The Debt Bomb: A Bold Plan to Stop Washington from Bankrupting America

I rarely read books written by politicians and like them but this one was an exception. There’s a load of graphs in here but it’s surprisingly very readable. The information here should be alarming to everyone regardless of party. Our debt crisis is no joke and Coburn puts into perspective how bad it’s getting.

Normally, I try to stay away from books by sitting politicians as they usually are just full of self-righteous proclamations. The one exception has been Ron Paul and now Tom Coburn, Senator of Oklahoma and his book. Dr. Coburn is exceptionally in tune with the problems we face today. He is non-partisan and holds nothing back. He is critical of his own party as well as the other(s). Dr. Coburn explains in horrifying detail the complacency of his fellow senators and congressmen while he served in the house. This book proves most of the assertions of Washington D.C. <br /><br />Although Dr. Coburn did not mention the "Federal" "Reserve" and its part in the the debt bomb, I truly feel that if we had more politicians such as Dr. Coburn, we would not be in the situation we are today. Although I do not agree 100% with term limits as Thomas Jefferson was arguably a career politician and cannot imagine life without his hand being involved. <br /><br />Dr. Coburn has self-imposed term limits on his time in the House and in the Senate. He is on his way out and knows where the "bodies are buried". He is of the opinion that the Left and the Right are aware of the problems and the solution but they lack the political courage to do something about. All the while, the people of this country are believing the status quo is sustainable. Entitlements need to cut as does our DOD budgets. This is a fact. The Left is fine with cutting DOD but does not want to touch entitlements, and the Right is the opposite. It is imbecilic to believe that this country can sustain the entitlement programs today, let alone the ones that are planned. Mr. Coburn is not as "radical" as I am, I understand. His ideas are based on continuing to provide the entitlements to some degree while I am more on the side of doing away with most of them if not specifically stated in the Constitution. I am for them if the Country decides they want to amend the Constitution.<br /><br />The book is excellent as it dives into the mindset of these careerist politicians and what makes them tick. Write a letter to your politicians and recommend them to read this book. It was certainly beneficial to me.

Aside from a few of the graphs in this book being indecipherable to me, it was really a surprisingly readable work. The American people need more sentinels in the Congress like Tom Coburn in order to effect budgetary change.<br /><br />Chapter after chapter, Coburn shows how the government has overstepped its original bounds and how our current crop of career politicians (on both sides of the aisle) has no interest in reining in spending because it can hurt their changes of re-election. There's a huge culture of tit-for-tat approval of earmarks while politicians openly complain about others' wasteful spending. There is plenty of unnecessary duplication of programs, needless bureaucracy, waste and abuse, and no one is keeping track of anything, and in fact, even pre-Obamacare, the government is so immense that no one can tell where the money is going.<br /><br />Coburn doesn't pull any punches in saying that our entitlement programs in this country MUST be reformed by raising the age of eligibility, means-testing, requiring more individual contribution, and cracking down on waste, fraud, and abuse. His assertions are backed up with both economic data and anecdotal instances (ie, BHO saying that "I can't guarantee checks will go out on Aug 3 [2011] if we don't raise the debt ceiling").<br /><br />He also offers alternatives to the Affordable Care Act, which will require everyone to buy coverage but won't increase access to actual care, and astutely (he's been a physician for 30 years) points out how this program will make Medicaid and Medicare worse than they already are. He pinpoints many areas where the Department of Defense can reasonably be scaled back, especially with regard to civilian contracting, streamlining production, and modifying programs like Tricare for Retirees.

This book is so great. Okay, so it does lag a bit at times...with all those numbers, lists, plans and the like. But Coburn very clearly describes the issues our country is facing and comes up with solutions. He's merciless in his critiques....but I learned so much and all of it detailed and supported.<br /><br />If you're interested in the future of our country and the issues (financial and political) we face then read this book. I walked away shocked at the level of political corruption (yet somehow not surprised).

Senator Coburn is an absolute hero. He fought (usually alone) for fiscal responsibility while in the Senate. We need more people like him in our government. In this book, he discusses ways we can balance our budget by reforming military spending, decreasing entitlement spending, fixing Social Security so that it’s less wasteful, eliminating earmarks, requiring offsets when authorizing more government spending (taking money from somewhere else in the budget, instead of digging our country deeper into the debt hole), and much more.<br /><br />Here is a long book summary: <br />“In a nation whose debt has outgrown the size of its entire economy, the greatest threat comes not from any foreign force but from Washington politicians who refuse to relinquish the intoxicating power to borrow and spend. Senator Tom Coburn reveals the fascinating, maddening story of how we got to this point of fiscal crisis—and how we can escape. At a time when millions of Americans are speculating about what is broken in Washington, The Debt Bomb is a candid, thoughtful, non-partisan exposé of the real problems inside our government. Coburn challenges the conventional wisdom that blames lobbyists, gridlock, and obstructionism, and places the responsibility squarely where it belongs: on members of Congress in both parties who won’t let go of the perks of power to serve the true interests of the nation—unless enough citizens take bold steps to demand action. <br />“Democracy never lasts long. It soon wastes, exhausts, and murders itself. There was never a democracy yet that did not commit suicide.” —John Adams<br />Throughout a distinguished career as a business owner, physician, and U.S. senator, Tom Coburn has watched his beloved republic careen down a suicidal path. Today, the nation stands on the precipice of financial ruin, a disaster far more dangerous to our safety than any terrorist threats we face. Yet Coburn believes there is still hope—if enough Americans are willing to shake the corridors of Washington and demand action.<br />With an insider’s keen eye and a caregiver’s deft touch, Coburn diagnoses the mess that career politicians have made of things while misusing their sacred charge to govern.<br />Coburn’s incisive analysis:<br />Reveals the root causes of America’s escalating financial crisis <br />Exposes Washington’s destructive appetite for wasteful spending, power grabs, backroom deals, and quick non-fixes <br />Rises above partisanship to implicate elected officials of all stripes in steering the nation off course <br />Lays out a commonsense guide to restoring order<br /> Concludes with a clarion call and sound advice for Americans who would dedicate themselves to defusing the debt bomb <br />Above all, Coburn believes the United States can continue as a beacon of opportunity for future generations—but how we act today will determine whether we deliver the nation to our children and grandchildren fully alive, on life support, or without a pulse.”

In this powerful book Sen. Coburn does more than point out our nation’s enormous debt, deficit, entitlement and tax problems, but concludes by offering suggestions to solve these worrisome challenges in ways that should suit the poor and help everyone else.<br /><br />A shocking quote at the start of Chapter One is from Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff under President Obama, June 24, 2010: “Our national debtis our biggest national security threat.” Incidentally, on PBS’s Charlie Rose I saw Secretary James Baker say, “We’re broke.”(June, 2012) In his book, Sen. Coburn writes that “America is already bankrupt.” These statements may be and are unsettling, but the light at the end of the tunnel is the chance we have to elect Governor Romney and a host of Republicans at all levels.<br /><br />But first, the bad news, which is that we are in a spending and entitlement crisis; our government debt and entitlement obligations are already slowing our economy by twenty-five to thirty-three percent. In my opinion, the Obama administration’s trillion-dollar-plus deficits over the last three and a half years have suppressed the economy rather than stimulated it. Perhaps if our country had been at a low or moderate debt level, his policies might have worked. This spending binge must stop. I realize that both Republicans and Democrats have lacked spending discipline.<br /><br />To get the latest figures on our government obligations, do a Google search for the U. S. Debt Clock. Right now the U. S. National Debt is $15,801,265.5↑↑, and increasing as Gross Domestic Product (GDP) is $15,217,191, ↑↑↑. Unfunded liabilities (Social Security, prescription drugs and Medicare) total $119 trillion. I invite you to review that website from time to time to attempt to grasp the magnitude of our very precarious position.<br /><br />Almost a third of our debt is held by foreigners. In April 2011 Standard and Poor’s (S&amp;P), one of the larger rating agencies, downgraded the United States long-term credit outlook from “stable” to “negative,” and in August they reduced our rating from AAA to AA+.<br /><br />The continuing crisis in Europe shows in real time the effects of high government debt and obligations. That can and will happen to us unless we take decisive actions, such as the author suggests.<br /><br />The world will have a liquidity crisis soon—sometime in 2013—when the planet’s liquid assets ($9 trillion) won’t be enough to fund sovereign debt requirements (around $13 trillion), a situation that will push interest rates up. The government may try to inflate its way out by printing money as it has done already, but if such a course of action is tried, much of our life savings will be wiped out. In the final stage, “the bottom would fall out of the middle class. Unemployment would soar, while the cost of living would increase.”<br /><br />Around the world Senator Coburn and I see the fall of the “International Welfare State,” including Greece, Italy, Spain, Portugal, Ireland and Japan—all in “serious risk of default.” There is a very real possibility of a worldwide depression.<br /><br />My calculation from the U. S. Debt Clock of our national debt ($15.8 trillion) to our Gross Domestic Product ($15.2 trillion) is just over 100 percent. The book described a debt-to-GDP ratio of 90 percent as “dangerous.”<br /><br />Careerism on the part of our elected officials is cited as the root cause of our present state. Republicans and Democrats have lavished the government’s money in ways that they figured would allow them to stay in office, practically at any cost. Why do they want to stay? They are surrounded and courted by staff, lobbyists, party leaders, and special interest groups. And there are all kinds of perks.<br /><br />The Constitution has been largely ignored over the last few decades, as career politicians concentrated on the next election with “unsustainable debt” as the result. Earmarks such as the expensive “the bridge to nowhere” in Alaska demonstrate sadly the careerism and parochialism (obtaining federal spending for one’s own district or state, usually referred to as pork barrel spending).<br /><br />To quell the myth that there is a continuing stalemate in Washington, Sen. Coburn writes, “Our economy is on the brink of collapse not because politicians can’t agree, but because they have agreed for decades.” Getting our country in fiscal shape will require that politicians learn to say “no.”<br /><br />President Reagan in his first inaugural address, 1981, said, “In this present crisis government is not the solution to our problem; government is our problem.” I firmly believe that Governor Romney could step forward and lead a host of Republicans in 2013 in a manner like President Reagan. On the other hand, President Obama is part of the problems.<br /><br />Our government itself is in dire need of kind, but firm and extensive innovation. The stimulus simply didn’t work. Part of the money, $535 million, went to Solyndra, a solar-power company that went bankrupt. “One of the administration’s key donors … had a financial stake in the company.”<br /><br />Senator Coburn made two key statements: “We are on the edge of an abyss not because we had too little faith in government but because we had too much faith,” and “A government that works is a government that is limited.”<br /><br /> <br /><br />Part Two—The Solution<br /><br />The Tea Party Republicans may be part of the solution. Over and over President Obama was given the chance to lead. One instance was evident at the time of the report by the National Commission on Fiscal Responsibility, known as Simpson-Bowles, on how to reduce the deficit, which was closer to President Reagan’s 1986 tax reform than President Obama’s tax increase proposals. President Obama didn’t embrace the recommendations. According to Senator Coburn, “His [President Obama] decision, I believe, will be remembered as one [of] the greatest failures of presidential leadership in American history.”<br /><br />We must not take a chance of future failures. If we are to wait until after the 2012 elections, Republicans must “win the White House, maintain a solid majority in the House, and win about sixty-five seats in the Senate to control the national agenda.”<br /><br />There are answers. What is needed is courage to do what is right. Senator Coburn and his staff identified $9 trillion in savings over ten years in a 624-page report which he called Back in Black.<br /><br />We should watch and learn from the events unfolding in European countries, such as Spain, which has high and unsustainable yields on government debt, as well as unemployment at 25 percent.<br /><br />Duplication in government spending is an obvious starting point, and Governor Romney is ideal to direct such an endeavor, supported by a Republican Congress. We should shrink government, but with thought and planning to assist those who will lose their jobs. I believe optional occupational interest tests, ability tests and privately-administered outplacement services could allow workers to assume fruitful private sector jobs or self-employment.<br /><br />The General Accounting Office said, “Reducing or eliminating duplication, overlap, or fragmentation could potentially save billions of taxpayer dollars annually and help agencies provide more efficient and effective services.” “Senator Coburn estimates we can save $3 trillion over ten years by ending duplication.”<br /><br />U. S. Senator Joe Lieberman said, “We can’t save Medicare as we know it. We can only save Medicare if we change it.” Unsustainable demographics and benefits confront maintaining entitlements in their current state. “Medicare is already broke and running on empty.”<br /><br />So, what is the Medicare solution? Senator Coburn gives two answers: “(1) adjust the eligibility and generosity of the Medicare benefit by relating benefits to income (i.e. forcing wealthier Americans to pay more) while raising the retirement age to reflect changing life spans, and (2) transitioning Medicare from a defined benefit to a defined contribution.”<br /><br />Social Security is now cash-flow negative and, “Between 2012 and 2013, the program’s cash deficits are projected to total $630 billion.”<br /><br />Senator Coburn tells it like it is: “It is not that hard to fix these problems. The truth is, we have a surplus of solutions, but a deficit of courage.” President Obama has graphically demonstrated a lack of courage and competence. I believe Governor Romney and a host of Republicans at all levels can and will provide solutions.<br /><br />When writing about Obamacare Senator Coburn quotes P. J. O’Rourke, “If you think healthcare is expensive now, wait until you see what it costs when it’s free.” He points out that “… too many doctors are torn between serving their patients and protecting their practices from predatory trial attorneys trying to make a quick buck.” He estimates that “defense medicine costs patients between “$650 and $850 billion a year.” We must repeal Obamacare and put in place systems in which the doctor and patient work through a free market with competition, transparency and choice.<br /><br />As to reforming taxes, the “rich simply don’t have enough money to pay all the bills.” As Margaret Thatcher said, “The problem with socialism is that you “… always run out of other people’s money.”<br /><br />We must make our tax system simple, understandable and affordable. As Representative Paul Ryan said, “Every dollar that businesses spend lobbying for a better tax deal, is a dollar they’re not spending on making a better product.” There are twenty-seven countries in the world that now have simple, flat taxes and more nations are considering them.<br /><br />A key point is, Tax simplicity would redirect money in and out of the government away from tax compliance toward more useful pursuits, increasing our nation’s productivity. The risk-takers, entrepreneurs and job creators would benefit rather than politicians, lobbyists, and such.<br /><br />In 1986 President Reagan passed tax reform that closed many loopholes, lowered tax rates, simplified the tax code and started a twenty-five-year period of solid growth. Federal tax revenues soared. Tax reform was accomplished then with spectacular results. President Obama lacks the expertise, attitude and constituency to emulate President Reagan’s success. I believe Governor Romney and a host of Republicans could and would recognize and innovate in our tax system.<br /><br />As to defense, the practice of spreading defense spending all over the country is very wasteful. Waste in defense is being funded by our deficits, so such costs must get the kind of scrutiny that we pay to all fiscal areas.<br /><br />Robert Kennedy is quoted in the Conclusion: “Few men are willing to brave the disapproval of their fellows, the censure of their colleagues—the wrath of society. Moral courage is a rarer commodity than bravery in battle or great intelligence. Yet, it is the one essential and vital quality for those who seek to change a world which yields most painfully to change.”<br /><br />Washington needs Governor Romney and a host of Republicans to try to live up to Senator Kennedy’s incisive words. We are in crisis. It’s not like 9/11 or Pearl Harbor, so easily viewed, but if there weren’t such crises in Europe right now, the truth would be upon us.<br /><br />The media should be ashamed of themselves for not covering hard news such as these enormous fiscal problems. Too many cover the horse race in policies without any depth in these critical issues.<br /><br />Governor Romney and President Reagan were superb professionals in the finest sense. I see in Governor Romney the deep intelligence and motivation that President Reagan possessed. In President Obama, however, I see a masterful politician who is drastically lacking in leadership and competence for the innovation that has been and is needed.<br /><br />In Governor Romney I see a moral leader who will make his decisions, based on what’s right for the country and its future. He has a long track record of accomplishment.<br /><br />Our country has many challenges and Governor Romney points out one—illegitimate birth; it was seven percent in the 1960s, but has skyrocketed to forty percent now. The “Great Society” destroyed many families by taking away their self-reliance.<br /><br />Ann Romney volunteered at a school for at-risk girls. When she asked the class how many wanted to go to college almost every girl raised her hand. Then she asked the class, “How many of you want to have a baby before you graduate from high school?” Again, almost all raised their hands, indicating they had not made the vital disconnect between those goals.<br /><br />Governor Romney points out that the American people are, in general, quite hard-working with more hours than the Germans and French. Americans are also risk-takers. He told the story of a young person he tried to hire. But the gentleman had an idea for a business and turned Mr. Romney down. Years later Governor Romney saw the gentleman, who was by then worth $25 billion, having earned his fortune through Microsoft. He had taken a chance.<br /><br />The role of the electorate is to seek honest, capable, wise, visionary leaders. I believe that Governor Romney “fits the bill.” He’s honest and frank, and courageous; it takes a lot of courage to write about illegitimate births. I also see the wisdom of President Reagan in Governor Romney. He’s a moral, genuine person who can solve, with the help of other Republicans, the immense problems ahead.<br /><br />We are in a frontier in terms of our nation’s financial, educational and family status. President Obama had his chance and he has not accomplished very much of substance. And his fiscal and financial actions have been dismal. I believe that Ronald Reagan was a decent gentleman with vision, and the same is true of Mitt Romney.<br /><br />The elections in the United States will be scrutinized around the world, much, much, more than the elections in Greece. I hope and pray that the American people will see what I see.

This book will scare you in the fact that we think our nation is secure and strong, but the reality is that we are drowning in debt. <br />The author a former senator from Oklahoma talks about how we got into this mess. He also talks about how we can get out of it as well.<br /><br />Here are a list of the main reasons we continue to accumulate debt.<br />-Careerism, politicians that won't do the right thing because they want votes and are afraid to stand up to the public because they won't be voted back into office.<br />-Entitlement programs, aren't closely monitored as well as they should be. Medicare and Social Security could cost this nation greatly.<br />-Overspending, Earmarks/Pork improper spending by congress on things that the nation really doesn't need.<br />-Government growth, Duplicitiy and more government programs that we don't need.<br /><br />Its going to take massive adjustments to the USA to tip the scales towards lowering the National debt. Hopefully we can come together as nation to figure these things out.

Before reading this book, I didn't know who Sen. Coburn was. I was ambivalent about imposing term limits for congress and now, I'm persuaded that "careerism" as Sen. Coburn calls it is at the root of Congress' inaction on issues that urgently need their attention. He also gives his perspective on the need for close scrutiny of the existing body of laws for duplication / ineffective spending, the need for entitlement reform, the need for tax reform and the need for health care reform; all of these contributing to our nation's budget crisis.

Gold standard for fiscal responsibility.<br /><br />I admire his willingness to work with anyone who will reduce federal government spending.<br /><br />Every once in a while this book falls into "I need to show my conservative credentials" rather than advancing the goal of eliminating federal debt.<br /><br />Wish that he had addressed the argument that "U.S. Savings Bonds are *needed* in the market".

I am in full agreement with the premise that debt is a massive risk to the US and many of the concepts of the book are spot on. If you are able to not focus on his supreme ignorance around climate change, this is a very good read with good solutions focusing on social programs and massive corruption