To understand the U.S. financial position, just remove 8 zeros and pretend it’s a household budget.
Then is would look something like this in numbers the average American (including me) can understand:
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
The U.S. is trying to bring their budget under control. This year they implemented total budget cuts of $385. Assuming they don’t spend more than they raise in taxes, it will take them 370 years to pay back this debt.
The bi-partisan U.S. Super Committee is currently discussing proposals to cut spending by $12,000 over 10 years.
At $1,200 in saving per year and assuming they balance the budget, it will then take them a mere 119 year to pay back the debt.
That should clarify the position......what position is that?........SNAFU and FUBAR.
