~ “How long can the world’s biggest borrower remain the world’s biggest power?” Lawrence H Summers, President Obama’s chief economic advisor. ~

The Ottoman Empire once dominated the earth. The great Empire spread from Eastern Europe, down through Egypt, east to Persia (Iran).

Twice, the Empire reached the gates of Vienna.

The Ottomans military might was equalled only by it’s economic superiority. The Empire controlled all trade to the Far East (which is why Spain sent Columbus to look for a better way to China).

Over time, however, the Empire lost its mojo. Nothing dramatic happened… The Ottoman’s economic and military might simply withered away as Western Europe erupted with new ideas, land, and economies.

By the 1800s, the Ottoman Empire was referred to as the “Sick Man of Europe.” The Empire slowly became irrelevant.

So, I have to ask: Are we the Ottoman Empire? Are we, the United States, a superpower that is on the path to irrelevance?

I hope not.

But, for an answer, let’s first look at history.

About one hundred years ago, the US became the number one economy in the world. With our money came newfound power. But we really didn’t use our power on a world-scale. Europe or Asia did not concern us; we believed that they would only cause trouble.

The two World Wars changed us… We realized that as an economic superpower, we needed to interject ourselves onto the world stage – or else another, more evil nation, would do just that.

We learned that there is always a power vacuum...

Fast forward to today.

The US has now been a world superpower for sixty years -- largely (if not totally) due to our economic strength. Yes, we’ve made our mistakes; but, overall, the world is safer and freer because of the US.

That may not be the case for much longer.

Our massive federal deficit is threatening vitality of the United States; our very relevance is at stake.

Under the Bush administration, the deficit soared. But under Obama, it has skyrocketed. This past year, the deficit rose to $1.4 trillion. Our national debt hit $12 trillion.

Just today, President Obama proposed a massive $3.8 trillion budget. It contains the President’s wallet-busting health care, and cap-and-trade bills, but does nothing to trim entitlement programs.

At this pace, we’ll soon be borrowing money to pay for borrowed money...

So, while we rush to the bottom, guess who’s working to take our place?

China: a nation that owns nearly $800 billion of US debt.

Yes, this ancient empire is no longer rising – they are on stage, and they are playing their part.

With vigor.

China escaped the recent recession with ease. In the past year, China’s economy rose 9%. They are about to pass Japan as the worlds #2 economy. Within 10 years, China may have the number one economy in the world.

And they know it.

China has morphed from charming-giant, to assertive-dragon. Recently, the nation has stopped the US and EU from implementing sanctions on Iran; they have bullied their neighbors , Cambodia, Taiwan, India; and are now warning of major consequences if the US dares to sell $6.6 billion worth of weapons to Taiwan.

China’s government is even worse at home. Speech is restricted; the internet censored; Christians, Muslims, and all other non-sanctioned religious groups, are imprisoned or killed.

This, ladies and gentlemen, is the next Superpower. (It makes you wonder if people will soon long for the days of US domination…).

Our debt only hastens China's ascension...

So, is there any way to stop our hemorrhaging?

Absolutely.

We need to fix the deficit. Soon.

Last week, though, Congress blew a chance. Congressional Republicans and Democrats blocked the creation of a commission that would have recommended ways to deal with the deficit. Under the bill, the commission’s recommendations would have been put to a vote.

The bill was blocked because the commission might have advocated spending cuts to entitlement programs (blasphemy to Democrats) or tax increases (heresy to republicans).

And so, both parties got scared, and blocked the bill.

Go Team America…

So, we’re at an impasse. On one hand, we can hope that one of the political parties gets 60 Senators, which will allow them to ram either massive tax cuts, or huge entitlement spending down our throats.

Or, we can call our Congressional members and tell them that enough is enough. We are tired of one party rule; we are sick my-way-or-the-highway Congressional bills…

Bills that do nothing to address the deficit.

It’s time to compromise. It’s time for Congress to create a congressional deficit commission. And then they must vote on the tough measures.

If Congress does not act, our nation could soon become irrelevant. A forgotten has-been. The Sick Man of America.