US Fiscal situation explained

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tortuga

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This puts things into a much better perspective as to the present
economic situation..

Lesson # 1:

* U.S. 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 cuts: $ 38,500,000,000

Let's now 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 so far: $ 385

Got It ?????



OK now,

Lesson # 2:

Here's another way to look at the Debt Ceiling:
Let's say, You come home from work and find

there has been a sewer backup in your neighborhood....

and your home has sewage all the way up to your ceilings.

What do you think you should do ......

Raise the ceilings, or remove the sewage?

​
 
lesson learned. I'm sad.
 
High Five said:
Recent budget cuts: $ 38,500,000,000...Ugh is that it.... The rich are going to sink that country...
Click to expand...

Nope, the Chinese have them exactly where they want them. Guess who won the cold war! Its all part of the global strategy. Look around and you will see they have all the resource sectors across the globe locked up, have control of the major transportation infrastructure to get those resources to them, and have every major country indebted to them. Winner takes all. Cold war over.
 
I disagree Searun in as far as the chinese have them(US) where they want them. They are the US' biggest creditor-same old adage you owe the bank a large amout of money-you have a problem-you owe them a huge amount of money and the Bank(china) has problem. Does the phrase"too big to fail!" apply??
 
i am not an economist but i do know my household budget and the federal budget are not comparable. take for instance, Sandy. how is that to be paid for? the tea baggers say just cut something but fail to tell anyone what they would cut. the far left says, pay for it by borowing we have citizens out in the cold. the states say, well they can rebuild exactly where they just got wiped out. so a complex set of events gets set up.

the US dilema started with bush 2 and a couple of unfunded, read that paid in the future somehow, wars. bush 2 had a huge surplus, a positive balance in the federal checking account, courtesy of clinton. bush 2 started those wars 'on the cuff' told the wealthest they didn't have to pay their fair share, disassembled regulations on various businesses, just what harper is currently doing, and sat there like the dumb turd he really is.

so how to dig your way out of this hole without upsetting the world economy??? a really tough question for any sitting president but one that is slowly taking shape by obama. ending these wars is a required first step. iraq is pretty much done, and afganastan will be pretty much on their own shortly. if hagel is put into the DOD, a totally different approach than that taken by the chicken hawks will take a hold and this country will turn a corner on the chicken hawk approach to other nations.

but, china owns a good chunk of this country, yours as well, and will have to be dealt with as a 'business' partner, like it or not. the last thing these folks would want to have happen is the US economy to collapse. they fully understand the consequences to their country and their business interests.

so just cutting the budget is not going to fly as there is not much to cut save the enormous military budget. with the tactics currently employed to destabalize various regions, it flies in the face of reality to demand more advanced aircraft, more carriers and ships, more troops or whatever. but the chicken hawks will fight this to the end. the reality is simply that that is where the big bucks remain untouched. the questions is whether the will is there to go after them. i feel pretty confident that Hagel would take those steps and provide a real boost to getting the budget back in balance.

this calendar year should prove interesting and pretty much determine how all of this plays out. in the mean time, live within your means :)
 
The federal reserve system creates all these boom and bust cycles in the us and this is why there is bank of canada and Bank of England with no oversight from government who wouldn't interfere any way because all politicians need money for their causes I suggest everyone interested in these kind of economics read "the creature from Jekyll island" A lot of mind blowing facts about inflation actually being a hidden tax as a result of creating money out of thin air and devaluing the dollar as a result giving it less purchasing power and banks only having to have 10% of the money they lend out that is why if everyone goes to their bank and tries to take their money out its called a run and the bank fails ie Lehman brothers.
 
Watch China. He who has the gold, makes the rules. The US unfortunately is no longer "the" world power. China has quietly gone about acquiring the means to ensure it has global economic control. Its pretty hard to treat the bank as a business partner when you have difficulty paying the loan - the bank gets to dictate things in a way that makes you lose total control over your own sovereignty. Hopefully the debt can be wrestled into control and put the US back into a better position.
 
searun said:
Watch China. He who has the gold, makes the rules. The US unfortunately is no longer "the" world power. China has quietly gone about acquiring the means to ensure it has global economic control. Its pretty hard to treat the bank as a business partner when you have difficulty paying the loan - the bank gets to dictate things in a way that makes you lose total control over your own sovereignty. Hopefully the debt can be wrestled into control and put the US back into a better position.
Click to expand...
Not 100% true, Pat. In the global economy, if the states decided to "not pay their debt", they do not lose their sovereignty if they chose not to. They have invested faaaar too much in their miltary to jeopardize that. I agree that China has done an exemplary job of gaining significant power economically, but their relationship with the States is completely symbiotic. This is not a host/parasite relationship. If your debtor decides not to pay his bill and there is no one to enforce that payment, then the loaner also loses. And China does not have the power to enforce their loans..............yet ;)
 
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