US Debt Level Hopeless



Posted: Tuesday, December 01, 2009

by
Panama Legal

Introduction If the US Government confiscated everything in the USA they would still be $50 trillion short. The government admits to $12 trillion in debt, which is way too low. The unfunded obligations of social security and Medicare alone are over $100 trillion. So to fund correctly they would need to dump $100 trillion into the fund, which is never going to happen.

Per Capita Debt If we assume a population of 315,000,000 the portion of debt owed by every person man, woman, children etc is $381,000. This means a family of four owes $1,525,000. To put this in perspective imagine a guy earning a gross pay of $50,000 a year getting a mortgage of $2,000,000. The interest only payments would be in excess of $100,000 a year. Impossible for him to repay the mortgage after taxes, food, medical, car etc. This is what the debt picture looks like.

Total Taxes Collected The fed collects about $2.5 trillion in revenue annually, that is it. They are now spending $1.2 trillion more than they take in and the spread is getting worse. Taxes paid are down due to unemployment and bad economy and spending is rising due to sill bailouts.

How Does It End Good question. Eventually the dollar will drop in value. Then inflation will go up. It could be that someone asking "Do you want fries with that" will be making $100,000 a year and then they could be paying $15,000 in taxes and the debt gets repaid this way with cheaper dollars. When the hamburger flipper makes $2000 a week the big Mac is going to cost about $16.00, gas will be about the same per gallon.

Problem is wages never will keep up with price increase, they never do and the people will have much less buying power. If Obama goes to socialist price controls business will not be able to make it and will close. Dismal solution but one that would balance the books but many Americans would not be able to afford to go to work anymore. It would be real change.

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