Jump to bottom


1 Bob Dillon  Fri, Aug 5, 2011 5:31:10pm

Every law, regulation, and tax passed by Congress requires countless Federal employees to implement, monitor, and enforce. All this costs money.

America now owes over $14.5 Trillion. That’s over $46,000 per American (including children), or more accurately, over $130,000 per tax-paying American.

The Federal government’s revenue is just over $2.2 Trillion per year. It currently spends $3.6 Trillion per year. Those numbers are beyond normal human comprehension. So, let’s put them into perspective: The average American
household has an income of about $50,000 per year. If that average household ran like the Federal government it would spend $87,833 per year, and would already have credit card balances of $310,741.

Do you see the problem? The Chinese obviously do.

The debt ceiling deal is exactly like this hypothetical household running into its credit limit, but rather than bringing its spending below its income, it raises its credit limit. This has been Congress’ answer to the national debt
every time it has reached its credit limit. Rather than addressing the problem, Congress simply raises the credit limit. We all know where that ends.

America’s credit limit has a ceiling that cannot be raised by Congress, and we are about to bash our heads into it. Federal revenue is about $2.2 Trillion per year. (That amount changes depending upon the economy, inflation, and tax rates, but history shows that tax revenues never exceed a certain percentage of its gross national product.) We currently owe $14.5 Trillion.

That’s more than 6.6 times our annual revenue. If the Federal government stopped spending a dime, today, it would take more than six and a half years to pay off our debt, and that is assuming no interest. That is if we spent $0 on defense, $0 on infrastructure, $0 on social security, $0 on medicare, $0 on Federal employees and $0 on everything else, and paid no
interest on our debt. Do you see the problem yet?

Interest on the debt: Interest on the debt is what creates a credit limit that cannot be removed by legislation. In the near future the interest payments alone will exceed Federal revenue. Interest payments alone for this year will be $412 Billion. That’s just under 19% of the Fed gov’s revenue.

The Congressional Budget Office says that in about 30 years interest on the national debt will equal 100% of the Federal revenue. THIS is our absolute credit limit.

At this point 100% of the money collected from Americans will be needed to pay interest on debt alone. No defense, infrastructure, social security, medicare, education, welfare, unemployment, federal employees, or anything else will be
paid by the Federal government. This, of course means that the Federal government would no longer be able to collect its revenue, because the Federal government would no longer exist.

The real collapse would happen much sooner than this. Once the Federal government is forced to spend 50% or 60% to pay interest on the debt, it will seriously lose its ability to run the
country. This will also force it to borrow more money, accelerating the death spiral.

The CBO’s estimate assumes that Congress won’t raise spending (yeah, right) and that global interest rates will not increase. If either of these things happen, and they both will, then the absolute credit limit moves closer to the present.

This is why the debt debate is not a political debate. It's not really a debate at all. We are now dealing with hard economics that someday soon nobody will be able to deny.

2 (I Stand By What I Said Whatever It Was)  Fri, Aug 5, 2011 10:47:44pm

re: #1 Bobibutu

That's partially lifted from [Link:] isn't it?

3 Bob Dillon  Sat, Aug 6, 2011 5:20:55am

re: #2 000G

Yep ... and the math is correct.

4 Bob Dillon  Sat, Aug 6, 2011 5:53:52am

This page has been archived.
Comments are closed.

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2016-01-01 10:29 am PST
LGF User's Guide RSS Feeds Tweet

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Donate with
Square Cash Shop at amazon
as an LGF Associate!
Recent PagesClick to refresh
LA Times-Inside the Mt Wilson Fire Fighting Effort If I recall it was Ojoe that would post images from the Mt Wilson webcam and I seem to have picked up the habit. But mostly because I half taught myself to shoot landscape up there. Heck if I ...
3 hours, 2 minutes ago
Views: 65 • Comments: 0 • Rating: 1
Tweets: 2 • Share to Facebook
Trump’s Disregard for Human Life Has Resulted in 200K Deaths and CDC Guidance That Can’t Be Trust… As America's Covid-19 death toll passes another grim milestone the devastating consequences of President Trump's disregard for human life are still becoming clear, as they did this week when the CDC mysteriously removed guidance from their website indicating that ...
3 days, 9 hours ago
Views: 279 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
#Thegreatpoolpondconversion - 200920 There's always an issue of weeds on a paver deck. We weed whacked the deck before power washing.Then we couldn't get the deck sealer and paint down fast enough.So lots of weeds started coming up through the cracks.There's no ...
4 days, 1 hour ago
Views: 331 • Comments: 1 • Rating: 6
Tweets: 0 • Share to Facebook
ON the Agency of Objects — Protagony One: Joipatreon: patreon.comtumblr: innuendostudios.tumblr.comtwitter: @InnuendoStudiostranscript:
5 days, 6 hours ago
Views: 386 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
AJR - Bummerland (Official Video) BUMMERLAND OUT NOW Check us out everywhere online @AJRBrothers Directed by Edoardo Ranaboldo Bummerland Lyrics: BummerlandHere I amBetter nix my summer plansBummerlandGive a cheerCause you’re only going up from here This monthI got seven haircutsAnd now my hair ...
6 days, 7 hours ago
Views: 425 • Comments: 1 • Rating: 0
Tweets: 1 • Share to Facebook
London Grammar - Baby It’s You (Trizz Visual) Baby It’s You - Listen Now: “It's always a pleasure to work on a music video, but it's tenfold when you are a fan. I instantly connected with London Grammar, from the cinematic mood to the expansiveness in ...
6 days, 7 hours ago
Views: 427 • Comments: 1 • Rating: 0
Tweets: 1 • Share to Facebook
Sam Smith - Diamonds Diamonds out now: Pre-order 'Love Goes' out 30th October: Directed by: Luke Monaghan LyricsHave it allRip our memories off the wallAll the special things I boughtThey mean nothing to me any moreBut to youThey were everything we ...
6 days, 7 hours ago
Views: 419 • Comments: 1 • Rating: 0
Tweets: 1 • Share to Facebook
Chris Mike - Limerence - Official Video Taken from the album "Socialholic", out October 16th, 2020CLICK HERE TO PRE-SAVE: All music written by Chris Mike.Produced and mixed by Chris Mike. "Socialholic" album track listing:1. Headbang2. Limerence3. Wildfire (feat. Derek Sherinian)4. Velour5. Rue Flower6. Socialholic7. Detox ...
6 days, 8 hours ago
Views: 432 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
YOUR HONOR Trailer (2020) Bryan Cranston New SeriesYOUR HONOR Trailer (2020) Bryan Cranston New Series© 2020 - Showtime
6 days, 8 hours ago
Views: 474 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
LOVE and MONSTERS Trailer (2020) Dylan O’Brien, Jessica Henwick MovieLOVE AND MONSTERS Trailer (2020) Dylan O'Brien, Jessica Henwick Movie© 2020 - Paramount
6 days, 8 hours ago
Views: 489 • Comments: 1 • Rating: 1
Tweets: 1 • Share to Facebook