The deficit clock currently lists the federal deficit as $14 Trillion and change. Many factors contribute to this number, but this number, as in the cost of everything else, is measured relative to the value of the American dollar of which this number is reported.
A dollar bill is not worth a full dollar, resulting from devaluation; although there are many factors contributing to devaluation, the biggest factor is how many Federal Reserve notes get printed.
The last time a dollar was worth a dollar was 1952. Rock and roll was in the embryonic state, the Dodgers were still in Brooklyn, and had not yet won their first world championship, the Trade Towers in New York that were the casualties of 9-11 were not built yet, and telephones did not have push buttons, let alone be hand-held and cellular. The dollar progressively devaluated, was worth about sixty-four cents in 1973, and today is worth just over eleven cents. It was during the ten year period between 1953 and 1962 that more and more of our currency was shifted from precious metals (gold and silver) to Federal Reserve notes, which are backed only by good faith, which is running thin in Washington these days. In 1962, President John Kennedy took us off the [silver] standard and made our currency one-hundred percent Federal Reserve notes. Meanwhile, gold is trading at about $1,700 per ounce. It is time we took a good look at our past when the dollar bill was the size of the original Hollerith computer punch card and instead of the words Federal Reserve Note was labeled Gold Certificate.
When currency is backed by a precious metal like gold, no government agency (such as the Federal Reserve) can print more [certificates/dollars] than what of this metal exists on our soil. I fully understand in America today we cannot have a currency that restricted, so I am not suggesting abolishing the Federal Reserve. Besides if we print currency depleting all of America’s gold reserves, we have no margin for error and we are now a world economy. What I am suggesting is that we hybridize our currency as it was in 1952; I would say sixty percent Federal Reserve Notes and forty percent gold certificates; and if inflation requires more currency in circulation, the sixty-forty relationship must be maintained by the Federal Reserve.
This action will supercharge the American dollar and make it worth on or close to a full dollar once again. If it as much as revaluates the value by sixty percent, the $14 Trillion dollar deficit, relative to the new revaluated dollar, will [only] be $8.4 Trillion. Still a huge number, but a reduction without Americans sacrificing vital services like Social Security or facing tax increases that they cannot afford. Now we can look into sensible spending cuts without touching the third rail of politics.