How Close Is The US To Bankruptcy By Marjory Wildcraft

Today’s article was written by Gabe Elton of Austin Rare Coins & Bullion (http://www.austincoins.com)

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If the United States Government Were a Family – A Lesson In Numbers

The numbers used by our politicians today are mind-numbing. To hear the words billion and trillion being tossed around on a daily basis has us impervious to what these numbers really mean.

Perhaps this is the reason for our current course: many of us simply can’t comprehend what a trillion dollars actually is. Recently some have compared the budget of the United States to the budget of a family household. The numbers below are real numbers with several zero’s taken off to make them smaller, more simplistic, and easier to understand. The actual data is the exact equivalent to the recent fiscal cliff deal passed by the Congress.

If the U.S. Government were a Family
Annual Income: $58,000/year
Expenses: $75,000/year
Credit Card Debt: $327,000
Proposed Cuts: $3,000/year
Revised Expenses: $72,000/year

Keep in mind, the U.S. government still has $327,000 in credit card debt, and don’t forget the interest. In fact, by February of this year, Congress will have hearings not to figure out how to reduce that credit card debt, but to find out who will be calling their credit card company to see if their limit can be raised.

The $3,000 in spending cuts that Congress spent day and night arguing over during the Christmas and New Year holidays is a drop in the bucket compared to our deficit. This is no way to run a family and it is certainly no way to run a government.

Common sense alone tells you that this experiment in

loose monetary policy can’t go well. History has proven time and time again that you can not print your way to prosperity. Every single case of hyper-inflation was preceded by government deficits getting out of control!

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So the US is already way past bankrupt!

Let’s hope no one notices for another few years…

Marjory

PS: I have some fascinating interviews with Cubans about how they survived economic collapse. I‘ll post them for you soon.