Posted by
drpete on Saturday, May 30, 2009 1:37:41 PM
At the end of 2008 the federal government had debt obligations of $63.8 trillion, up $6.8 trillion from the end of 2007. That's $546,668 per U.S. household, up $55,000 from the end of 2007.
- $284,288 or 52% per household is for Medicare
- $160,126 or 29.3% per household is for Social Security
- $54,537 or 10% per household is for federal debt
- $29,694 or 5.4% per household is for military retirement
- $15,851 or 2.9% per household is for civil servant retirement
- $2,172 or 0.4% per household is for miscellaneous
"We the people" are ultimately responsible for all of this debt. In addition, the average U.S. household has leveraged itself on its own to the tune of $121,953 in current debt.
- $89,514 or 73.4% for mortgages
- $22,231 or 18.2% for consumer debt
- $10,208 or 8.4% for other
(The above data is from USA Today May 29, 2009.)
For a bit of context for that $63.8 trillion U.S. debt, according to
the International Monetary Fund, the world's GDP for 2008 was $63.7
trillion, the European Union was $18.4 trillion, and the USA's 2008 GDP
was $14.26 trillion. China's 2008 GDP was $4.4 trillion, and it's the
largest foreign holder of America's debt.
The average U.S. household, then, has debt obligations as of the end of 2008 of $668,621. And that average U.S. household has total assets of less than $210,000 and a net worth (assets minus personal liabilities) of less than $90,000.
The average adult American has saved less than $25,000 total, including for retirement. More than half of folks over the age of 55 have saved well less than $50,000. The best news is that 42% of those over 55 have saved more than $100,000, and 19% of them were over a quarter-mil. The bad news is that many -- even the most frugal and wise -- after the first five months of 2009 have lost 35-40% of that. Social Security? Insolvent, I predict, by 2014. Medicare? Ditto.
The average American household as of the end of 2008, when their share of the federal government's liabilities is spread, was ($90,000 minus $546,668) upside down by $456,000. (It would clearly be a cheap shot here to talk "spread the wealth", dontcha think?) By the end of 2009, the average American family will be upside down to the ChiComs,
et al, by about $600,000.
The average American household has annual gross income of just over $50,000. Net, for sake of argument let's say, is $40,000 after federal income and payroll taxes and state taxes. If government balanced the budget this New Year's Eve, incurring absolutely not a penny of new debt after the ball drops, (Don't be cynical now. Quit laughing. Just play along, okay?), and the people of America -- each and every one of them, no exceptions, singing in concert,
a capella -- committed to eliminating that debt a.s.a.p., what would it take? With interest on the debt at, say, 4% per year, it'd be like paying a mortgage. To pay off the $600,000 over 30 years, the payments would total about $1.8 million. That'd take $60,000 per household per year. Bit of a problem there, mates.
The pendulum? America has been in big trouble before and has survived and thrived? We've had the liberal fascism of Wilson and FDR, then of JFK (albeit short) and LBJ, followed by the liberalism of Nixon, the dumbness of Ford, the utter liberal incompetence of Carter, the waffling softness of Bush 41, the grandstand of Clinton, the liberalism of Bush 43; and we've survived. Right? A few were inconsequential; some were devastating; the devastating were better at devastating than Obama; but, Obama has the debt picture. The enormous debt is what's different, what's unprecedented.
President Obama has the possibility -- no, the liklihood -- of accomplishing the most devastation of all, the remaking of America wherein personal liberty is extinguished, the U.S.
Constitution dumped in the trash as obsolete and counter-utopian, the oligarchy of the liberal-fascist elite in charge . . . of everything, and for generations, if not centuries.
President Obama, Rahm Emanuel, and the rest of the oligarchy
know that unrest is growing, albeit slowly. They
know what the Tea Parties were really about. That is why the President is trying to rally congress to pass his "universal healthcare" plan this year, gotta be in 2009. They
think that healthcare is the straw that will break Americans' back and make the silent majority silent no more. But, like Social Security and Medicare, like the minimum wage and the Wagner Act, like the New Deal and the Great Society; once done, it's done. Permanent.
In an
earlier post a couple of weeks ago, I pointed out that, "
There is no example of a congress or
executive branch ever attempting to actually reduce the size of government or
reduce the budget. Not once. When “budget cuts” were talked about – touted by
Republicans, impugned by Democrats – each was demagogueing. They all snuck in
an annual presumption of 8% growth in each line item, then if Republicans
proposed, say, and increase of only 5%, the charges of starving children
started."
Later in that same earlier post, I said with respect to the alleged conventional-wisdom pendulum, "What
happens is that that liberals floor the accelerator, followed by conservatives
coasting or braking a bit, etc, etc. There’s no turn signal. There’s no
u-turn. The gear shift has 2nd and drive, but no
reverse."
So, boys and girls,is there any hope? The current liberal-fascist oligarchy will certainly consider, and almost-certainly decide on, having the Federal Reserve Bank print more currency and sell it the the Treasury. The results of that move are: (1) provide more money for the federal government to spend or "invest"; (2) reduce the value of the U.S. dollar
versus other currencies; (3) cause inflation or hyperinflation; (4) effectively reduce U.S. debt to China,
et al; (5) effectively reduce the indebtedness of the American people; (6) make everything bought with $US much much more expensive; and (7) increase the attractiveness of owning anything else other than $US; and (8) make China,
et al, really angry. Federal Reserve Chairman Ben Bernanke was appointed to a four-year term in 2006 by President George W. Bush. President Obama will get to appoint a Fed Chair in 2010, and Bernanke's behavior of late suggests that he's running for the job.
So, guys and dolls, is there any hope? So, what if America elects Republicans in 2010 to majorities in both the House and Senate? Won't that stop this, even turn it around? If you believe that the likes of McCain, Snowe, Shelby, Murkowski, Crist (Replacing Martinez), Grassley, Bond, Voinavich, Bennett, Alexander, Corker, and the rest of that gang just in the senate -- inspired one and all by Colin Powell -- will git'r done and are gonna lead us back to the promised land, then you're at least an order of fries short of a Happy Meal.
In
another earlier post I noted that in 2006 some 2/3 of what the federal government is and does is unconstitutional. Assisted first by Democrat majorities in congress, that went to 75% by the 2009 presidential inauguration. With the current administration and congress, I expect it to be 80% by January of 2010.
So, Townhall patriots all, is there any hope?
If true-conservative majorities were elected to congress in 2010, both House and Senate, their majorities increased in 2012, and President Obama was ousted by a true-conservative prexy, might that do it? Who are your must-have handful of senators and handful of congressmen that must be there?
Okay you cynics ( and realists?), is revolution the only answer? A conservative coup? Will it take millions and millions of tea drinkers or dumpers invading Washington DC, shutting down the congress, shutting down the Supremes, and etc.? Will it also take millions and millions of those with EINs (Employer Identification Numbers) refusing to withhold and forward taxes? Will it take millions of military, including National Guard and retirees, and millions of police, fire and rescue personnel defending and protecting the Constitution at the expense of the government?