I often hear the question, "If the United States is in such bad economic shape then why has the rest of world lent us so much money over the years? Why have they allowed our debts to grow so large?"
The reason this has happened is because the United States used to be the greatest economy in the world. I would argue that between 1900-1960, we were the greatest economy in history. We set up a capitalist framework that allowed business to flourish. We had freedoms that no other country could match, and we were the world's producers and savers.
Most people probably do not remember, but in the 1950's we were the Saudi Arabia of the world when it came to oil production and exports. We were the largest producers of all manufactured goods. We worked extremely hard, and we built an incredible economic machine.
However, since the late 1950's we have been in a constant state of decline. It has not appeared that way on the surface, but underneath our rosy picture today is only cobwebs.
This happens to just about anything that reaches its peak. An athlete that becomes the best in the world has trouble waking up every morning and continuing to push himself to be better. A company that becomes dominant in a particular industry usually begins to relax and enjoy their prominence. They spend less time focusing on profit margins and growth, and more time working on company vacations.
The reason we have been able to borrow this much money is because we were once so great.
Microsoft and Berkshire Hathaway, which are run by Bill Gates and Warren Buffett, could make bad business decisions for many, many years before a creditor would stop lending them money.
The baby boomer generation and my generation have been allowed to live off the work of our previous generations. Instead of waking up every morning hungry, trying to push our economy further ahead of everyone else around the world, we have gone on vacation. We have decided that instead of working and saving to buy the things we need, we will borrow today and pay it back later.
The baby boomer's retirement has already been spent, it has already been enjoyed. Now there is nothing left except the bill.
The total bill today after the spending to "save" our financial waste companies is now over $100 trillion by some estimates.
This means that my generation and my children's generation have to sacrifice over $100 trillion in consumption and enjoyment in order to pay back the money.
Unfortunately for me, I did not spend any of that money. I did not buy a house 100% financed. I do not have thousands of dollars in credit card debt.
All I have is a bill that has been handed to me.
Here is the interesting part:
My generation and their children do not have to stay in this country and pay the bill. Fortunately for America, most younger people today have no idea how much trouble we are in.
Every week I hear more and more frightening plans and schemes coming from Obama and his team of mass destruction.
Every week I have to ask myself if this a country I want to live in? More importantly, is this a country that my children will have the best opportunity in?
I think more and more of my generation is waking up every morning with this thought. If they decide that they do not want to sacrifice to pay Obama's bills, then the only man left to pay them is Mr. Bernanke. Fortunately, he has enough money for everyone.