The Debt Problem

The United States national debt now stands at over $11,220,000,000,000 ($11.22 trillion). That is big. How big is it? Consider this: last year the federal government took in $2.66 trillion in revenue. If the US stopped spending money right now and only payed down the debt, it would take 4.2 years to pay off the debt. And that is assuming that the revenue will stay constant. Seeing how the economy has fallen off a cliff since last year, the federal revenues will most likely decrease this year. Pres. Obama is increasing spending, so the debt is set to skyrocket.

To make an analogy, imagine you buy a house with a mortgage. Let's say you make $40,000 (average American) a year, and you find a nice place for $170,000. This is quite reasonable, right? Now, the friendly guy at the bank sees that you are a busy guy with a family, so he fixes it up so you only have to pay the interest for a few years, that should make life easier, just pay it back when you can. This nice banker also signs you up for a home equity loan, just in case you need a little extra cash every once in a while. After moving in, you find your bills add up to just about what you bring home every month. Then your boss cuts your hours a bit. The kids want to take soccer lessons. And they want a new pool. And they want to go to the fancy private school. And your wife wants a new car and some pearl earrings. So you dip into that HEL and only pay the minimum due on your mortgage. You can do this for a while, but eventually the bank will want the money back. How soon will it be before you end up on the street?

I think the ruse will be up as soon as the lenders start asking for the principle back.

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Big difference is

the person in your analogy learned how to pass the mortgage on to his kids and grandkids.

We will use the same technique as the last 2 times.

Only the name will be changed . . . to WW 3. The target will be changed to the USofA.