Our biggest financial problems are still ahead

I write this out of fear for my country.  As anyone my age may remember the British Sterling was the money standard for the world for years.  In the 70's the liberal Parliament decided that they needed to spread the wealth around similar to what has happened here and the financial strength of the pound went south eventually being devalued by 14%.  This sent the entire economy of the British into chaos.  Interest rates soared, jobs were lost and the Sterling was replaced by the U.S. dollar as the world economy went into a spin.  Right now China, Russia, Japan, Korea and several Arab countries have challenged the value of our dollar because of the amount of new money we are printing in order to pay our outstanding debts.  Once the dollar is no longer considered the world currency standard our treasury will be forced to quit augmenting our debt with its printing press and we will be facing our monumental world debt head on.  The number that is being bandied around in the press is $17 Trillion when if you include the total responsibility for debt that the United States is under it will amount to closer to $35 Trillion with just the Social Security, Fanny Mae and Freddie Mac losses, public employees union benefits on top of the world debt accumulations.

Right now our interest rates are being artificially held down by the Fed to anywhere from 0% to .25%.  Should this be stopped by the loss of status as the world moves to remove our currency from this position and the interest rates go to market levels we will be in a disaster that will make 2008 look like fun.  No longer having the opportunity to print our way out of debt our obligations will soar as interest rates climb.  Just a 4% rate will bring our debt to the level of well over $60 Trillion if paid over a standard 30 year amortization.  That is if we stop immediately over spending and reduce our annual spending to match our gross income.  The United States has reach the point of no return prophesized in 1776 when it was said that when the people of America realize they can vote themselves benefits from the treasury, they will, and it will soon deplete the reserve required to continue.   We have now reached the point where over 50% are now on some type of governmental assistance leaving few to replenish the pot of gold that was America.  Every year we are asked to raise our debt ceiling and have been told it is an inconsequential necessity to continue our way of life.  I don't know about you but in my family we can't seem to do that, we are forced to pay our bills out of what we earn and when the government takes more and more of what we earn we are forced to lower our standard of living. It's time to stop this folly and face the crisis we have created or our children's children will have nothing left to live for.