Fiscal Deficit versus National Debt — What’s the Difference? Why Does It Matter?

And What Does James Madison Have to Do With All This?

I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations.
— James Madison

In order to NOT be taken advantage of by manipulating intellects that have been placed in positions of power and influence such as Obama and most of his administration, we have to constantly educate ourselves…

Only recently has the Left now blatantly admitted that Obama has gotten to where he is today by gradual and silent encroachments on our Constitution — the very warning Madison gave our country during his own lifetime.

Whether with or without their presence, educating ourselves is a great idea and our first line of defense to those that mean us harm — this administration however has made it critical and necessary to the survival of liberty.

The Fiscal deficit

Do know there is a HUGE difference between fiscal deficit and national debt

The fiscal deficit starts every fiscal year at zero and counts only the dollars spent beyond budget until the end of the fiscal year, then resets to zero on the new fiscal year…

Think of fiscal deficit as being how much you overcharge on your credit card — it goes away everytime you payoff of the overcharge, yes?

Only the government doesn’t pay off the overcharge, it rolls it into the national debt — with our money nonetheless…

National Debt

This is the total of all deficits for each administration since George Washington (basically, it is the sum of the fiscal deficits for each year — plus debts created for programs that are NOT in the fiscal deficit.

Surprised? Don’t be — they have been doing this for decades…

Our actual debt (be sure you are sitting) is more than 200 trillion as opposed to 18 trillion — the difference in the two has to do with the federal government’s not including unfunded liabilities for programs such as Medicare and Social Security in their funded liabilities.

When it comes to money a liability is a liability — it does not matter where it comes from, it still has to get paid, yes?

And guess who gets to pay this?

When Obama took office, the funded liability debt was 10.7 trillion…

Today? As of the publication of this post it is now at 18.1+ trillion…

Essentially, when all is accounted for, Obama has outspent more than ALL previous Presidents — George Washington to his predecessor George Bush.

Period.

Obama-misquote-on-deficit

Though in content correct, in context Obama’s deficits, especially with his first 3 years, are something he will avoid talking about, even when probed by reporters. federal deficit chart

What Does This Mean?

First, it means the reduction of the fiscal deficit is only a pat on the back — it is true that the deficit is down by 2/3rds since Obama took office, but he wants you to forget that the fiscal deficit he created in his first 3 years of office was almost 3.7 trillion…

2010 : 1.294 tln 2011 : 1.3 tln 2012 : 1.087 tln

with the following 4 years adding another 2 trillion

2013 : 680 bln 2014 : 493 bln 2015* : 583 bln 2016* : 474 bln
* budgeted

That’s 5.911 trillion in total fiscal deficit so far — OK, we know Obama loves to say he had to pull us out of Bush’s mess.

So… how messy was it?

2000 : -236.24 bln 2001 : -128.23 bln 2002 : 157.75 bln 2003 : 377.59 bln
2004 : 412.73 blb 2005 : 318.35 bln 2006 : 248.18 bln 2007 : 160.71 bln
2008 : 458.46 2009: 1412.69 bln
source for all fiscal deficits : www.usgovernmentspending.com

Total for Bush’s 8 years?

$3.18 trillion…

And it might have been lower in the last year if Bush had decided to use taxes to fund the wars instead of the deficit and national debt,,,

The sum of Bush’s fiscal deficits for his entire 8 years is still less than the sum of Obama’s first 3 years.

Now, back to that $18,100,000,000,000 (18.1 trillion)…

If you spent $1,000 a SECOND, that would still take more than 18,100,000,000 (18.1 billion) seconds to spend it all…

There are 31,557,600 seconds in one year (60 seconds x 60 minutes x 24 hours x 365.25 days / 1 year)…

So, how long is 18,100,000,000 (18.1 billion) seconds?

Well, at the time of this post being published, it is late

March 2015…

Providing any of the papal changes to the calendar are ignored, then 18,100,000,000 seconds ago our calendar would say it is

March 1441

That’s 10 years before Christopher Columbus was born…

That is how long, at spending $1000 every second non-stop since March 1441 until now, it would take to equal our current national debt in dollars spent

So what if we bring this to an easier level to understand, say $100 every second, then we are talking about

3720 B.C.

Let’s face it, either the monetary number or the time element is so huge in this equation we can’t get our heads around it all.

What Can We Buy With the Amount of the Current National Debt?

In the last 6 years, we could re-finance in total the following events that took 238 years to occur…

— American Revolution

— the War of 1812

— our civil war

— the Spanish American war

— World War I

— the FDR social programs of the Depression

— World War II

— nation rebuilding after WWII

— the building of our entire national highway system

— the Korean war

— the VietNam war

— all the wars and operations in the Middle East since 1989 to now

— the war and current operations in Afghanistan

Think about that — rebuilding  and funding ALL of the above in just 6 years…

And yet…

There would still be money left over to rebuild the

 —  Food Stamp Program

 — Welfare system

 — all failed (and a couple of successful) government bailouts

 — all government buyouts of this administration

 — Obamacare fiasco as well

 — retirement plans of all living Federal government officials (essentially doubling their already very lucrative retirement plans)…

Essentially this administration in the past 6 years has speed-up the entire spending of the past 238 years by nearly 40 times…

To see this in action, you can find real time government financial stats here: usdebtclock.org

Please note most of the very dynamic stats (those changing frequently) on this clock are estimated but they are verified frequently with government reports from the

and the

Our Political History Has Been Defined by 3 Crises

The first 2 endangerments the United States faced were with our Revolution from Great Britain, then our own civil war.

This 3rd crisis started with the Woodrow Wilson administration when Wilson literally rewrote the U.S. history textbooks used in our school system.

Not only did he rewrite the history textbooks, Wilson forced all schools to abandon the textbooks they had (which were based on original source documents) and replace it with his (which was his own personal feelings and political viewpoints).

Something very similar to what is going on today with ALL the schools textbooks, not just history [why should they? they have already been compromised]).

Wilson’s own personal feelings and political viewpoints does have a name — it is called Progressivism.

And the left loves to embrace Progressivism with an audacity that only amplifies their ignorance to those that have educated themselves as well as practice discernment.

Doesn’t mean all the educated won’t embrace Progressivism — it takes a level of discernment those on the Left won’t embrace.

For the scriptural curious, this is noted already in the Bible (all from the NIV version)…

“The heart of the wise inclines to the right, but the heart of the fool to the left.” — Ecclesiastes 10:2

“Whether you turn to the right or to the left, your ears will hear a voice behind you, saying, ‘This is the way; walk in it.'” — Isaiah 30:21

“Do not turn to the right or the left; keep your foot from evil.” — Proverbs 4:27

As for the value of discernment, we all know very wise 7 year olds and very foolish 70 years olds — as well as the other way around.

Discernment is caught, not taught — and it WILL challenge…

our character

our integrity

our beliefs…

You can’t sharpen a knife on a sponge, you need something hard as well as course to work the blade of the knife — discernment is no different…

If and when (it really should be when folks, seriously….) you read ANY history books printed before Wilson’s Presidency, you may not recognize it — thank God Progressivism isn’t very good at cleaning up after themselves…

return to the top

James_Madison

I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations.
— James Madison
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