The Most Important Public Policy That isn't Getting Attention

Financial Titans Volcker and Petersen say “tisk tisk” to the American people and call upon our president-elect to make tough choices shift the dangerous trajectory of our national debt.

We now know that Donald Trump has won the presidency and whether you voted for him or not, this broken system has been passed down to him and it is therefore, on him to make moves to fix it. The rising national debt has been a problem for a long time, and the lack of attention it is paid is why we are where we are today. “There is still time to solve this problem. But our next president needs to show leadership in the first months”i no matter how unpopular it is.

Paul Volcker and Peter Petersen are two of the oldest and most well respected financial experts in the world. Their op-ed in the New York Times, prior to the November 8 election, outlined the dangerous waters we are treading when it comes to our Federal Debt. They also discuss the fact that no one seems to be paying it much attention, since talking about real issues and the unpleasant things that need to be done in order to fix them will NOT get you elected president in this country, no matter which side of the aisle you’re on. Volcker, speaking prior to the election says, “Nothing serious was touched upon in the debate, but then again the American people no longer care about serious things. Instead they are far more fascinated by whether Trump is a Putin spy, or if Hillary will revert to the TPP (Trans Pacific Partnership) as soon as she becomes president and the next check from Malaysia clears.”ii

So what is the reality of the national debt? It has grown by $9.2 trillion dollars in the last 8 years (75% of the Gross Domestic Product) and is slated to rise dramatically over the course of the next decade. That is, unless our President-Elect can make very unpopular decisions about our entitlement programs also referred to as the “untouchable third rail”. Because that is what is required to make any shift from our mid-century trajectory of a national debt that is 140% of our Gross Domestic Product.

National Debt

In this article there is further and more detailed explanation of our national debt crisis, what needs to be done to fix it and why the first answer is most definitely NOT to raise interest rates.

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i. http://www.zerohedge.com/news/2016-10-23/paul-volcker-explains-why-fed-cant-raise-rates
ii. http://www.zerohedge.com/news/2016-10-23/paul-volcker-explains-why-fed-cant-raise-rates
iii. http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/20/Total%20Debt%202016_0.jpg


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