And get the twofer. 
Posted on 10/11/2021 10:43:05 AM PDT by gattaca
Maybe this helps with understanding.
NOTE: MANY AMERICANS JUST DON’T FOLLOW OR UNDERSTAND THE FINANCIAL SIDE OF GOVERNMENT. HERE IS A SIMPLE WAY TO VIEW THE PROBLEM OF GOVERNMENT SPENDING.
Lesson #1:
* U.S. Tax revenue: $2,170,000,000,000
* Federal budget: $3,820,000,000,000
* New debt: $1,650,000,000,000
* National debt: $19,271,000,000,000
* 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: $192,710
* 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 pump out the sewage?
Your choice is coming in November 2022.
*sigh* I remember that when it was only 7 zeroes you had to remove...
IT WILL NEVER BE PAID! Just sayin’.
What percent of take home pay goes to interest ?
...the oligarchs/controlling authority must be laughing their collective arses off at my peasantry.
You guys need to raise my credit limit so I can borrow the money to continue making minimum payments on my credit cards, k thanks.
And get the twofer.
Isn’t the national debt closer to $28 Trillion?
Glad I qm not far from keeling over, and I have no children or grand children who have to suffer from this. I really have no idea what to do with my trust and estate built over 35 years of sacrifice. I would like to feel it wasn’t a complete waste of time, but it seems every charity or foundation on earth is just a DNC money laundering scheme
Very good explanation of the magnitude of spending and resulting growth of national debt.
Credit cards are seductive but NOT FREE. I have relatives who charged too much and ended up in bankruptcy court.
When USA national debt gets larger than GDP by some factor, the US$$$ will plummet, imports (now includes oil for gasoline) will cost more and we will turn into Argentina of bygone days.
Both the debt and sewage analogies are good except instead of a credit card, it’s more like a mortgage. If only because the rates are very low, and the Federal government can actually control the rates and force them to be low.
Another way of looking at it is from vantage of the Average American Household
The median household income was $68,400.
The US debt per household is $219,894.
So it’s like having a mortgage, or rather a second mortgage since it’s in addition to the real mortgages people have on their homes, of about 3.2 times your income.
Interest rate paid by the US government in 2020 was 2.0%.
That’s equivalent to $4,398 per household.
So the government debt is still affordable.
But it’s a lot of debt, and we aren’t paying it off.
And that’s $4400 taken from each and every household to pay interest before funding the rest of government.
That rate is expected to go up to 3.2% by 2030. So it’s a variable rate mortgage. That annual interest payment is going to grow to $7000 a year per household if they do let the interest rate rise to 3.2%.
“...Raise the ceilings, or pump out the sewage? “
~~~
Sewage?
I’d raze the whole thing
What’s missing in that analogy is the printing press.
The government has one, that family doesn’t.
Explaining the Social Security Trust Fund
It never existed. From the moment Social Security came into being all money not immediately handed out as benefits was turned over to Congress and spent.
The federal government then issued special “bonds” to itself, which meant that the holder of the bond and the insurer of the bond were one and the same.
The “bond” on one set of books was offset by the corresponding debt on another, they canceled each other out and there were no assets.
FDR and company engaged in keeping double books, something you or I would be sent to jail for.
This would be like if your left hand loaned your right hand money and your right hand issued a promise to repay (after spending the money) AND THEN you went into the bank with the “bond” and tried to claim it as an asset to secure a loan.
You would either discover you’d found the dumbest loan officer that ever lived or they would laugh and laugh … and then turn you in for securities fraud.
Because the American people foolishly trusted their government FDR and company had essentially found the dumbest loan officer that collectively ever lived. It was always from then till now a kind of Ponzi scheme.
But wait!
I hear you say.
Didn’t LBJ start spending the assets in the SS trust and it ran out under Reagan?
So, here’s where we come to what a massive crook LBJ and the Democrats of his day were.
There were no assets. There was a proverbial ledger full of black ink offset by another ledger full of red ink.
For LBJ to spend anything (when the money had already been spent by Congress) he had to ignore the liability (the red ink) and pretend it didn’t exist AND then issue another proverbial ledger complete with new red ink against the black ink elsewhere.
So if the first arrangement, keeping double books, was fraudulent and criminal then the second arrangement simply represented the government insisting money into existence without Congressional approval … basically printing money on the sly,
Poetically we might say that under LBJ they started spending the same moolah twice.
“Glad I qm not far from keeling over”
I hear that expression more and more.
That’s how bad things have gotten... That we take comfort and almost pleasure at the thought we’ll soon be dead.
I always chuckle when I hear it.
Here’s a simpler explanation…
60% of households pay no income taxes, so they don’t care.
Half receive benefits, so they don’t care.
The government borrows, the Fed buys the debt, and no one cares.
It will never be repaid, and no one cares.
The average American could care less.
A people who abuse credit see nothing wrong with a government that abuses credit.
There are memes about folks doing that over one spider.
It’s a literal IQ test.
I will be happy to be a beneficiary...!!!
Seriously, it is difficult to know that your gift will be working long term in the right direction for God and America. A dear lady left a good bit to our local schools because she was ‘high’ on education. They built out an existing building with top of the line interiors only to now need leaky roofs replaced!!! Taxpayers are easy money for them.
Charities wined and dined her as she, like you, had no children. Even her church spent the gift on a project that is a lost (haa!) project.
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