Learn More | Balanced Budget Challenge

Preface

$8 trillion annually. That’s the cash flow figure for concerned American citizens to focus on. That’s the approximate amount of new debt the US federal government must issue every year without interruption in order to avoid insolvency. A mere 15% reduction in needed security issuances at successive US Treasury auctions is all that it would take to force delays in the issuance of federal outlays, to cause a default on debt redemptions, or to immediately force a balanced budget upon the US. [READ MORE]

Introduction

US citizens concerned with our national fiscal situation might want to listen to a mere bean counter. I’m one of those bean counters, a CPA, a CPA who has been called on by many businessmen going into bankruptcy. When times are not good, when many people are defaulting on their financial obligations, a CPA’s work can get very interesting and very educational. We get to see people in situations of desperation, in times when they see through wishful thinking, when they see through the delusions they had convinced themselves of. We see them in a situation that almost always has a dramatic impact on the rest of their lives; they go through one sort of conversion experience or another. [READ MORE]

Supporting Graphs

View the graphs that support the Balanced Budget Challenge

Sample of how to balance the budget – page 3
Make-up of securities issued by US Treasury – page 59
Make-up of securities issued by US Treasury – page 60
Erosion of equity – page 89
Table of growth in US total debt, deficits, GDP & historical prime rate – page 90
US debt and deficit projections – page 91
Holdings of public debt as of February 2011 – page 98
Global stock & bond market capitalization – page 100
10 largest GDPs, corresponding foreign exchange reserves & % deficit to GDP – page 103
10 largest foreign exchange reserves, corresponding GDPs & % deficit to GDP – page 104
Table of expected benefits under a $500 fixed funding Social Security program with ever increasing beneficiaries – page 147
Reduction in outlays assuming reserves for future costs – page 157
Federal and state expenditures – page 161