I'm John Batchew with Tom Savage, a research research felt the American Institute for Economic Research.

And Tom has assembled something to worry about when you think everything is going well.

The economy is strong.

The market is sturdy.

The world is not at peace, but at least way away from our shores.

And then we have debt, piling higher and higher.

I think it's in the 30 trillions now, but whatever, a trillion is enough to worry me.

Tom is here to recommend a way forward, reminding all of us that there are different ways

to measure how much trouble we're in.

I think you prefer debt to GDP. Is that correct, Tom?

Slightly, yes, but there are other metrics that are just as important, like that interest

to revenue, the debt to interest, excuse me, debt to interest ratio and debt to revenue

ratio. All of those measurements tell a

different story. Find us a way out of this, what appears to be endless maze. How do we get out of it?

It is the difficult choice of having to cut spending. The federal government, although it acts a little

differently than a household, it should be budgeting

with the same prudence of a household.

That has to come not just from political courage, but also from stringent budget rules,

rules that don't allow Congress and the executive branch, regardless of who's in power, to

pressure the Federal Reserve into printing

money, and also requires strong limits, maybe even a constitutional amendment, limiting how much

Congress can spend, that tying those budget rules. And then also, it requires budget processes,

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