I’ll have weightier stuff to write later, but wanted to share something that has been floating around, I saw it on Patterico (and fixed a math error):
US Tax Revenue. $2,170,000,000,000
Federal Budget. $3,820,000,000,000
National Debt. $14,271,000,000,000
Recent budget cuts. $38,500,000,000
Now, let’s remove 8 zeroes from the above, and use it as a household budget
Annual income. $21,700
New credit card debt. $16,500
Family debt. $142,710
Family belt tightening. $385
Solution? Call VISA and ask for increase in credit limit
It’s already clear that this household will get its credit cut off, and that what the creditors will recover won’t be worth much, because it’s fiat debt. That’s not so worrisome; what’s going to hurt is cutting the expenditures by 40%. I can’t imagine that the USG will lay off millions of people, they’ll just keep writing checks, and it will be fun when the vertical asymptote arrives.
Math is unforgiving.