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Defining the difference between National Debt and the Federal Budget deficit and looking at God's principle of having to harvest what has grown from what has been sown are the reasons for writing this blog.
It has become very tiring to me to hear people say that when Bill Clinton left office the United States had a budget surplus. Through this line of thinking, George W. Bush would be fully responsible for the 9 trillion 986 billion dollar National Debt that the US (thus the American people) had at the end of 2008. This, of course, is not true. Many people do not understand the big difference between National Debt and the Federal Budget deficit (or rarely surplus).
1) The National Debt is the total amount of money owed by the government.
2) The Federal Budget deficit is the yearly amount by which spending exceeds revenue.
When you add up the yearly budget deficits and subtract out the rare budget surpluses for the past 200 years you get the current National Debt. At the end of 2009 the National Debt has been estimated to have grown to nearly 12 trillion 868 billion (Stats from Wikipedia Online Encyclopedia).
Politicians love to brag when "the deficit is down," All reducing the deficit means is that less is being added to the National Debt that particular year than what was added to the National Debt the previous year. Far more often than not, the US annually adds to its National Debt.
A few National Debt Stats:
1910 Gross National Debt 2.6 billion
1950 Gross National Debt 257.4 billion
1980 Gross National Debt 290.5 billion
1990 Gross National Debt 3 trillion 207 billion
2000 Gross National Debt 5 trillion 629 billion
2005 Gross National Debt 7 trillion 905 billion
2008 Gross National Debt 9 trillion 986 billion
2009 Gross National Debt 12 trillion 868 billion (estimated)
(largest increase ever - an increase of nearly 2.9 trillion dollars in one year)
Of this National Debt, foreign owners of US Treasury Securities (as of September 2009) hold a total of 3 trillion 428 billion (over 26% of our total National Debt). China owns nearly 800 billion followed closely by Japan at 752 billion and next the United Kingdom at 250 billion on down to Australia that owns 10 billion.
I am not sure what recent news program I was watching, but the gold standard was mentioned, basically a point was reached where the gold reserve could no longer backup the National Debt. Congress voted to allow deficit spending and a National Debt limit was established. The United States Congress has raised the debt limit a number of times in recent years. On February 17, 2009, the debt limit was raised to 12 trillion 104 billion. The deficit for 2009 puts the National Debt over that legislated limit. Congress must again increase the debt limit in order to continue to operate!!
(Our gold reserves total 261.5 million troy ounces with a book value as of November 30, 2009, of approximately 11 billion versus a commodity value as of December 17, 2009, of approximately 288.5 billion. From Wikipedia Online Encyclopedia)
When I heard mentioned the end of the gold standard and discussion on the approval of deficit spending, my eyes opened wide and God's principle of sowing and reaping just leaped out at me. You know, the United States was established as a Christian nation based on God's principles. What happened? In terms of the National Debt, whose principle have we so blatantly chosen to violate?
Be not deceived, God is not mocked: for whatsoever a man soweth, that shall he also reap. For he that soweth to the flesh reap corruption . . . Galatians 6:7-8
The United States is continually sowing deficit spending, thus growing the Natioanl Debt and at times of harvest yields great financial woes with its variety of damaging consequences.
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