Raise the debt limit

This video illustrates the analogy I made a few weeks back.  Republican or Democrat, you should watch this video all the way through.  If you are an elected official please watch it several times.  Better yet, watch it until you can recite the lines before they are spoken.  I want you to understand the mess you’ve created and refuse to get us out of.

The numbers

At the end of the video they display the numbers.  Lets take another look:

Total Household Debt:     $140,000
Household Income:          $21,700
Household Spending:        $38,200
Additional Debt*:          $16,500
Amount Cut:                   $385
     -about 1% of the total budget

This chart dissolves to the U.S. situation:

Total Federal Debt:  $14,000,000,000,000
Federal Income:       $2,170,000,000,000
Federal Spending:     $3,820,000,000,000
Additional Debt*:     $1,650,000,000,000
Amount Cut:              $38,500,000,000
           -about 1% of the total budget
* The video incorrectly labels this as “New Debt” it is not the new debt as that would equal Total Debt + the requested debt limit increase, I corrected this value in both charts.

Understand history and maybe you’ll avoid repeating it

Now pick up a history book on the French Revolution.  Every elected official in modern America should become very conversant on this topic.  France in the late 1780s was a nation with run-away debt, loose adherence to and even antagonistic attitudes toward religion.  This resulted in a revolution rooted in atheism, dissatisfaction with the government, economic collapse, and a government unable to control or change its course.

The result was a terrifying holocaust unlike any before and was unmatched until a similar economic collapse thrust a certain angry Austrian to absolute power over the Weimar Republic.

When there is a total financial collapse, society will also collapse.  The arrogance that always leads to this result is the attitude, it’ll never happen here.

Keep forcing our unborn grand-children co-sign the loans and the result will someday either resemble France, 1794, or Germany 1933.

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    • Anonymous
    • February 11th, 2012

    I know this post is more about the current state of our debt to GDP ration than anything else. However, for insight in what is in store for America if we don’t get our act together, I look to Greece,

    Early last year I pointed out that Greece’s path then could lead to toppled gov’t and civil war. History has shown us how the elements working against Greece often lead to war. We have already seen a replaced president, mostly “appointed”.

    Currently, I see how Greece is demonizing Merkel directly, showing her picture in a Greek newspaper wearing a Nazi armband with a Nazi flag hanging on the wall behind her. Greeks are doing this because they have yet to face the facts about the cause of their condition. Instead of looking in a mirror – because they can’t – they are instead opting to blame Germany for their woes.

    Because of this inherent inability to face the correct facts, I do not see Greeks able to save themselves. We see this when they take to the streets to riot which only promotes economic instability in an economy already at the point where there is a tax revenue drop of 7%. Now, here’s the rub in that; the Greek gov’t has imposed austerity measures which are reflected in that drop. So why in the hell is a drop of 7% such a surprise to them? It serves to make my point about how generations of gov’t inspired social engineering designed to create gov’t dependency prevents them from applying sound financial principles which would have allowed them to foresee these events plaguing them today. Furthermore because of this “engineering” their society’s mindset prevents them from pursuing the proper course, i.e. getting with the program, opting instead for social unrest that can lead to class war or even a revolution..

    • Jack Hudson
    • February 20th, 2012

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