Budget Panel: $14 Trillion Debt Destroying US Like 'Cancer From Within'

The leaders of President Obama’s own debt commission say that his administration cannot tax and spend their way out of the problem. At present, available federal revenues are fully consumed by just three programs: Social Security, Medicare and Medicaid. The rest of the federal government is being financed by China and other nations.

Republican Alan Simpson and Democrat Erskine Bowles told a meeting of the National Governors Association that everything needs to be considered — including curtailing popular tax breaks, such as the home mortgage deduction, and instituting a financial trigger mechanism for gaining Medicare coverage.

The nation's total federal debt next year is expected to exceed $14 trillion — about $47,000 for every U.S. resident.

Bowles said if the U.S. makes no changes it will be spending $2 trillion by 2020 just for interest on the national debt.

"Just think about that: All that money, going somewhere else, to create jobs and opportunity somewhere else," he said.

[Yes-- we've been thinking about it for some time now-- Editor]

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(The report: http://www.fiscalcommission.gov/