With the government leading the debt parade and citizens falling in line, the borrow-and-spend cycle has stained the democratic way of life we champion, with the red ink of the "democredit" way we live - and it is eating away at the foundations of a great nation.

The Warning Signs are Unmistakable

Like a family that spends far more than it earns, or consumes far more than it produces, the warning signs are unmistakable: In the last quarter century, to pay for our mounting obligations, the U. S. has gone from being the world's largest creditor nation to the largest debtor nation, borrowing heavily from foreign countries to stay afloat. Sadly, we are now forced to rely on the "kindness of strangers" at a time in history when conflicting monetary and political interests, even terrorism, tell us it's not wise to rely on this economic lifeboat much longer.

Ignoring the numbers won't make them go away. The U.S. now is dependent on foreign governments to the tune of more than $50 billion dollars per month. The U.S. Treasury's Bureau of the Public Debt has grown to almost 8.5 trillion dollars. Who owes this money, more than $28,000 per person or $113,000 for a family of four? We do, and sooner or later we'll have to pay - by way of higher taxes, or worse, through runaway inflation that could virtually confiscate the savings of retirement-age Americans and blight the financial futures of an entire nation.

Aren't we getting tired of all this gloom and doom? Haven't we heard enough about "unsustainable" budget and trade deficits, the housing bubble, the tidal wave of credit card debt, the endangered middle class, and the negative 0.5% savings rate of Americans last year - the first time that's happened since the Great Depression? Maybe we haven't heard enough. Maybe we need to pay closer attention to the growing number of economists who see our nation's mind-blowing balance sheet and cry out to all who will hear: "batten down the hatches, prepare for rough waters ahead!"

While no one knows with certainty what's in store for the U. S. or world economy, and if our day of economic reckoning is imminent, one thing is certain: While the government hasn't been able to restrain its credit compulsion, we must control ours. We must each take responsibility for our financial futures.

Heeding the Words of a Founding Father

As citizens of a free country, we can choose to use credit sensibly, reduce our debt, and live within our means. None of us is compelled to follow the government's lead and the "democredit" way, Rather, we can build a bright future of true financial freedom, inspired by the words of Benjamin Franklin, "Think what you do when you go into debt, you give to another power over your liberty." These are wise words to recall, indeed, as we face the terror within our borders.

- Walter Burch, Editor-in-Chief, CreditLearningCenter.com

CreditLearningCenter.com's mission is to become the most trusted name and resource in the area of credit, consumer finance, and identity theft education. CreditLearningCenter.com advocates the wise use of credit through educational audio and video features as well as written content to help consumers understand the importance of using, managing, and protecting credit. For more information, please contact media@creditlearningcenter.com or call (818) 717-9397.

-- Posted Thursday, 5 October 2006 | Digg This Article