Can the U.S. avoid bankruptcy?

This morning, Dan Spencer at wrote about how our country can avoid bankruptcy even as we hurdle closer to the fiscal cliff each day. Every American should read what Dan has to say and watch the excellent video that goes with it.

By Dan Spencer,

The Congress doesn’t cut spending and balance the budget because they can’t. Not even if they remove every department and employee including the military.

So says Hal Mason in the shocking accompanying video titled, “United States Budget Dilemma.”

President Obama, in his proposed Fiscal Year 2013 budget, would spend $3.8 trillion. But the federal government will only collect $2.5 trillion in taxes, resulting in a deficit of $1.3 trillion. That $1.3 trillion is an amount larger than Congress appropriates to operate the federal budget.

The problem is easily stated; spending on mandatory programs and interest is greater than taxes collected. According to Mason, in order to balance the budget, Congress would have to raise taxes 50 percent or eliminate the federal government.

Congress has failed to adequately address the problem by continuing raise the debt limit and borrow more and more until we now have a $16 Trillion national debt. $16 Trillion exceeds 100 percent of the nation’s gross domestic product and is 25 percent of the world’s gross domestic product. Worse the Democrat-controlled Senate hasn’t even passed a budget in over three years.

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Taxpayers Connected:

Our national debt is  
$ 00 00 , 000 000 , 000 000 , 000 000 , 000 000
and each American Taxpayer owes $119,236 of it.