published Saturday, May 15th, 2010

What would happen to you?

What would happen to you if you had an annual income of, say, $50,000 -- but regularly spent $60,000 year after year?

You know "what" would happen. The only question is "when."

But somehow, many of our highest national officials seem to think they can spend, spend, spend, and despite imposing taxes that are too high, they can run indefinitely in the red, with no inevitable "showdown."

We began operating our federal government that way back in the days of President Franklin D. Roosevelt. As he ran up huge annual deficits, he genially dodged the facts by telling us, "We only owe it to ourselves."

But don't go to the grocery store, pick up all the food you want, then instead of paying the cashier, just tell him that "We only owe it to ourselves."

And if you have a mortgage on your house, don't expect to avoid payments for several months, then tell the mortgage company that "We only owe it to ourselves."

In April, the U.S. Treasury Department reported, the federal government spent $82.7 billion more than it collected in taxes. That's 82, plus 700, then six more zeroes! That's "real money."

That $82.7 billion in red ink in just one month became a part of our total national debt of $12.9 trillion!

"We only owe it to ourselves"? To whom? To lots of people -- many of them overseas -- and to banks, etc. that eventually expect repayment.

In the meantime, they insist on payments of interest on that debt. How much interest? Well, it amounts to more than $400 billion of our tax money each year!

There is no pretense among officials in Washington of paying "off," or even paying "down," the national debt. In fact, we are increasing the national debt about $1.5 trillion each year!

Are we impervious to bad results? Well, Greece, for one current example, hasn't been able to dodge reality. Greece is in terrible financial trouble. Some of its European neighbors are so worried about how Greece's economic irresponsibility will affect them that they are putting some money into Greece to prevent its economic collapse.

Who do you think will be interested in bailing "us," the United States, out to the tune of $12.9 trillion?

Inevitably, with people, companies and nations, there are consequences. We don't want any of the bad results. But neither the president nor the majority in Congress -- nor most of us -- want to face the facts.

We can't run our family budgets that way. We shouldn't try to run our national budgets that way. Who wants to suffer the bad results?

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nucanuck said...

The government can print all the money needed and we will live happily ever after.

May 15, 2010 at 12:28 a.m.
EaTn said...

The recent Obama stimulus has saved the country from a possible depression and now the economy is well into a recovery. Where would we be if the GOP were still in control?

May 15, 2010 at 5:17 a.m.

Obama is our savior, things haven't been better since he took office. The disappointment in our government officials is merely a figment of our imagination. Shut up sit down, let Obama wash away our worries. Praise Obama. P.S. It's all Bush's fault.

May 15, 2010 at 9:49 a.m.
captainrt said...

I think of the line from the movie "TITANIC" when the owner and the builder are looking over the damage: "But this ship can't sink!" "She's made of iron, I assure you she can-and she will" It is just a matter of time before our feet get wet. Perhaps the survivors will learn from it, until the next time.

May 15, 2010 at 10:10 a.m.
EaTn said...

captainrt- most people have a selected short memory. They forgot the lessons in Vietnam when they supported the war in Iraq. They forgot the Great Depression and will forget the near-depression of 2008 when they vote out those who supported the stimulus that saved the economy. People want less government as long as they can keep pieces of the government that benefits them personally.

May 15, 2010 at 10:21 a.m.
carlB said...

Saturday, May 15, 2010 What would happen to you? But somehow, many of our highest national officials seem to think they can spend, spend, spend, and despite imposing taxes that are too high, they can run indefinitely in the red, with no inevitable "showdown."


Reply: The Republicans have been "acting" as if they are the only people "entitled" to run this Nation even though they lost the last election and are not happy when they cannot "sway" the people with their lying and misinformation. It is my opinion that if the Republicans had won the last Presidential election, the US along with other countries would be in a deep depression at this time for we had been in a recession since 2007. There is simple logic in why I say this; would the Republicans have continued spending, past the "bailout money," the needed money as in the stimulus recovery plan to stabilize the effects of the recession?

Which party is the destroyer of this Nation"? We don't need to go back 200 to 300 years since we are living in the circumstances of the present conditions which has been the results taking place during the last 12 to 30 years.

When W. Bush took over, the party still had to make President Clinton the evil one, who did not do any good for the country nor could any of the Democrats.

This attitude convinced the voters that everything Clinton did while in office was insufficent, since President Clinton did not cut taxes. So the Republicans got their tax cuts passed.

After that we had the 9/11 events, the pay outs were not funded, the Afghanistan war was not funded, the Iraq war was not funded, the "No, child left behind was not funded and the medicare prescription bill was not funded. During the Cheney/Bush eight years, the Government budget deficit increased from the $4.0 trillion to $12.0 trillion.

This was bad enough, but there were other things happening with our trade policies, manufacturing jobs being lost, service jobs being outsourced and more companies going global with encouragement in firming up their monopolies of imported goods, setting record trade deficits.

We have to include the fraud and the greed of the financial systems, which was the "straw which broke the camel's back." All of these unfinished conditions were passed over to the new President Obama and his administration in January, 2009. What a setup it was!

May 15, 2010 at 2:28 p.m.
catlady1 said...

I get quite a laugh reading the editorials on the right hand side of the page. Every day there will be one about taxes being too high (from a state with NO income taxes) and Obama plunging the nation into socialism. Every day!

NEVER included is the mess the Republicans made when they were in charge. Agree with Obama's way or not, surely that ought to be mentioned!

I have to wonder what kind of idiots don't see this? I guess the same that run the same editorials every day.

May 16, 2010 at 12:56 p.m.
catlady1 said...

What would happen to you if you lost your job? If your identity was stolen and your house taken? If you had an illness that cost a couple of a million dollars? What would happen if your daughter was raped? If the food you ate was bad? If your car's brakes were improperly sealed? What would happen if the bridge you are crossing tumbled? If a tornado tore through your home and business? What would happen if you worked 40 years for the same company to find that your pension was worthless? Or the money you put in the bank mysteriously disappeared?

For all these things, the government would help. But, hey, since YOU don't need them right now, we should get rid of them!

What if everyone considered you to be one of THOSE PEOPLE because you got sick or didn't go to Harvard or invested in a failed business? It's all your fault anyway--we sure don't want to help moochers like you!

May 16, 2010 at 1:04 p.m.
carlB said...

Obama is our savior, things haven't been better since he took office. The disappointment in our government officials is merely a figment of our imagination. Shut up sit down, let Obama wash away our worries. Praise Obama. P.S. It's all Bush's fault. Username: Cleveland_Steamer | On: May 15, 2010 at 9:49 a.m


Reply: Some times the facts speak for themselves and it is hard to put a "pretty face" on the truth.

Closing The Book On The Bush Legacy http://www.theatlantic.com/politics/archive/2009/09/closing-the-book-on-the-bush-legacy/26402

On every major measurement, the Census Bureau report shows that the country lost ground during Bush's two terms. While Bush was in office, the median household income declined, poverty increased, childhood poverty increased even more, and the number of Americans without health insurance spiked. By contrast, the country's condition improved on each of those measures during Bill Clinton's two terms, often substantially. It's not a record many Republicans are likely to point to with pride.

16 May 2010 The US Intelligentsia and Middle Class Are In the Firm Grip of Fear, Fraud and Denial http://jessescrossroadscafe.blogspot.com/

May 16, 2010 at 6:17 p.m.
rolando said...

Yep. Yur right, CleavelandSteamer...it is all Bush's fault. We will hear that right up to 2020 and beyond. Some folks here just don't larn nuttin.

Nice post, BTW. Not sure if all here got it.

May 16, 2010 at 6:39 p.m.
carlB said...

Obama is our savior, things haven't been better since he took office. The disappointment in our government officials is merely a figment of our imagination. Shut up sit down, let Obama wash away our worries. Praise Obama. P.S. It's all Bush's fault. Username: Cleveland_Steamer | On: May 15, 2010 at 9:49 a.m.


Reply: SO,you are trying a "little" sarcasm as if this entire past processes and the crisis conditions of this Nation can be passed off as if what happened was a "big joke" on the country. The voters spoke at the voting booths to elect the CheneyBush W. ticket "one time" and then the voters spoke again in 2008 at the voting booths to give Obama enough State electoral votes and also the majority of the populous votes.
The Democratic process prevailed because the voters started thinking for themselves instead of staying "dumbed down" with the continuous lying and misinformation. Which by the way is still being "Passed out" to divide the people.

Either the country is in the many crisis conditions or it is not? There apparently are some people who are continuing to deny that the US is even in a financial recession. It might be, from the signals being sent out by some groups, they appear to want the country to fall into "oblivion." Then what? Which of the crisis issues is most important for the new administration to deal with? At this time it is already history in the making, but this financial recession was so deep from the years it took before the final straw of fraud and greed was used to suck the life out of the financial systems.

May 17, 2010 at 10:05 a.m.

Carl and harpies are leaving out another wee bit of info again. The Repub Congress during Clinton's years saved his buttocks (while he was fiddling with the interns and letting Serb Churches burn and be bombed), and the Dem Congress and the Dem n'er-do-wells like Barney Frank, Chris Dodd, Pelosi et al were diddling, fiddling and fidaddling during the Bush years, causing a huge pre-financial crash of the mortgage markets. BTW, the first half or so of the Bush years, REAL jobs increased, unemployment hovered around 4-4.5% depending on the state. Now, this isn't to say Clinton, Bush and Obama have done everything evil. It's just of all three, Obama so far, has done the most evil.

For those above who live in a Bubble here in TN or whatever state they're blogging from, get a reality check (catlady, where pray tell is all this wonderful money going to come from that will cure all the ills you mentioned? Dream on).

There is no "recovery" yet. Worldwide and here in the US, economic analysts are cautioning and warning about the worst to come.

Before you all wet your pants in glee over what Obama hasn't really done (but you imagine he's done), let history and truth play out. No one in the Presidents office or in another Congress has run up debt in the trillions as these ones have in the last 4 years. So, your elation is premature geniuses. For not being able to discern History and Economics 101, you all get an 'F' and a severe paddling to boot.

May 17, 2010 at 10:34 a.m.
carlB said...

There is no "recovery" yet. Worldwide and here in the US, economic analysts are cautioning and warning about the worst to come.

canaryinthecoalmine | On: May 17, 2010 at 10:34 a.m.

Reply: Of course there is not a full recovery here or in other countries! This is going to take a looong time wiout the private investors. Why don't you prove to to yourself and me the stimulus recovery money has not had a positive effect for the purposes that it was designed to do? Regardless of all the Republicans trying to sabotage it's use in some states?

May 17, 2010 at 6:08 p.m.

I'd say 20+ trillion MORE DEBT perpetuated on Obama's watch is proof enough bub. Proof enough. Wait and see.

May 18, 2010 at 10:31 a.m.
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