Lesson 1:
Why the U.S. credit rating was downgraded:
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:
Let’s say, you come home from work and find there has been a sewer backup
in your neighborhood, and your home has raw sewage up to your ceilings.
What do you think you should do?
1. Raise the ceilings, or
2. Pump out the sewage.
Your choice is coming in November of 2012.
Excellent!
Mind if I use that?
Lets now remove 8 zeros and pretend its 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
Nicely done
The sewage metaphor is priceless!!! May I use it elsewhere on the internet?
Not a good analogy at all. If the sewage were up to the ceiling you would need to walk away, nothing is salvageable no matter how much pumping is done. Of course the current system is also not salvageable, it must and will collapse, I have no idea what will eventually replace it.