The Importance Of Debt In The United States

As Kanye West announced his $53 million of debt recently, people wonder how someone so famous and powerful can get into such extreme deficit. They ask how someone making so much money can still fall into such a grave economic situation. His debt is the result of excess spending and lack of enough investment and income. This is the case with the U.S. government today as it passes $19 trillion. The U.S. has recently been through war and a recession causing debt to accumulate, if the United States doesn’t take action through the creation of citizen and company funded trust to reinvigorate the economy to pay off the interest, it will be forced to default on loans and cause mandatory government services to shut down. The United States debt has …show more content…
There are approximately 150MM tax filers in the US, if each person were to donate $3,000, that would raise almost half, $450Bn. Now clearly not every filer has the means to contribute that amount. This is again where leadership comes in, the wealthier among Americans should lead and donate as much as possible to cover those who cannot pay in. Mr. Buffet wants his taxes raised, instead, he can donate what he feels in necessary to help the U.S. US corporations can produce most of the funds. US corporates are sitting on record funds. Cash in overseas accounts that has not been repatriated (due to high US tax rates) is estimated to be in the trillion dollar range, allowing that money to come back into the U.S. tax free so long as 20% goes into the patriot fund. If $500 Billion to $600 billion of cash comes back, that would result in $100 billion being added to the fund. The U.S. can also sell off assets for the fund. The U.S. has gold reserves in the $500 billion range, perhaps 20% of that, or another $100 billion, could be used towards the Patriot Fund. This idea isn't anything new, the government has tapped the Strategic Petroleum Reserve in times of market stress. Patriot Fund investors would receive the following benefits to assure safety to them and their assets. The use of the proceeds that are invested in the Patriot Fund would be guaranteed to reduce debt on a dollar for dollar basis. A minimum of $600Bn must be raised or all proceeds would be returned. A new Balanced Budget Amendment must be signed into law prior to proceeds being released. No federal taxes would be increased for a minimum of two years. An independent Board will have oversight of and administer the Fund to reduce corruption