[Grovenet] Where have Silicon Valley's Republicans gone?

[David Morelli]

On Oct 30, 2008, at 8:10 PM, Steven wrote:

> He made bad decisions several times. What makes this different?


I don't know.  Maybe he realized that the party that promises less  
government and delivers "the amazing uptick in federal spending (the  
debt has more than doubled since January 2001)" doesn't know how to  
do the math.

The tax cut that was supposed to stimulate the economy and eliminate  
the national debt, doubled the national debt.

The Federal Budget is balanced...  except for the interest payment on  
the National Debt.

At the current average interest rate of about 4.4%, the interest is  
about $441 Billion for 2008.  The Budget shortfall is about $454  
Billion.

That means that at the current interest rate we can never retire the  
debt.  And if the interest rates rise for any reason, the situation  
gets worse.

McCain proposes to expand the military, cut taxes and balance the  
budget.

Do the math.  In 2008, we expect to take in about $2,523 Billion if  
the economy doesn't tank.

We will spend about $657 Billion on Social Security,  $582 Billion on  
the Department of Defense, $85 Billion on VA, $39 Billion on Homeland  
Security, $54 Billion on Corp of Engineers & Civil Defense, and $13  
Billion for Judicial Branch, Legislative Branch and Office of the  
President.

That leaves $1,093 Billion.  At 4.4%, the interest takes $441  
Billion.  At 10% (or a combination of lower taxes, larger debt, and  
higher interest), the interest would take it all.

That means, even with the complete elimination of agriculture,  
commerce, education, energy, health, human services, housing,  
interior, justice, labor, state, transportation, EPA, GSA,  
international aid, NASA, NSF, and SBA, we could not balance our  
federal budget.  And we could never retire the debt.  When you have  
to borrow money, to pay the interest on your loans you are insolvent  
- bankrupt.  Someday the possibility that the United States is a sub  
prime borrower is going to scare the investors.

David