If U.S. Were You Making $35,000 a Year, You'd be $135,000 in Debt, and BorrowingSubmitted by James_Madison_Lives on Sat, 01/28/2012 - 23:19
please post widely
One of the best illustrations I've seen for showing how screwed the country is unless we elect Ron Paul, who is the only candidate who understands the situation. If the income side of the US budget were represented by one person making $35,000 per year, then that person would be $135,000 in uncollateralized debt, and borrowing another $7,500 or so to cover expenses every year, mostly from China. That is why Obama just raised the debt ceiling.
The obvious question is how long before the nice lady at the check-out counter hands you back your credit card and says it declined, do you have a different one? How long does China keep lending money before saying "we've decided on a higher interest rate" which will put you a million into debt in no time, since we are not even paying the interest, never mind the principle.
Where is all this money going? The largest part of borrowing is to cover wars and the Pentagon, and bank bailouts.
A series of bailouts, bank rescues and other economic lifelines could end up costing the federal government as much as $23 trillion, the U.S. government’s watchdog over the effort says – a staggering amount that is nearly double the nation’s entire economic output for a year.
Put into the context of this illustration, this amount for bailouts would add another nearly $200,000 to the debt over the coming years, mostly into the pockets of the wealthiest segments of the population. This was a key grievance which launched the Occupy Wall Street movement. David DeGraw, the intellectual founder of OWS and author of “The Economic Elite Vs. The People of the United States,” asserts:
Current statistical societal indicators clearly demonstrate that a strategic attack has been launched and an analysis of current governmental policies prove that conditions for 99% of Americans will continue to deteriorate. The Economic Elite have engineered a financial coup and have brought war to our doorstep… and make no mistake, they have launched a war to eliminate the US middle class.”
Why does Congress continue on this path? Because this is what their financial backers want, and what generates campaign contributions. The citizen's watchdog MAPlight.org found that congressmen who voted for TARP, the "Troubled Assets Relief Program," received nearly 50 percent more in campaign contributions from the financial services industry (an average of about $149,000) than congressmen who voted no.
The assault on the middle class and the funneling of wealth upward has created the greatest level of income and asset inequality since just before the Great Depression. Unsustainable national borrowing could lead to a collapse of the dollar and hyperinflation. Economist Peter Schiff warns of the possible return of bread lines. Some economists warn that without an abrupt change in course, the next Depression will be far worse than the last one.
In his essay "What Life Was Like During the Great Depression," Errol Lincoln Uys writes:
Between 1929 and 1941, 4,000,000 Americans desperate for food and lodging roamed the land. Of this number, 250,000 were teenagers who rode the rails and grew up fast in speeding boxcars, living in hobo jungles, begging on the streets and running from the police and club-wielding railroad guards.
Ron Paul is the only candidate with a plan to address the urgent U.S. financial situation with numbers which actually add up. He is the last best hope for the country.
Peter Schiff: Americans must prepare for deepening unemployment, inflation and possible breadlines
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