Today, I heard some crippling news--China will overtake the United States in 2016, as determined by the IMF[1]. Five years from now, the United States will have the second-largest economy in the world. Our debt and lack of restraint while spending has thrown us, literally under the bus. But, I was unsure about how bad this was....how bad is $1.4 trillion, how much do we owe China, where do we go from her?
Our current debt to China is $843 Billion, and it is climbing. That is currently, a little over 60% of our total debt. Our current debt is larger than the GDP of China, the UK, and Australia...combined[2]. Each taxpayer's current contribution to the debt--is equal to $128,000+ [3]. We are drowning because of programs such as Social Security, Medicare, etc. And this will not be the burden of the current people in office, but rather (with this new projection) will be the burden that will squarely fall on me as I try my best to provide for retiring baby boomers and for their Obamacare.
In all, the current presidency, with the installation of socialist-esque healthcare and the raising of taxes, does not make any sense. As said before, with each taxpayer’s share of the debt well above $100,000—HUGE tax raises will need to be made to even make a dent in the current debt. But, a plan of fiscal responsibility may allow us to try and fight back into our current spot as #1 in the world.
As for now, the Dragon of the Far East is waiting—biding its time, until 2016. And if the people who have failed us in the last two years are not replaced the blog that I have about the 2016 election, may be written in Cantonese.
[1] http://www.marketwatch.com/story/imf-bombshell-age-of-america-about-to-end-2011-04-25
[2] http://www.defeatthedebt.com/understanding-the-national-debt/how-much-do-we-owe/
[3] http://www.usdebtclock.org/
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