Checks and Balances
Yet, according to the New York Times, he’s currently working with Congressional Democrats to get another $150 billion dollars passed in stimulus money by the end
of THIS year. That’s NOT going to help us reduce our debt anytime soon!
A fight is looming on Capital Hill – Congress will soon have to lift the debt ceiling to give the nearly maxed out government a higher debt limit, or dramatically and
immediately CUT spending to stay within the current cap. Either way, things are going to get very heated on Capital Hill.
Ok, so what’s the bottom line here?
C2 5) The bottom line:
As evidenced by the $1.3 trillion dollar deficit last year and the $1.5 trillion dollar deficit we’re expected to hit this year, the U.S. is currently unable to pay its own bills.
What does this mean to you if you’re approaching retirement? The Funds for Social Security, for example, must soon be PAID BACK by the government, because 78
million baby boomers will retire over the next 19 years. Since this money has previously been spent by our government, resources need to be identified to repay this
critically important fund.
The really bad news here, is the U.S. debt is so massive, that China and other countries are now reluctant to lend us any additional money. This has already led the
Federal Reserve to purchase $600 billion dollars worth of U.S. Government debt, however they are printing new money to cover the debt. Printing new money
increases the supply of U.S. currency and directly REDUCES the value of the dollar.
Other countries will require more U.S. dollars in exchange for their goods. This causes the price of imports to increase, causing the prices of everything from
electronics you purchase at Best Buy, to the consumer goods you purchase at Wal-Mart to increase, as well.
So, what’s the alternative to this? Higher taxes and reduced benefits. The bottom line is this: any way you slice it, unless the government STOPS its uncontrolled
spending and get’s a realistic plan for the federal budget and debt — the cost of a lot of things for you and me is going to continue to go UP!
C2 6) Today’s Poll:
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In this week’s CBTV poll, we asked Americans an important question:
What do you think would be the BEST way to LOWER our national debt?
A) Raise taxes
B) Cut spending
C) Cut aid to foreign countries
D) Reduce federal benefits
Well, 49% of you said that cutting spending is the BEST way to LOWER our national debt. You’re certainly correct! With the large number of federal programs we
have today, along with spending billions of dollars unnecessarily, coupled with the failed stimulus bills, the bailout money given to several industries, and the rising
interest on our federal debt, something HAS to change. We cannot afford to continue the reckless spending habits that have been the NORM the past few years! It is
simply unsustainable.
7) On the Street:
C2
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In our “On the Street” segment, we travel the country to ask Americans what they think about an important financial topic or issue. For this week’s segment, we asked
people their opinion about the skyrocketing national debt.
Let’s take a look at what America had to say…
OTS: 1 ½ …
C1 Matt: Americans sure are angry about the federal debt and government spending! And these interviews were taken last fall, when the debt was only 12.2
trillion dollars. That first gentleman had a very good point – WE’RE all going to be the ones paying for it in the end!
C1 
Matt’s Weekly Tip, Tool or Technique:
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And now for Matt’s weekly tip, tool or technique…
Let’s NOT follow the lead of our government. Instead of excessive SPENDING… try excessive SAVING! Living and spending within your means today can help you
to rely LESS on the government, and MORE on YOURSELF, in retirement. Here are 3 money saving tips you can implement NOW to help you live within your
means, save more for your future and become financially independent when you retire:
Tip #1: Eliminate unnecessary discretionary spending. Resist the temptation to spend money on things you DON’T truly need. Try the 48-hour rule. If you see
something you really want, leave it alone. Wait 48 hours. If you still see the need to purchase it, then move forward (if your spouse agrees). But first, stop and ask
yourself if you REALLY need it or simply want it. If you really can live without it, leave it there!
Tip #2: Dump Debt. No one ever got rich with debt up to their neck. Stop being slave to the lender. If you’re experiencing too much month at the end of your money,
then take action now to reduce as much debt as possible. Get radical about it! Sell stuff you don’t need, work overtime or get a second job, and begin paying off as
much debt as you can. Start with paying off all your credit cards, student loans and personal debts. Then pay off automobile loans and 2nd mortgages. By the time you
reach retirement age, you definitely want to be debt-free!
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