Budget Hell

You’ve probably heard it before, but it bears repeating. Our elected officials seem to care less about the well being of their constituents, as is their sworn obligation, but rather more about their own place at the food trough. They continue to kick the fiscal can down the road at the expense of the American taxpayer (and our children).

Consider this, as of this writing:

The Mind-Blowing Concept of a Trillion

A singleTRILLION is really hard for most people to understand. It’s such a large number, that it often helps to break it down into more ‘realistic’ values.

For instance, most people still consider a million dollars to be a great deal of money. And it is. The president has even gone so far to say that families making more than $250,000 should be considered as ‘rich’.

So by the president’s own standard, there are 4 ‘rich’ families in every million dollars of debt. That means there are 4,000 ‘rich’ families in a billion.

Can you do the math?

It takes 4 MILLION ‘rich’ families to generate a TRILLION dollars. That is more than the population of EVERY AMERICAN city outside of New York City. It’s larger than Los Angeles, Chicago, Houston and Philadelphia.

Taking it to the current debt level of roughly $17TT, it would take 100% of the gross annual earninings of 68 MILLION ‘rich’ families to knock out the current debt. That is more than the ENTIRE POPULATION of the top 120 American cities combined!

Now look at our current fiscal situation by the actual numbers:

U.S. Tax Revenue:  $2,170,000,000,000
Federal Budget:  $3,820,000,000,000
New Debt:  $1,650,000,000,000
Current National Debt:  $16,500,000,000,000

Next, let’s remove 8 zeros from all the numbers and pretend it is a typical US household budget:

Annual Family Income:  $21,700
Money the Family Spent:  $38,200
New Debt on Credit Card:  $16,500
Outstanding Balance on Credit Card:  $165,000

Are you starting to get the picture???

Discussion

2 thoughts on “Budget Hell

  1. I believe the only true remedy for our debt problem is going to a gold standard, enforcing every government in the world to adhere to such and enforcing 100% full-reserve banking.

    Fractional-reserve banking is the monster perpetuating debt. In effect, imagine if you spent 10x more money then you earned, you could never, ever get out of debt! Yet this is how the banks make money, creating money out of nothing and lending it out at interest.

    Using the Buffet Rule as an example, which would create “supposedly” between $36 billion and $50 billion of additional revenue , we can determine the absolute fallacy of the “redistribution of wealth” theory and smash fractional reserve banking in the mouth.

    Let’s see.. $50 billion divided by 330,000,000 people is about $151 per person.. Is this in one year or over 10 years? I don’t remember, but the point is the same.. Even $151 per year per person isn’t going to make a heck of a lot of difference.. BUT, with the assistance of the Fed and fractional reserve banking:

    This $50 billion dollars becomes an “asset” or a “reserve” for banks to further increase funding for the government, suddenly that $50 billion dollars becomes $625 billion based on a paltry 8% reserves.. Now we are talking about $1890 per person per year, that’s an incredible difference! But it’s fictional, again, would any person ever be able to pay their debt if they were spending 10x their income.. NO.. It is impossible.

    End the Fed

    Posted by whiskey1bravo | April 20, 2012, 4:31 pm

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