Quotes & Sayings About Federal Debt

In the distance, I see a frightful storm brewing in the form of un-tethered government debt. I choose the words -frightful storm' - deliberately to avoid hyperbole. Unless we take steps to deal with it, the long-term fiscal situation of the federal government will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets that we are working right now so hard to correct. — Richard W. Fisher

The dollar represents a one dollar debt to the Federal Reserve System. The Federal Reserve Banks create money out of thin air to buy Government Bonds from the U.S. Treasury ... and has created out of nothing a ... debt which the American people are obliged to pay with interest. — Wright Patman

As boom- and bust-prone as high finance always has been and remains, the greatest systemic risk to our economy is not Wall Street It's the growing federal debt (and weakening dollar) being enacted by those Washington politicians - the ones who want to protect us from Wall Street. — Tony Blankley

Although federal revenues nearly doubled during the Reagan years, federal spending far exceeded that pace and drove the national debt from $909 billion to $2.6 trillion between 1980 and 1988, by far the highest it had ever been. — Douglas Brinkley

Fannie Mae is owned by shareholders but operates under a federal charter that exempts it from paying state or local taxes. As a result, many professional investors think the government would repay the debt that Fannie Mae had issued if the company could not, although Fannie Mae explicitly says that its bonds do not carry a federal guarantee. — Alex Berenson

100% of what is collected is absorbed solely by interest on the Federal Debt ... all individual income tax revenues are gone before one nickel is spent on the services taxpayers expect from government. — Ronald Reagan

Every American born today owes $43,000 to the federal government the day she or he is born. And we are transferring a tremendous amount of debt to the new generation, much of it owed to overseas creditors who expect to be repaid by our children with interest. — Mark Kirk

One of the advantages of living in a constitutional federal republic
is that we have the ability, if not the duty, as citizens to repair or
replace those acts of legislation under which we have agreed to live.
We must act when it has become evident that said legislation
no longer serves us as a people or advances the principles upon
which this nation was founded, one of these being "the pursuit of
happiness," which may only be secured through wealth creation.
If it burdens the debt obligation of the government, it cannot
be creating wealth. If it does not advance the cause of regaining
American competitive dominance in the global marketplace, it is not
creating wealth. If legislation and regulation were proposed that
taught people how to fish instead of providing fish, then the unemployed
would find a way to create jobs for each other. Wealth
creation is mankind's natural objective when given the opportunity
and the tools. — Ziad K. Abdelnour

The problems of 2008 were never cured. The Federal Reserve's solution to the crisis was to lend the economy enough money to borrow its way out of debt. It thought that if it could subsidize banks lending homeowners enough money to buy houses from people who are defaulting, then the bank balance sheets would end up okay. — Michael Hudson

Mr. Obama plans to boost federal spending 25 percent while nearly tripling the national debt over 10 years. Americans know that this kind of spending will have economic consequences, including new taxes being imposed by the new progressives. — Karl Rove

Once our country is fully engulfed in a debt crisis, our economy will be torn apart, and every American will be a victim of the federal government's failure to prevent this disaster. — Kevin McCarthy

Jefferson feared that Hamilton had plans radically at odds with the Constitution. As he saw it, Hamilton wanted to warp the federal government out of constitutional shape, converting it into a copy of the British government, built on debt, corruption, and influence. Hamilton's goal, Jefferson charged, was to ally the rich and well born with the government at the people's expense, creating a corrupt aristocracy leagued with the government against the people and destroying the virtue that was the basis of republican government. Only a republic could preserve liberty, Jefferson insisted, and only virtue among the people could preserve a republic. — R.B. Bernstein

This nation is on a course where if we don't do something about it, get federal situation, the fiscal policy [under control], we're Greece. We're a banana republic. Our status as a nation is threatened by what we've got coming at us in the area of deficit and debt. And it's only a few more years, at the most, that we have to work with here before the market says, 'Sorry, your currency is something we can not continue to defend.' — Judd Gregg

Well, the problem of the federal government is that they print money and go in debt. That's their national policy, Democrats and Republicans it doesn't matter. And this is where I differ. — Richard M. Daley

The bailout of Fannie Mae is completely off the books. It's going to cost us hundreds of billions of dollars. Yet nobody is placing this in any type of column in accounting for federal debt. — Leonard Lance

From the Left comes the proposition that, given the slow economy, we should defer attending to the problem of mounting obligations - and the truly delusional idea that growing federal debt doesn't matter because we owe most of it to ourselves. — Steven Rattner

The federal government ... announced a plan to spend, like, a trillion of taxpayer dollars to buy out bad mortgages and debt. Wall Street was surprisingly enthusiastic about the plan to save their (butts) with other peoples' money. It was either that, or Sarah Palin's idea to sell it all on eBay. — Bill Maher

State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don't know is whether that order will be enforced. And ultimately, the busted state is going to be looking to the federal government for a bailout. Think Greece, but on a much bigger scale. — Eugene Fama

The Federal Reserve will not monetize the debt. — Ben Bernanke

The federal government is far larger than the Founding Fathers ever intended it to be. We have racked up over $16 trillion of debt through wasteful spending, and it is time that we cut that waste and start reducing the size of our government. — Matt Salmon

In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply. — John Kenneth Galbraith

I think we ought to ban earmarks. I think we ought to give citizens the opportunity to designate up to 10 percent of their federal income tax toward debt reduction. If we did that, we would reduce our debt by $95 billion a year. — Carly Fiorina

Think of renovating a house like operating the federal government. You start with a budget and the revenue to finance it. Then the special interests keep adding items to the list; you have to end the war between the interior decorator and the electrician, so you pump in more money to buy peace; and by the time you're done, you're $16 trillion in debt and having to borrow money from the Chinese. — Billy Crystal

What would you think of a person who earned $24,000 a year but spent $35,000? Suppose on top of that, he was already $170,000 in debt. You'd tell him to get his act together - stop spending so much or he'd destroy his family, impoverish his kids and wreck their future. Of course, no individual could live so irresponsibly for long. But tack on eight more zeroes to that budget and you have the checkbook for our out-of-control, big-spending federal government. — John Stossel

To avoid the necessity of a permanent debt and its inevitable consequences, I have advocated and endeavored to carry into effect the policy of confining the appropriations for the public service to such objects only as are clearly with the constitutional authority of the Federal Government. — Martin Van Buren

If the US Government was a family - they would be making $58,000 a year, spending $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand. — Dave Ramsey

The federal debt in this country is principally of Republican design. — Daniel Keys Moran

Lending dollars to the U.S. government is essentially riskless because the U.S. government can always pay such debts. If necessary, the Federal Reserve can print dollars to pay the debt. — Anat Admati

Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you'll always be able to buy more food with your gold. — Peter Schiff

The recession, which started in 2007, is ongoing. The
underlying fundamental causes of the meltdown have not been
addressed. Banks are still not lending. Companies are still not hiring.
Congress has still not seriously addressed the growing debt. Neither
has Congress checked its own out-of-control spending. The much
lauded reforms installed by Frank-Dodd are nothing more than another
expansion of federal government control over the engines of wealth
creation. — Ziad K. Abdelnour

When you talk about raising that debt limit, the only way that I would ever support raising the debt limit if we also talk about budgetary controls on the federal government, capping its spending, how do we deal with the Social Security, Medicare and Medicaid problems, because they cannot continue to run on auto-pilot. — Allen West

Freddie Mac and Fannie Mae, although they're not officially debt of the federal government, they are off-balance-sheet debt. — John Thune

Since there is no orderly way to liquidate the federal debt, we must brace for a payment crisis. — Hans F. Sennholz

President Obama has ignored or dismissed proposals that would address our anti-competitive tax code and unsustainable trajectory of federal debt - including his own bipartisan National Commission on Fiscal Responsibility and Reform - and submitted no plan for entitlement reform. — Glenn Hubbard

Currently we're suffering from the fear instilled into Americans that another 9/11 is just around the corner. We've also been brainwashed into believing the Federal Reserve just saved us from a total financial collapse in the past seven years even though the Fed was one of the most important causes of the crisis. To deal with the threats of another attack and another financial crisis we are expected to complacently accept endless spending, endless debt, endless bailouts, endless inflation by the Federal Reserve, endless spending by the Congress, and even endless war. — Ron Paul

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget. — Matt Taibbi

In time of peace there can, at all events, be no justification for the creation of a permanent debt by the Federal Government. Its limited range of constitutional duties may certainly under such circumstances be performed without such a resort. — Martin Van Buren

For the same reason a disease cannot be cured by more of the germ that caused it, the inflation and debt accumulation of the Obama years will not inflate our way out of it. — Ron Paul

Every generation has an obligation to leave its children in a better position than it inherited. Our representatives in Washington are breaking faith with that covenant. America must reduce its federal spending and accumulation of debt for the sake of generations to come. — David Malpass

The first task of the Federal Reserve system would be to finance the World War. The European nations were already bankrupt, because they had maintained large standing armies for almost fifty years, a situation created by their own central banks, and therefore they could not finance a war. A central bank always imposes a tremendous burden on the nation for "rearmament" and "defense", in order to create inextinguishable debt, simultaneously creating a military dictatorship and enslaving the people to pay the "interest" on the debt which the bankers have artificially created. — Eustace Mullins

Hamilton used the sinking fund to maintain the confidence of creditors in the government's securities; he had no intention of paying off the outstanding principal of the debt. Retiring the debt would only destroy its usefulness as money and as a means of attaching investors to the federal government. — Gordon S. Wood

It would mean a continuation of his relentless expansion of federal government power; more explosive increases in his crushing, multitrillion-dollar inter-generational debt; a weak foreign policy coupled with his evisceration of America's military; and the likelihood that more Obama-appointed Supreme Court justices would assure a left-leaning majority on America's top court for at least a generation. — Aaron Klein

Let's look at the amounts involved.5 When George W. Bush left office, the federal debt was $9 trillion. That's a huge amount, and Bush added nearly $4 trillion to the total, a disgraceful legacy caused primarily by profligate domestic spending and foreign wars. Bush's second term deficits averaged around $500 billion. But still, the $9 trillion represented America's entire debt accumulated from the founding through 2008. Now, under Obama, the federal debt is $18.5 trillion. It's larger than America's gross domestic product which is around $17 trillion. The debt will be over $19 trillion when Obama leaves office. While progressives professed to be scandalized by Bush's $500 billion deficits, they have remained silent while Obama racks up trillion-dollar deficits. — Dinesh D'Souza

Ron Paul's crazy talk about the Federal Reserve makes more sense these days. Right now, every - all this debt issued by the United States people assume the Chinese are buying, no they don't want any more American debt. Ron Paul has a point there. — Mark Steyn

Students can spend their money better than government can. It should not require a federal loan and decades of debt for students to get a college degree. Price limits access - plain and simple. — Rick Scott

It defies logic that protections against predatory debt collection practices don't apply to debt collectors hired by the federal government. — Cory Booker