By Patrice Lewis
Posted: September 25, 2010 ~ 1:00 am Eastern
© 2010
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| The Titanic |
My husband and I have always wanted to take a cruise to Alaska. Sounds fun, doesn't it? The luxury, the scenery, the freedom from responsibility. Despite the fact that we couldn't afford it, we decided to borrow money to take a cruise.
Well the cruise was wonderful, though now we have to borrow money to make the loan payments on the cruise, as well as borrow more money to make the interest payments on the loan. But we loved that cruise so much we're booking another one next year. It's OK, we can borrow the money. We plan to take another cruise the year after. And the year after that. And the year after that.
Meanwhile, we'll blame someone – anyone – for the fact that we're so deeply in debt. I think I'll blame, um, my brother. It's not our fault that we can't stop ourselves from digging the debt hole deeper, or that much of the debt is incurred for frivolous reasons. It's my brother's fault.
What's wrong with this picture? If you're the federal government, apparently nothing.
We now know that the
actual figure of America's debt is much higher than the petty and trivial sum of $14.3 trillion given by the Congressional Budget Office. And make no mistake, $14.3 trillion is not pocket change (for a knock-you-flat visual of a trillion dollars,
click here).
"The Government is lying about the amount of debt. It is engaging in Enron accounting," says Laurence Kotlikoff, an economist at Boston University. That's because the CBO doesn't count the euphemistically called "off-budget" obligations like Social Security and Medicare. (This is like my husband and I deeming our mythical cruise payments to be "off-budget" in our yearly expenses.)
So how much does our nation owe? Mr. Kotlikoff says the debt is actually $200 trillion – 14 times the "official" amount. That's a lot of cruises. And our nation is taking more and more trips.
Does this sound sustainable to you?
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| Sinking the Good Ship America |
Of course not. How can America possibly pay back $200 trillion? It can't. Sooner or later the people who keep lending us money will stop. When that happens, I see no possible alternative except a collapse of our national economy.
The danger of a financial collapse goes beyond the day-to-day struggles of Joe Sixpack. The danger is that Americans will look for solutions in all the wrong places, the same way Germany and Austria looked for solutions to its debt and inflation problems in the 1930s. Their solution took the form of a failed artist with a funny mustache who told people what they wanted to hear and promised to make it all better by blaming someone else. (The Jews were a convenient target since my brother wasn't born yet.)
In 1938, an Austrian woman named Kitty Werthmann was an eyewitness to the creeping totalitarianism of Hitler's Germany. Now living in South Dakota, she
wrote an eerie and horrifying account of what happened during her childhood. It's easy to understand the horrifying part. But it's eerie because we are following, virtually word for word, the same path in this country, albeit at a slower pace.
"Totalitarianism didn't come quickly," writes Werthmann. "It took five years from 1938 until 1943 to realize full dictatorship in Austria. Had it happened overnight, my countrymen would have fought to the last breath. Instead, we had creeping gradualism. Now, our only weapons were broom handles. The whole idea sounds almost unbelievable that the state, little by little, eroded our freedom."