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Why S&P downgraded the US credit rating

Here is why S&P downgraded the US credit rating.

• U.S. Tax revenue: $2,170,000,000,000
• Fed budget: $3,820,000,000,000
• New debt: $ 1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cut: $ 38,500,000,000

Now let’s remove 8 zeros and pretend it’s a household budget.

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385

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Comments

( 4 comments — Leave a comment )
synaptikchaos
Oct. 18th, 2011 04:03 am (UTC)
But I thought spending beyond your means was the American dream!
ozma914
Oct. 18th, 2011 08:04 am (UTC)
More like a nightmare ...
AusMMT
Oct. 19th, 2011 04:07 am (UTC)
Modern Money
I thought you might like to read this:

http://hir.harvard.edu/debt-deficits-and-modern-monetary-theory

and this:

http://pragcap.com/resources/understanding-modern-monetary-system

Kind Regards,
ozma914
Oct. 19th, 2011 05:41 am (UTC)
Re: Modern Money
Very interesting! It doesn't change my basic point, which is that the US government is too bloated and out of control and is headed toward a cliff made of its own debt, but it was a fascinating read.
( 4 comments — Leave a comment )

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