US Economy explained

[barfife]

The US Problem Explained!

Here is why S&P downgraded the US credit rating.

US Tax Revenue: $2,170,000,000,000

Fed Budget: $3,820,000,000,000

New Debt: $1,650,000,000,000

National Debt: $14,271,000,000,000

Recent Budget Cut: $38,500,000,000


Now let's remove 8 zeros and pretend it's a household budget.

Annual family income: $21,700

Money the family spent: $38,200

New debt on the credit card: $16,500

Outstanding balance on the credit card: $142,710

Total budget cuts: $385

[miked2345]

The US Problem Explained!

[B][SIZE=4]Now let's remove 8 zeros and pretend it's a household budget.

Annual family income: $21,700

Money the family spent: $38,200

New debt on the credit card: $16,500

Outstanding balance on the credit card: $142,710

Total budget cuts: $385

Then the kids go stand outside and "occupy" the sidewalk, shouting "Destroy the family! Give us more stuff! Kick dad out!"

[rockriver]

great explanation. great post.
thanks

[WiseOwl]

Like button :)

[610Alpha]

Dave Ramsey had a simliar one...I will have to look for it and put it on the thread.

[Bill Spies]

Oh wow! You DO understand!

[Bull]

Yeah, everyone should see that, to put it in perspective. But that doesn't even take into account our 61.6 trillion in unfunded liabilities. for paying for things like social security and medicare.
So we also have another $610,000 to tack on to that outstanding balance. Wow. 21K in income, and over 750K in debt, with plans to continue to go further in debt. Plus, the credit card has the lowest possible interest rate now, and will inevitably have to go up by about 15% Imagine the credit card payments when that happens.

barfife - that explanation you did above would be great to get into a bunch of news papers, and to print up and hang all over town.

[crossbow]

now would someone explain to me which GOP candidate other than Ron Paul who would not be more of the same if they were elected and how much longer we can circle the drain?

[Bull]

Herman Cain. I still have to figure out if 999 is the gateway to the Fairtax. If so, that alone would be the largest transfer of power to the citizens, and away from government, in our entire history. If not, 999 would probably still make a huge difference. Ron Paul seems to get it more than anyone else, regarding the government, their out of control spending, and the danger it poses. Still, I just don't think he is going to win in either the primary, or the general. Ditto for Gingrich. But I think Cain is probably our best hope. Romney will be more of the same. We need drastic change, and I honestly believe Cain would make it happen, assuming the Republicans get control of both houses. At that point, with Cain in office, I think the congress and senate would be the week link.

If things don't change, I don't think we are going to circle the drain much longer. And if Obama gets re-elected, I think we are done, without question. Really, we are probably screwed if we don't take the house, senate, and the White House. Even then, we will have to see how serious congress is, and I'm not very optimistic.

[610Alpha]

Here is what I was talking about:

[QUOTE]

[610Alpha]

here is another way of looking at it from Dave also:

http://a248.e.akamai.net/f/1611/26335/9h/dramsey.download.akamai.com/23572/daveramsey.com/media/pdf/federal-vs-household-budget.pdf

federal vs household budget

[QUOTE]
By Dave Ramsey

Whenever the talking heads on TV start talking about the national economy, most of our eyes start to glaze over. The gigantic numbers that they throw out there are ridiculous; most Americans have no idea what those numbers mean in practical terms. So, I thought it

[610Alpha]

When the pain of the same becomes greater than the pain of change, that is when we change -- Dave Ramsey

How true this is...got to hit bottom before we change.

[Klayton]

I am just curious as to how much longer will other countries keep buying our debt, knowing our ability to ever pay it back is growing smaller and smaller by the day??? Someone good at economic math should figure out with our current debt, income, spending, and interest payments, what IS the breaking point? I mean when does it reach GREECE level and we can't even pay our interest payments? I just am baffled as all get up that MOST Americans can't see this, and even some that do, are still in the welfare lines waiting for more handouts. SOOOO SAD!!! Perhaps a "reset" is what America needs, and we can then say told you so to all the "buy votes-democrats", give them all a choice, california or new york and sentence them to exhile in their choice of liberal BANKRUPT state... LOL ok maybe thats too much, but I just get so sick of freeloading people (they just had another Democrat commercial on saying Republicans are trying to cut off the ability for her senior aged father to stay in a hospital indefinitely at tax payers' expense-ARGGGGG-its called personal responsibility and health insurance)

[610Alpha]

I lead Financial Peace University at my church and we just had the Insurance Lesson. What insurance's do you need in your financial plan so that you don't have to rely on medicaid...

There is a grass roots movement out there to educate ourselves about money/personal finance. Whether you take FPU or some other class people need to get educated so that they don't become a statistic of the sandwich generation, taking care of kids and parents at the same time which is very likely to happen to a lot of people.

http://www.thegreatrecovery.com/home/ - one family, one church, one community at a time.


@klayton - who knows what the breaking point is. Right now the gubmint brings in enough to pay its credit card payment each month. I don't have an answer but I got HOPE in something other than MAN. Pray for our country. Pray that our leaders get everything they deserve. Pray that God gives them wisdom and soften their hearts to Him.