- Fourth year in a row of trillion-dollar-plus deficits. – Government spending was 23 % of GDP in 2012 and rising – National debt hit $16 trillion, a new record – GDP was $15 trillion – debt limited was raised $1.2 trillion – Social Security ran a deficit of $45 billion. – USPS lost $16 [...]
A historic piece on Mexico’s debt crisis of 30 years ago. It’s on going effect still is felt today. History has examples of governments explaining how this debt structure is different and how they got it all under control. Read it and ask yourself if anything sounds familiar.
An interesting explanation of national debt and spending I came across on the net.
U.S. tax revenue..$2,170,000,000,000
Recent budget cut..$38,500,000,000
Now, let’s remove 8 zeros and pretend this is a household budget…
Annual family income..$21,700
Money the family spent..$38,200
New debt on credit card..$16,500
Outstanding credit card Balance..$142,710
Total budget cuts..$385
Put things in perspective, doesn’t it?
Here the eloquent and brilliant professor L. Randall Wray explains why government spending is not a big deal, why this cycle is normal. It is an important read since this is the idiocy that even the best and the brightest can come up with. They are able to throw out common sense and embrace this laissez faire attitude towards debt, hoping their predictions are correct instead of controlling debt and being fiscally responsible. If the government causes inflation with its monetary policy and causes it to cost twice as many dollars to buy the same gallon of gas it is very relevant. Read article…