The Packet recently reported America will have to borrow 40 cents for every dollar spent this year.
This equates to a person with an income of $60,000 borrowing $40,000 each year and spending $100,000, or someone with a $300,000 income borrowing $200,000 each year. Think about it. Could you get by with doing that? What would be the ultimate consequences?
The financial meltdown of 2008-09, caused by reckless lending and a real estate bubble, will only be a small blip on the chart compared with what will happen when the day of reckoning arrives for America's spending and borrowing binge.
They say we are putting a terrible burden on our children and grandchildren. Not necessarily. If you are 55, 60 or 70 years old planning on years of retirement, traveling and passing something on to your children and grandchildren, you had better think again. At the current rate, the day of reckoning will affect you -- sooner than you think and potentially in a major way.
What will you do when the letter arrives stating that your pension payment will be reduced to one-half of its former amount because the fund is running out of money because of the bond and stock market collapses? What will you do when your IRA or 401(k) is worth only a fraction of its current value? Democrats and Republicans, liberals and conservatives, presidents and pundits, agree the situation is not sustainable. However, nothing substantive will be done unless all Americans rise up and demand it.
John BrookmeyerHilton Head Island