Posted on 12/21/2011 6:16:04 AM PST by tired&retired
Here is an excellent chart from Wikipedia:
Now with simple math: $2,167 Billion Total Revenue less $865 Billion in Social Security leaves $1,297 Billion in Revenue left to run the government and pay the interest on the debt. (Remember, Social Security is running a deficit)
Total debt (on books) currently is $15.1 Trillion or $15,100 Billion
$1,297 Billion divided by $15,100 Billion equals 8.6%
That means that if the average interest rate on our National Debt is 8.6% it takes 100% of our non social security general fund revenues just to pay the interest. Anyone remember 1981 rates?
If the Fed Res were not purchasing the debt and the substitution formula were not used for computing inflation, we would have been gone long ago!
Remember, current Fed policy is very inflationary!
Any solutions?
Worldwide default.
Sorry for typo... 2,162 not 2,167 in total revenue per chart.
Yeah, the low interest rates...stealing from the savers who get zero on their savings to promote giving money to the takers.
How this whole thing has not collapsed yet mystifies me.
They are kicking the can as far as they can, but time and options are running out.
Federal Government annual spending: $3.6 trillion.
Distance light travels in a year: 6 trillion miles (to the moon and back, a half-million mile round-trip, in three seconds).
This means that the Federal Government spends a dollar in less time than it takes light to travel two miles.
I’ve always said - Kill the Federal Reserve and you end Progressive Gov’t and cure 1000 other ills at the same time. Real money and real interest rates are the only things that will force discipline on an out-of-control Government.
Since 2008, Fed deficit spending is about 10% of GDP. Last report 3rd qtr 2011 GDP is at positive 2%. So if you were to remove current deficit spending and go back to 2007 levels, GDP is NOW at negative 8%! Scream it from the rooftops.
When you spend $3.5 trillion and only take in $2.2 trillion, you have a problem. Moreover, the revenue of $2,2 trillion just covers the entitlement programs, other mandatories, and debt servicing costs. The money to operate the rest of the goverment (40% of expenditures) is borrowed.
Unless we reform the entitlement programs, they will consume the entire budget. 10,000 people are reaching 65 every day and will continue to do so for the next 20 years. By 2030, one in every five Americans will be 65 or older, twice what it is now and there will only be two workers for every retiree compared to the current 3.3.
The United States Budget, Plain English
United States 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 cut: $38,500,000,000
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 credit card: $142,710
Total budget cuts: $385
Sort brings the issue “home” doesn’t it?
“Since 2008, Fed deficit spending is about 10% of GDP. Last report 3rd qtr 2011 GDP is at positive 2%. So if you were to remove current deficit spending and go back to 2007 levels, GDP is NOW at negative 8%! Scream it from the rooftops.”
When I looked at the Gov’t GDP chart and the current curve, it is obvious that the books are cooked. I didn’t look at the details, but the numbers are soooo far off that it should be easy to see the false assumptions(lies).
Thank you for doing that... I’m going to do that in a power point slide for a presentation I am preparing. The current numbers are higher than your as the current debt is at $15.1 trillion.
Showing debt as a % of GDP is similar to the tech stocks prior to 2000 when the only way they could justify the prices was to show sales dollars per share. It didn’t matter that many of them were selling at a negative gross margin!
The obvious "solution" is to cut spending, but half the country (or more) is in denial, so there isn't the political will to cut spending.
Guess we'll just go over the cliff.
Thanks for nothing, Failed Leadership.
The Fed could retire the entire debt with one check. They forked out that sum in the last quiet bailout of foreign banks.
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