The Federal Debt Crisis Explained
This rather brilliantly cuts thru all the political doublespeak we've been getting lately.
It puts into a much better perspective why the U.S. credit rating was downgraded:
* U.S. Tax revenue: $ 2,170,000,000,000
* Federal 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
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 is filled with raw sewage all the way up to your ceilings.
What do you think you should do ...... Raise the ceilings, or pump out the poo?
Your choice is coming in November 2012.
