If you are interested in the economic future of the United States, you would do well to listen to the thoughts of the man who is responsible for our nation's financial health. While there is no imminent crisis today we must prepare for future financial disaster. If we do not prepare for the health care expenses in the future we will surely have dug a hole so deep we will be unable to get out of. It has to do with our nations tendency to not save for the future. I believe it is important that we all study what this guy has to say.

The man who oversees all Federal spending of the United States does not think we are doing a very good job. In fact, he thinks we are doing such a poor job that our nation's future could be in severe danger. We have gone from zero debt during President Clinton's time in office to being deeply in debt today, with the future looking much worse.

The richest, most powerful nation on earth faces a fiscal "tsunami" which threatens to overwhelm Government and citizens alike.

He's pleading with US politicians and taxpayers to face up to the harsh economic realities that come with an ageing population AND spiraling budget deficits.

But is economic disaster really so close at hand? NO! But it will come if difficult choices are not made. I suggest you listen to what he has to say and carefully consider what needs to be done.

 

If you missed 60 Minutes on Sunday, March 4, you missed a good one.

U.S. Heading For Financial Trouble?
Comptroller Says Medicare Program Endangers Financial Stability

(CBS) When the stock market plunges like it did this week, everyone pays attention. The man you're about to meet says hardly anyone is paying attention to what really threatens our financial future. Like an Old Testament prophet, David Walker has been traveling the country, urging people to "wake up before it's too late."

But David Walker is no wild-eyed zealot. As Steve Kroft reports, David Walker is an accountant, the nation’s top accountant to be exact, the comptroller general of the United States. He has totaled up our government's income, liabilities, and future obligations and concluded the numbers simply don’t add up. And he’s not alone. Its been called the "dirty little secret everyone in Washington knows" – a set of financial truths so inconvenient that most elected officials don’t even want to talk about them, which is exactly why David Walker - - MORE

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You can watch and listen to the BBC program with America's Auditor -in-Chief, David Walker. Is America facing an economic disaster? My crude notes are below. . .

Baby boomers who are about to retire are going to cause much of these additional expenses. When we reformed medicare, an unfunded effort to make health care available to more people. The change will affect the younger people the most.

In his job he is independent of political parties and government pressures. He is on a ""trip'' to get people to think about making changes from focusing on today to thinking about tomorrow. He feels we are mortgaging the future of our children and grandchildren. The health care costs are five times greater than social security. Last year the U.S., had a negative savings rate for individuals - and add to that the deficit of the U.S. government. Now, other countries are bankrolling our debt as we are relying on others to pay for our excess consumption, we are getting in more and deeper trouble. We must look longer range so we are not so vulnerable. Our ability to react to danger, in the future, will be lessened because of this dangerous trend of debt.

At this point there is no presidential leadership of legislative support for change. We need bipartisan congressional support for wise change. We need executive leadership to encourage wise choices. What is important is to recognize the potential problem and prepare for corrective action.

We are NOT going to grow (financially) our way out of this problem. It just can't be done. No economist believes this.

The individual must get over the consumption mind set. The consequences are important and it is important that we reevaluate our values. That long standing tradition of children living better than their parents is in serious danger. We will have to reform all of our health care systems, our tax policy and social security. Over time we must restructure cutting spending, entitlements and enhancing revenues.

We have to recognize that "We The People" must collectively accept responsibility as individuals. We spend more than we make, and that adds fuel to this problem. This will take 20 plus years to get to where we need to be because we have a large and growing problem that must be addressed sooner rather than later.

You can watch and listen to the BBC program with America's Auditor -in-Chief, David Walker. Is America facing an economic disaster?

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WASHINGTON – The upbeat numbers the White House released Wednesday on the federal budget are good news, but not nearly good enough to make much of a difference in the country's long-term financial health.

Meanwhile, the Pentagon is doing a poor job keeping track of the billions of dollars it is spending in Iraq.

Those are the views of David Walker, Comptroller General of the United States. In that role, Walker serves as auditor of the government's financial statements. Read the whole story in the Christian Science Monitor

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SOCIAL SECURITY- Reform Proposals Could Have a Variety of Effects on Distribution of Benefits and Payroll Taxes

David M. Walker Biography

David M. Walker Bio. (Wikipedia)