Posts Tagged ‘ national debt ’

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.

15.2 TRILLION and there ain’t no stopping us now

January 9, 2012 was a historic day in America.  It came and went without much notice in the press or by the millions of Americans affected.  Without Congressional approval, without a vote, without a whimper, the debt limit was automatically raised and the national debt became a record 15.2 trillion dollars.

The new debt number exceeds the total Gross Domestic Product of the entire nation,* which was $15.176 trillion in 2011.  As Americans we should be outraged.  We should recall and impeach all our elected officials who silently approved.  But will we?

No.  Most Americans don’t even realize the danger.  Most won’t care until collapse is imminent.  Then just like in Greece, riots will erupt and people will be confused wondering why they never saw this coming.  I’ve been predicting this since 2004 and writing about it here since 2008.  People smarter than me have as well, but no one listens.

Would you like some fries with that?

Some with shallow understandings of macro economics argue, “it’s a harmless debt, we owe it to ourselves.”  That’s like walking across the Sahara without water and saying, “But it’s a dry heat.”  Nor is it unlike a 900 pound man claiming the extra 1300 calories in the Monster Thickburger won’t make a difference in his 20,000 calorie per day diet.  In both examples the result is the same. Continue reading

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