How will the US start to pay off its debt or at least balance its budget?

Question

Over spending is continuing and everyone is talking about tax cuts?

What should the US do to get a balance budget and start paying off some of the debt before it chokes the economy.

Shrink military? Government? Medicare? Social security? Foreign aid packages? wars?

Or everyones favorite, raise taxes.

Answer 1

This is an economics question for which I will gladly give my opinion.

As you know, Ron Paul wants to re-introduce "Sound" American money back into everyday use.

What Is Sound Money?

Sound money is simply a form of money that is considered more valuable than money that recieves its value from government statistics, usually some form of Gold/Silver money.

Most Americans have no idea that an alternet type of money, is "NOT" illegal.

http://en.wikipedia.org/wiki/Gresham's_Law

[excerpt] "All modern money is "bad money" in this sense, since fiat money has entirely replaced the commodity money to which Gresham's law applies. The ubiquity of fiat money could indeed be taken as evidence for the truth of Gresham's law."

This is an example of an alternet form of payment system:

http://www.goldmoney.com/

The theory is, if a currency flucuates in value too much {Canadian vs American dollars} somebody is going to get the short end of an over the border financial deal which could cause substantial loss to a producer.

To stabalize trade with each other and worldwide, the American founders very wise-ly included in the Constitution, the use of only Gold/Silver, which has universal value derived at by supply and demand, not government controlled central bank decree, in commerce.

The theory is, once honest businessmen begin to use a more sound type of payment system en-masse, the fiat American dollar would become almost worthless, such as what has happened with the American Greenback dollar, the Continental dollar, and the German Mark after WW 1.

Example only:
If one unit of Gold weighing 1 gram {31.1034 grams in an ounce} equals say $10,000 in government issued fiat dollars,,,,,,it wouldn't take very long to retire "ALL" U.S. government dollar debt incurred,,,,which is an unecessary burden on future American un-born producers of real wealth, through government mandated taxation.
Thank you.
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[Up to the minute addition:]

http://www.thestar.com/News/article/275023

One presidential candidate is issuing a clarion call about the dollar's value – insurgent Republican Ron Paul, the Texas congressman who raised $4.2 million for his campaign in a single day this week.

"The dollar is on the ropes," he said in a television interview.

"Washington is sound asleep about this dollar and understanding about how the financial system works."
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Answer 2

The scare tactics some people are using are simply amazing. The national debt does not have to be paid off in one year, or ten years. Yes, it should be controlled, and in prosperity years slowly reduced. The numbers that a certain network shows is misleading. The 14 trillion dollar national debt contains about 6 trillion that was borrowed from other government funds. Eventually those funds should be replaced by not immediately. The numbers they show how much an individual would have to pay misleads the reader that it has to be done in one year. The bonds and notes that make up the 8 trillion dollar debt could have a maturity date up to 30 years. As far as paying without borrowing, you should know as a CPA about inflation, especially hyper inflation.

Answer 3

Only thing I chose to add is "The Mother of all Tax Bills" is coming down the pike from the Democrats. Republican's are touting it as a coup already for our side. I think it's the mother of a tax increases... so, from what I read ideas were to levy a higher income tax and raise taxes across the board. The taxing of such luxury items like cigarettes and so on usually take hits.

Personally cut government waste and over spending as in pork barrel fat would make numbers more realistic. That's why I am leaning John McCain. That and his war record that given the turbulence in the Middle East he is the man to resolve the matters with less harm to American's and the world. Thanks.

Answer 4

By electing Ron Paul. We need to change our foreign policy, return to Constitutional government, which means restricting government to only the powers it is authorized in the Constitution.

We need to abolish the Federal Reserve and return to hard money: gold and silver. I know this is a radical concept; Constitutional government. This is how we operated prior to 1913. The U.S. was the showplace of the world. Everyone wanted to come here. Today, our politicians have made us the most hated nation on the face of the Earth. We are identified with such atrocities as Abu Ghraib and Guantanomo. The are building a police state at home "to protect us from terrorism", the terrorism that they have brought to our shores.

Ron Paul stands for Peace, Prosperity and above all, FREEDOM. The other candidates all stand for tyranny, economic ruin and perpetural undeclared wars around the globe.

Ron Paul in 2008.

Answer 5

It won't happen, but the first thing that needs to go is our current Congress. They all need to be thrown out and replaced with Representatives who understand the direction our country is headed...straight down.

Then, most federal government agencies need to be shuttered and their missions returned to the states, where they belong by law. Taxing and spending then becomes more local and officeholders more accountable and government more fiscally responsible.

*POOF* No more IRS or usurious federal taxation. No more dept of education/labor/HUD/transportation/commerce/etc.

Consequently, no more debt or inflation or worry about a balanced budget and no more empire building by our elected Congress, who are getting rich along with their friends and bribers.

Answer 6

Shrink government and reduce corporate welfare. The rich on spend 17% of their income whereas the poor and middle class pay 35%. Let the rich shoulder the burden.

Answer 7

first quit printing money. Then cut back. Seems like this admin mirroring Reagan and different scenario. Funny if we drive it way up and then punt, what could they do? We give to everybody and china undercutting our prices by 40%, if they call in chips, bad situation.

Answer 8

they need to raise taxes and tackle this huge debt that we have (9 trillion dollars!!!) and build our econemy back up. place more taxes on imports so we can have a stronger economy and people will make more money. what is wrong with these politicians?!?

Answer 9

Pull out of Iraq.