Home > Federal Bureaucrats > CEO of Honeywell: Debt to GDP will be over 130% in 20 Years

CEO of Honeywell: Debt to GDP will be over 130% in 20 Years


judge and constitution1I was watching C-SPAN tonight and the CEO of Honeywell, David Cote, is the head business advisers serving as the Simpson-Bowles Commissioner Member. He was interviewed by John Busser, from the Wall Street Journal, serving as Executive Business Editor.

Cote had some stern advice to politicians about the way they were running the economy and how dire the situation is becoming over the debt problems. Currently our debt to GDP is running about 40%, that means their is still room for profit in the global markets. Even after loosing many manufacturing plants to overseas expansions and labor cost. The few things that are keeping us competitive is the energy sectors/fossil fuels, agriculture, technology, and service industry. The lack of jobs are directly due to Obamacare, lack of startup companies, due to the heavy regulations on past, present, and new business, plus higher energy cost.

In 10 years the debt to GDP will be around 70-80%, but in 20 years it will be over 130%.

Here is the real scary part, in 10 years we will be paying over 1 Trillion Dollars in interest ALONE.

Cote, also stated that while serving in Washington, he discovered something. These people do not say, do, or act like they tell you. Basically what I get out of all that was they lie, cheat, and steal. They may not do it directly, but indirectly, and it all has an effect. If you rig the system someone has to lose.

Twenty years ago the global GDP was around 1 billion, now it is around 4 billion. As the world grows homogeneous, we have to adapt, change our way of thinking in order to move along as a dominate player in the new economy, or be crushed and discarded like the Roman Empire. Cote said for the last twenty years we have been waiting on the next big thing, computers were first, then the internet, but that’s it, what’s next?

Cote said we have the next “BIG” thing under our feet, fossil fuels, with enough energy to last decades and job growth into the millions. We could have $2 gas, and then you would see a huge boom in this nation, over 2.5 trillion in basic wealth gained in 20 years. The next thing we must do is increase education into the STEM programs (he said India is killing us in software programmers now and that is the future), Tort reform (to slow down this rapacious litigious society, that is mainly benefiting lawyers), free trade (Latin America doesn’t look good, the populist environment creates doubts, any government can be overthrown by the people at any given time), repeal heavy regulations, and create a business friendly environment.

This was most interesting of all, Cote said the government is to help enable business –not hinder- it is the duty of government to aid business to be more productive. It was Henry Ford, who built the auto, government made the roads better so that more people could increase delivery time. Government didn’t invent roads they had business help them to understand how they were built, to make a standard or blueprint, so others could be efficient in road construction. When government impedes business, then the whole engine shuts down and there is no growth. That is where we are now, 1.8% in GDP is used up in profits any business is making. There is no room to grow in that environment, it only stagnates and festers until something pops. The only trigger, Cote said, that would move congress into serious action is the bond market collapse. Once bonds start rising in interest (as they are doing), then you see inflation creep in. The higher the rate the more inflation, until we reach hyperinflation, then prices shoot through the roof. That’s when a loaf of bread will cost you 50 bucks, if you can find any.

The business community is freaking out; we stand in a point in time where we are watching the economy turn into a negative fashion. When government is more than 50%, people on welfare more than 50%, who is going to pay all this? The privet sector is being squished into a minority that has to burden the load. You can bet one thing for sure, hard working people are going to stop working when they are tired of doing it all.

The bureaucrats are not going to get a job; welfare people are not going to work, so you leave the rest of the population to support the nation, how long do you think that is sustainable? This is why bureaucrats like Rubio and Ryan want to push the Immigration Bill through, it’s their opinion new people will pay into the system so it can support the older people. But how many are low wage workers who will do that, and for how long, before they take their money and go back home? After all, one US dollar is like 20 bucks in Mexican money, so they can work here for 10 years and go back home to retire as kings. This applies to the high wage foreign workers as well… When you tax people to death, they will perish.

Winston Churchill said it best. Capitalism is the equal sharing of profits, while socialism is the equal sharing of misery.

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Categories: Federal Bureaucrats
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  1. July 11, 2013 at 3:59 pm
  2. July 10, 2013 at 6:16 am

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