‘I Would Argue That the Most Serious Threat to the United States is Our Own Fiscal Irresponsibility’

“Premier Wen Jiabao is worried about the amount of debt that the United States owes China”, which is probably why “China has quietly almost doubled its gold reserves to become the world’s fifth-biggest holder of the precious metal.” As well, “five major trading cities have got the nod from the central government to use the yuan in overseas trade settlement — seen as one more step in China’s recent moves to expand the use of its currency globally.”

When America’s top accountant, US Comptroller General and head of the GAO, David M. Walker resigned in 2008, the US national debt at the beginning of the year was $9.2 trillion. As of 2 May 2009 this debt is now over $11 trillion. These numbers, however, are a little misleading. The American public is largely unaware that the true deficit of the federal government is in fact “$65.5 trillion in total obligations”, exceeding the gross domestic product of the world.

The following 2008 documentary I.O.U.S.A. — One Nation. Under Debt. In Stress does an excellent job explaining why the current fiscal policy in the United States is unsustainable, and recommends some very painful solutions to resolve the problem.