction, it reveals a complete disregard of the fact their deficit spending is not sustainable long-term. Even if they act now, some believe it might be too late.
Dave Ramsey broke down the US federal budget and debt to levels that we can better understand when he said the cuts Congress was like a family making 58K a year, spending 75K a year and have over 327K in credit card debt. The family decides to fix it, by reducing their annual spending to $72K. While the cuts got them going in the right direction, it reveals a complete disregard of the fact their deficit spending is not sustainable long-term. Even if they act now, some believe it might be too late.
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A month ago Peter Leeds of Penny Stocks, wrote in an op/ed http://augustafreepress.com/2011/08/15/peter-leeds-past-the-point-of-no-return/that America is past the point of no return on dealing with the national debt issue. “You've certainly heard the endless stream of negative economic news lately. America's fiscal house is in trouble, job growth has stalled, and we may be driving right into a double-dip recession. While giving their pessimistic economic outlooks, there is one thing that the doomsayers have gotten wrong - they aren't nearly worried enough. We've past the point of no return. In both America and globally, in less than two years, our societies will look very different, and possibly be almost unrecognizable. I expect very strong inflation, fueled by loose monetary policies and an unprecedented period of near zero interest rates,” Leeds predicted. Not a very rosy picture.
A month ago Peter Leeds of Penny Stocks, wrote in an op/ed http://augustafreepress.com/2011/08/15/peter-leeds-past-the-point-of-no-return/that America is past the point of no return on dealing with the national debt issue. “You've certainly heard the endless stream of negative economic news lately. America's fiscal house is in trouble, job growth has stalled, and we may be driving right into a double-dip recession. While giving their pessimistic economic outlooks, there is one thing that the doomsayers have gotten wrong - they aren't nearly worried enough. We've past the point of no return. In both America and globally, in less than two years, our societies will look very different, and possibly be almost unrecognizable. I expect very strong inflation, fueled by loose monetary policies and an unprecedented period of near zero interest rates,” Leeds predicted. Not a very rosy picture.
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If Leeds assessment is correct and the debt wall projection by Nuttle’s group is accurate, America may be in for a long period of economic recession, but until a majority in Washington starts slamming on the brakes and not just lightly tapping them, it appears the US will hit the wall like a crash test car. The problem is the American economy is in the car, not the dummies that got us there.
If Leeds assessment is correct and the debt wall projection by Nuttle’s group is accurate, America may be in for a long period of economic recession, but until a majority in Washington starts slamming on the brakes and not just lightly tapping them, it appears the US will hit the wall like a crash test car. The problem is the American economy is in the car, not the dummies that got us there.
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