This rather brilliantly cuts thru all the political doublespeak. The below example puts the present US economic situation in a very clear perspective, it’s the same for many European countries.
Why the U.S. 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:
• Family income: $21,700
• Family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385
The above is what 40 years of incremental and progressive liberalism and free ice cream to buy votes for the next election buys for our children and grandchildren. Presently, we have a President, his Staff, and many of our Congressional Members that are telling the American people that we need 4 more years of this type of government leadership and direction.
Doesn't it matter what the $38K was spent for? If for a house that will permit lower housing costs or for stock in KO that returns 8-10% in a typical year or for a farm -- ? Most families owe far more than they bring in -- the home mortgage may be 5x total income but, until recent crash, was not considered an excessive debt. I fail to see how personal finance can be used as basis for assessing government statistics.
QWAK,marblexx88,Let me explain since you obviously do not REALY understand the concept of MONEY or what it represents.
A 25K house does NOT turn in to a 75K house magicly :(
The BANKERS just create 3X more $$$ out of thin air by advancing 3X more CREDIT/DEBT most of which will NEVER be PAYED back and by doing that the BANKERS skim OFF the TOP huge pay checks and bonuses -- the HOUSE or STOCK or what ever have not changed!
By adding more water to the SOUP you don't get more SOUP -- you get water that just taists like soup as you slowly starve to death with the pot on the stove seeming to be half full!
QWAK,canucanoe,You can not apreciate my perspective of TIME or definition of MONEY so you waist my time and effort even trying!
The weak hands are selling GOLD and SILVER now thease are the speculators buying with leverage geting CRUSHED -- I expect early next year the price of GOLD and SILVER will surge and GOLD hit new highs and SILVER coming close to new highs and later in the year new ALL time high SILVER prices too.
The BANKERS have no choice but to create more new TRILLIONS of $$$ and other FIAT out of thin air SOoooooooooo of corse the price of GOLD and SILVER will reflect that at a mininum.
A major bank failure would likely make that happen sooner and also to much higher prices.
It aint ROCKET SCIENCE!
QWAK,canucanoe,That aint LUCK -- it is INSIGHT and UNDERSTANDING of the diference between CURENCY and REAL MONEY -- GOLD! :)
You aint seen nothing YET -- the BIG MOVES are in the near future! :)
Watch and SEE!! :)
QWAK,With what has happened with M F Global the financial world has changed -- no accounts in any market with any broker are SAFE! :(
The dominoes are falling and just because YOU personaly have not YET noticed or felt the impact, only means -- your part of the slow motion train wreck has not yet reached the place ware the BRIDGE failed -- IT WILL! :(
QWAK,It is called DIVERGENCE :) -- the FIAT substitute for REAL MONEY is imploding every ware! :(
You aint seen nothing yet -- you can't create trillions and trillions of NEW DEBT $$$ and have all the old ones out there circulating -- purchasing the same amounts of any thing.
WAK,alpha,You are such a PUTZ!! Several years ago you could have made some $$$ traiding $$$ for EUROS -- timing is every thing FOOL!
Now the EURO is about to CRASH and soon after will pull down the US DOLLAR!
NO FIAT curency has ever lasted 50 years and the powers that be will take the US DOLLAR down so they can have a one world curency to replace the US DOLLAR as the new GLOBAL CURENCY! :(
BTW: When GOLD was at $300.00 I said it would be over $1000.00 and you gave me FLACK for that TOO --- you will see $2000.00 GOLD in 2012 perhaps much higher! :)
Yikes.. Say it aint so. Arent you the same Dwuck that told us a couple of years ago that the Euro was so much sounder than the dollar. Not to mention that the US & Israel were alos going to attack Iran that summer. And that gold would be $5,000 an o0unce by now.
Arent you that Dwuck.