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  • jnichols_962711 jnichols_962711 Jan 11, 2013 5:05 PM Flag

    Fiscal Cliff in Laymens terms


    For those of you who have either been in the military or associate with the government should understand this!

    Army Community Service or ACS gives free financial planning classes to young new Soldiers free of cost. Our nations administrators should attend.

    Fiscal Cliff (put in a much better perspective).

    Lesson # 1:

    * 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 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 remove the shizz.


    Sentiment: Strong Buy

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    • Sorry, but your analogy is so untrue, it's a waste of time to rebut it, but I'll just make a basic point here that should make it obvious.

      Most families don't have fictional members who make billions and hundreds of billions of dollars in profits and revenues, and then ask the family for money back at the end of the year, for employing family members. Most large corporations not only do not pay any taxes at the end of the year, but these days, they are so smart, they get money back. They use our infrastructure, they build businesses, and then they pay those inordinate dollars back to the wealthy managers, who are not even the owners of the companies. They also hoard those dollars and find more ways to put those dollars to work in other countries where the tax rate is much higher, and where, get this, their local affiliates actually do pay taxes... because they have to, just to have access to those other local markets.

      Your family doesn't have millions of fictional members who could pay their fair share of taxes, but do not... nor does it have real, rich members, like Mitt Romney, who do the same.

      That's not even the least of these analogies. The Fiscal Cliff is NOT about the deficit. It's about government paying the bills it has ALREADY accumulated. Either the Republicans will WILLFULLY default on our debts, like some frikin' banana republic, our obnoxious banana republicans, or they won't. If they default, it will destroy our national credit rating and make our debt costs go massively higher, and it is the Republicans who got us here. We had a surplus before Bush came in an ran two wars, one unnecessary, and then cut the government revenue, intentionally to create deficits so that they'd have an excuse to cut popular social programs like medicare and social security, with the false excuse, that "we can't afford them". Social Security runs a surplus, and actually subsidizes the federal government right now.

      The problem with Republicans is you have wealthy interests who want to make Americans serfs in our own land, who can be exploited like workers in other parts of the world, and the first step to doing that is destroying the power of government to create equality in opportunity, in things like education, health and retirement options, as well as in basic needs like housing and preventing wholesale starvation. If you can get rid of that, and discipline the work force into recognizing that life is short, nasty and brutish, you can get even more resources to that top 1% so that they can take their rightful place, as aristocracy in charge... so we are still fighting that revolutionary war, it's just, the aristocracy liked the colonies and came over and took it back... and today, they run the GOP.

      • 1 Reply to westley.prince
      • By the way, the reason debt is low cost now is because there is a lack of consumption by consumers, cutting the deficit right now would be destructive to the economy. The purpose of preventing the "FISCAL CLIFF" is to prevent government spending from going down too quickly, NOT to cut expenses. This is a lie that the GOP has perpetrated to confuse it's own constituency. The Fiscal Cliff, is a recession caused by a sudden drop in government spending... you guys really need to go and learn some basic economics.

    • Eventually, we run out of money,, the dollar is tanking now,, the US was once the most powerful, rich place on earth,, not now,, our creditors have us by the balls,,

      Sentiment: Hold

    • I have used the same type example in many discussions with friends. BTW it was the Republican Party who in Bush's first term kept insisting the budget deficit didn't matter...Oops.


      Sentiment: Buy

      • 1 Reply to larsondaviss
      • Yes, Lars.., the man pulling the presidential strings, the real pres.- Cheney -, said it repeatedly. Both Pres. HWB I and Reagan also agreed as they pushed the national debt to record highs, too. Clinton responnsibly produced a great surplus which the Repubs. squandered asap. Jerry Brown, California's new Dem. governor, has reported many many hundreds of milllions of dollars surplus just as he did in the 1970s - after the many previous Repub. governors ran our state into the gutter after their spending. Yes, San Diego Union Tribune, the local rag, (a Repub.paper reported the Brown surplus this morning Frankly, I am surprised by that. Husband reads it every day. I don't. I used to read the L.A. Times - better journalism then. I also read the Wall St. Jourmnal before it was acquired by that London guy who owns Fox News and many other right wing publications around the world. I remember when in the late 1970s he said that he who owns the media owns the world. Well, this is 2013 and he's done a good job of owning media all over the world.). GLTAL.. Have a great week-end.

        Sentiment: Strong Buy