This is a cross-post I got from an aquaintance of mine. I think it clearly explains what the government is doing to the value of our money. Pay attention people! It's the future of yourselves and your children going down the tubes here.
If you are like many, who either doubt or just can't accept the idea of "the end" of America as we know it, have I got a story for you!
I've got a bunch of young employees, 20 somethings, who kinda-sorta watch the news and have more questions than answers - to which they always direct at me to tell them how to interpret (God help them)
Lately they've been asking me almost daily about the economy etc, and I finally gave in. I must have done a decent job, because they all just sat there - and said nothing (a miracle for this bunch)
To avoid mind boggling numbers that no one can really grasp (trillions), let's make this personal;
You make $22,000 a year (Fed Gov revenue is $2.2 trillion)
You spend $35,000 a year (Fed Gov [expenses] budget is $3.5 trillion)
You've been reckless like this for years and now you have $140,000 in "un-secured" debt-credit cards etc. (Fed Gov debt is $14 trillion)
Now the debt has become so huge that the INTEREST on that debt, is almost as much as your income - $17,000
You approach your family about cutting back - or at least not spending more than you make, but all you get is "why do you hate me so much?", "how can you do this to me?"
So you bring in some experts (Congress) but all they do is sit around - bitch and moan - and when push comes to shove, their "Grand Plan" includes a whopping cut of $319 per yr.
You get upset with them, and although some say they really wanted to cut more from your budget, others scream at you that to do anything more your kids would starve and your wife would be eating dog food.
There you go. You make $22k, spend $35k, have $140k in debt - and the plan for NEXT year is to spend $37k.
Not only are you spending $13k a yr MORE than you make, but the interest is now almost as much as your gross income.
You're smart though - or so you think, and you start printing money in your basement. But the creditors are pretty smart too. They KNOW what you are up to, and now they are making you pay 2 and 3 times as much, because your money is worth a lot less (because it's based on - nothing)
So tell me, how do you think the story ends?
I've got a bunch of young employees, 20 somethings, who kinda-sorta watch the news and have more questions than answers - to which they always direct at me to tell them how to interpret (God help them)
Lately they've been asking me almost daily about the economy etc, and I finally gave in. I must have done a decent job, because they all just sat there - and said nothing (a miracle for this bunch)
To avoid mind boggling numbers that no one can really grasp (trillions), let's make this personal;
You make $22,000 a year (Fed Gov revenue is $2.2 trillion)
You spend $35,000 a year (Fed Gov [expenses] budget is $3.5 trillion)
You've been reckless like this for years and now you have $140,000 in "un-secured" debt-credit cards etc. (Fed Gov debt is $14 trillion)
Now the debt has become so huge that the INTEREST on that debt, is almost as much as your income - $17,000
You approach your family about cutting back - or at least not spending more than you make, but all you get is "why do you hate me so much?", "how can you do this to me?"
So you bring in some experts (Congress) but all they do is sit around - bitch and moan - and when push comes to shove, their "Grand Plan" includes a whopping cut of $319 per yr.
You get upset with them, and although some say they really wanted to cut more from your budget, others scream at you that to do anything more your kids would starve and your wife would be eating dog food.
There you go. You make $22k, spend $35k, have $140k in debt - and the plan for NEXT year is to spend $37k.
Not only are you spending $13k a yr MORE than you make, but the interest is now almost as much as your gross income.
You're smart though - or so you think, and you start printing money in your basement. But the creditors are pretty smart too. They KNOW what you are up to, and now they are making you pay 2 and 3 times as much, because your money is worth a lot less (because it's based on - nothing)
So tell me, how do you think the story ends?
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