Thursday, October 17, 2013

Debt Deal Keeps Us On Depression Course, Says Author


Congratulations to Congress and the White House for finally doing their job and settling the debt ceiling crisis. But did they really settle anything at all? In the short-term they averted a default but pushed that date back only a few months for yet another showdown. In the long-term, they did nothing but allow for more debt to pile up on top of an insurmountable sum. One of my clients at Media Connect, author Murray Holland, lays out what you need to know and do about the national debt in his new book, A Nation in the Red, due out by McGraw Hill in a little over a week.

“My book is a call to action by citizens of the United States to save the country from the economic train wreck being imposed on us by Congress,” says holland. “Every mom and dad, especially those with children who are in their teens, twenties and thirties, should become aware of the economic future that excess debt will bring the rising generation, because it is that generation that will bear the burden of Congressional dysfunction for the next decades.”

The staggering debt burden (we bleed $1.7 billion daily)  that Congress has placed on the United States citizens and economy will soon surface as the greatest threat to the country. The burden has been masked by the lowest interest rates in the history of the country and will be exposed by rising rates, as either the economy recovers or investors assess the risk as higher than advertised.

Holland, managing director of Dallas-based MHT Partners, LP, with over three decades of experience working in the finance industry, tells us about the real debt crisis that he has uncovered through exhaustive analysis and research for his new book. .

The crisis is not about what is happening today. It is about tomorrow. He reveals the following:
·         How large our debt really is – and is heading to be: It is far worse than previous calculations or projections – the correct number is $19 trillion and may well be over $31 trillion by 2022..
·         What the debt truly means to individuals, businesses, and the nation -- and takes us through the  devastation a debt out of control can unleash on the economy and individually.
·         How individuals and businesses can actually contribute to the solution – and how to best insulate themselves from a looming depression if Congress fails to act.
·         Why just a small increase in the interest rate -- which is bound to happen given the 50-year average is an annual rate of 6%  -- will more than double the amount of interest paid, and why that amount will swallow 25% of our tax revenue.
·         Why the U.S. has, out of 183 nations, the 9th worst debt-to-GDP ratio – and why only two nations that have ever had a ratio worse than our 121% -- averted a depression (but most experience a depression like Greece, Portugal, and Spain or long-term recessions like Japan, France and Italy).
·         There are only five options for countries with our level of debt-- and then recommends his strongest, viable solution – and even that will take over 30 years to unfold in order to get us back to where we were five years ago.
·         What the Federal Reserve must do – including its new chief – to steer the country properly.

Holland wrote the book to get a dialogue going so for the nation to take responsibility of this impending danger. It is his call to action. “Most people do not have a clue what is going on and how the national debt hurts the economy. Congress thinks “it cannot happen here” but it can and will. The laws of economics are immutable, like the laws of physics. Congress cannot legislate around them.” He started to conduct research in wanting to know the impact of the national debt on his investments. He wrote it like he would an investment banking study. He ended up spending over three years researching the history of government defaults, what governments in the past and present do when they find themselves in the debt trap the U.S. has entered, how they got into the mess and what affect government debt has on the country’s economy and currency.

“The true debt of the U.S. – right now – is over 19 trillion and not the stated 17 trillion,” says Holland. “The government does not consider the unfunded pension liability to federal workers a liability, but the finance world does.”  Federal debt to third parties will hit 30 trillion in 2022 – just nine short years from now. We need to learn from Europe and from history – and avoid a default or currency folly. There are only a few options to get out of the trap, but only one leads us to where we need to be.”

Social Security, pension funds, healthcare mandates and other government obligations in the coming years amount to tens of trillions of dollars. Can the U.S. escape the debt trap? Holland provides a doomsday scenario based on where the facts have led him, but he holds out the possibility for a solution – if America has the political will and fiscal discipline to enact it.

“Make no mistake,” concludes Holland. “We are on a collision course with our spiraling debt and if we don’t jumpstart corrective action now, the U.S. will be heaped upon the large pile of failed countries: failed because of a blatant disregard of basic economics. What we need now is leadership and courage to fix these problems.”

This is a call to action to save our country. Every concerned mom and dad should become educated and lead by discussion within their families, schools and businesses. For more information and a thorough economic and currency resources section, you can consult

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Brian Feinblum’s views, opinions, and ideas expressed in this blog are his alone and not that of his employer, Media Connect, the nation’s largest book promoter. You can follow him on Twitter @theprexpert and email him at He feels more important when discussed in the third-person. This is copyrighted by BookMarketingBuzzBlog © 2013

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