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JustClean

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I found this some while ago in my inbox:

COMMENT FROM ROSS GREENWOOD (Financial presenter on Australian morning TV show)

In USA today:
Lesson # 1:

Why the U.S. was downgraded:

* 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 cuts: $38,500,000,000

Let's now 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

Got It ?????


OK, now Lesson # 2:

Here's another way to look at the Debt Ceiling:

Let's say, you come home from work and find there has been a sewer
backup in your neighbourhood ... and your home has sewage all the way up to your ceilings. What do you think you should do?

Raise the ceilings, or pump out the (ummmm) "effluent"?
 

Greg Pack

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I believe there is a dramatic change coming to what our government can provide to the public. The question for me is when. The stuff can drag on much longer than you would think. Can they keep the music playing another two years or twenty years- Who knows?

IMO, the bulk of the American people (from either major party)aren't ready to accept the measure of austerity combined with higher taxes to effectively pay the debt off. I went to several tea party events a few years back and everyone was screaming for cuts, as long as you didn't cut THEIR teat off. Some of those older people who wanted to slash and burn the deficit could really change their tune when the discussion came up about the sustainability of medicare and social security.

Even today the Republicans are posting ads about Obama's cuts to medicare and promising to leave medicare intact. IIRC the Ryan budget doesn't balance for a while, over ten years IIRC.

I'm focusing my energies on what I can change: my level of indebtedness. I hope everyone is getting into fixed rate loans. When interest rates rise they will probably rise relatively quickly.
 

rph9168

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It is well known that it would be impossible to balance the budget at this time. The only way it can be done as painlessly as possible is slowly which means over a period of 30 years or more. This rate could be reduced if we made greater strides to become energy independent and increased tax revenues by decreasing the number and amount of entitlement programs and the number of people that pay taxes but as previously mentioned, this is a political conundrum.
 
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