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Obama’s Richest Nation Wouldn’t Get a Loan at My Bank
Posted By Michelle Horstman On February 6, 2010 @ 9:00 am In NewsReal Blog | No Comments
Once again, President Obama tried to work the guilt trip on us at the National Prayer Breakfast on Feb 4. He continues to claim that the “wealthiest nation” has a moral obligation to pass the government power tool known as the healthcare bill. If we’re talking morality, it was poor stewardship indeed to pass such a bill, and we can’t in all honesty base it on calling ourselves the wealthiest nation.
Just a few “wealthiest nation” guilt quotes from Obama:
We may disagree about the best way to reform our health care system, but surely we can agree that no one ought to go broke when they get sick in the richest nation on Earth. -National Prayer breakfast Feb 4, 2010
In the wealthiest nation on Earth, we are neglecting to live out that call.” – August 19, 2009
I don’t know how he is coming up with his numbers, but I assure you they wouldn’t fly at my bank. When we apply for a loan, my bank determines our worth based on our income and our debt load, doesn’t yours? My bank would require those numbers, and not even Countrywide or Barney Frank would give us the time of day if you base it on debt vs. Gross Domestic Product (GDP.)
Take a look at the public debt numbers as a percent of GDP from the CIA World Factbook, and you’ll see that we are not looking too good. We rank 66th (from worst to best) out of 129 nations listed, just slightly better than Mexico. Not too hot. We are doing better than Zimbabwe (good!) but much worse than Russia (how did that happen?) This map illustrates it even better, showing the entire US/Canadian area of the globe as heavily in debt as compared to GDP.
The Financial Times had this to say, just in this past week:
Crucially, projections of the overall debt-to-GDP ratio for the US are seen rising from 53 per cent in 2009 to 73 per cent in 2015 and 77 per cent by 2020. Moody’s, however, says this understates the overall US debt level. “Using the general government measure, including state and local governments as well as the federal government, which is used internationally, this ratio would be well over 100 per cent in 2020.”
Look out, Mexico…we’re closing in on you fast!
There are many economists who like to use different formulas to justify calling us the wealthiest nation, but when you factor in our debt, it just doesn’t work. If you don’t, then it would be like saying the guy down the street in a two million dollar house is rich, even though we know he’s up to his eyeballs in debt and his house isn’t worth as much as the three mortgages he’s taken out on it. He’s not going to get another loan at any bank until he pays it off.
So, if the United States was an everyday citizen, their credit wouldn’t fly at the bank. If one takes debt into account, we couldn’t possibly be the richest nation in the world. It also follows that the last thing we should be doing is passing any kind of spending bill whatsoever. If there is any guilt to be assigned here, maybe it should be guilt at borrowing trillions of dollars in other people’s money when we don’t have it to spend.
Under the circumstances, you’ve got to wonder…..why is China still loaning us money?
Michelle is a small business owner in South Texas.
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