Brilliantly explained!!! The national debt In terms we can ALL understand!

Brilliant! In terms we can ALL understand!

This is one of the best explanations of this country’s economic condition I ever received…that is why I’m sending it out to you… Maybe you will appreciate it as I did…

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: $385

Got It ?????

OK now:

Lesson # 2:
Here’s another way to look at the Debt Ceiling:
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 pump out the crap? Your choice is coming Nov. 2012


I’m for pumping out the crap…

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1 Response to Brilliantly explained!!! The national debt In terms we can ALL understand!

  1. Robyn Swaim says:

    What Happens If the Debt Ceiling Isn’t Raised?

    Once the debt ceiling is reached, Treasury cannot auction new Treasury notes. It must rely on incoming revenue to pay ongoing Federal government expenses. This happened in 1996, and Treasury announced it could not send out Social Security checks.

    Competing Federal regulations make it unclear how Treasury could decide which bills to pay, and which to delay. Owners of the debt would get concerned that they may not get paid.

    If Treasury did actually default on its interest payments, three things would happen. First, the federal government could no longer pay any its employees’ salaries or benefits. All those receiving Social Security, Medicare, and Medicaid payments would go without. Federal buildings, and services, would close. Second, the yields of Treasury notes sold on the secondary market would rise. This would create higher interest rates, increasing the cost of doing business and buying a home. This would slow economic growth. Third, foreigners would dump their holdings. This would cause the dollar to plummet, probably removing its status as the world’s reserve currency. The standard of living in America would decline. This would make it highly unlikely that the U.S. could ever repay its debt. For all these reasons, Congress shouldn’t monkey around with raising the debt ceiling. If members are concerned with government spending, they should get serious about adopting a more conservative fiscal policy long before the debt ceiling needs to be raised.

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