brucester1959

What is our national deficit?

In Politics, The deficit on February 2, 2010 at 1:03 am

The fiscal budget for 2011, is out from the Whitehouse. The numbers are staggering. If you know what the deficit is, then you are ahead of the game. Our budget is a very complicated thing. However if you think of it in context with the budget that you try to stay on at your house, then you have in essence broken it down into something that is understandable. This is a short breakdown of the fiscal budget for the year ahead.

“Overall 2011 Spending: $3.834 trillion.

· 2011 Discretionary Spending: $1.415 trillion.

· 2011 Projected Deficit: $1.267 trillion or 8.3 percent of GDP (down from $1.556 trillion or 10% of GDP) GDP, is our gross domestic product or the amount of money that business in this country generates each year.”

The key word here is deficit, “which is the sum of all previously incurred annual federal deficits. Since the deficits are financed by government borrowing, national debt is equal to all government debt outstanding.” Our current national debt is $12.290 trillion. To put it simply, the deficit is the amount owed after all monies taken in are accounted for and our bills are paid. The amount left over; is our deficit.

Our government runs a magical checkbook. If you or I used our checkbook like they do. We would be locked up for a long time for fraud or at the very least; writing really bad checks. Imagine taking an empty checking account and writing a check for $1.267 trillion dollars. How long would it be before the authorities took you off to the slammer?

Our government throws numbers like this around like they are confetti. Never batting an eye at the significance of the size of the number. So let us ask the question; what is a trillion dollars?

“A trillion dollars = $1,000,000,000,000.

That’s 12 zeros to the left of the decimal point. A trillion is a million million dollars.

The U.S. government spends more than the entire Gross Domestic Product (GDP) of Australia, China and Spain combined. If you laid one dollar bills end to end, you could make a chain that stretches from earth to the moon and back again 200 times before you ran out of dollar bills! One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills.”

What does one TRILLION dollars look like? (click this link to see for yourself)

This talk of fiscal responsibility is the most disingenuous load of lies that we have ever encountered as a nation. Our country’s very existence is being challenged by these monumental debts that defy belief. Our leaders keep spending at unparalleled levels and are in no hurry to stop. Like drunks with a key to the liquor store, they spend like there is no tomorrow. What will it take to stop this incredible stupidity?

The healthcare bill laying on the table in front of our congress is inches away from passing. Do not doubt that they will attempt to pass this thing.

When you spend like this, one thing is inevitable. Someone is going to have to pay the bill. Who will it be? You or me?

*A footnote to this story, the finance dept. today announced that the government will borrow $395 billion to put towards the deficit of this year. Crazy…hunh?

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