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[Varche]

We all keep seeing on Tv how the Americans are heading for the fiscal cliff and need to raise the debt ceiling.

But what does it actually mean.

I'm sure there are many who are not able to absorb the sheer enormity of the problems facing the world when media and governments talk in terms of Trillions of $$$$. Afterall what on earth does a Billion dollars look like let alone a trillion..

So here is an analogy of US revenue and debt changed into 'household figures' that we can hopefully all understand....

* 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

Now lets 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 so far: $38 and 50 cents

Got It


Another word de jour is Debt Ceiling:

Here’s a nice 'simplistic way' of looking at it......

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 remove the sh1t?

[Rods2]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

[cem_devecioglu]

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
                                               ---------------------------------------------------
                                                   RESULT: debit as much as 8 years of income if no money spent!! excluding debit interests.. failure.. 
 
 
must add though, nationalise FED, problem mostly solved..
 

 

[Lizzie_Zoom]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

Agreed!  Varche has explained it in very understandable terms.

I think I heard on the news that the US, just as one example of their problems, need to save $27 billion from their defence budget!!

The Empire is crumbling like all that have gone before!

Not good news for us  and the rest of the western world that's for sure.

[cem_devecioglu]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

Agreed!  Varche has explained it in very understandable terms.

I think I heard on the news that the US, just as one example of their problems, need to save $27 billion from their defence budget!!

The Empire is crumbling like all that have gone before!

Not good news for us  and the rest of the western world that's for sure.

USA will start another war, gun & oil cartels will earn more .. its citizens will die in more debit..

[Lizzie_Zoom]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

Agreed!  Varche has explained it in very understandable terms.

I think I heard on the news that the US, just as one example of their problems, need to save $27 billion from their defence budget!!

The Empire is crumbling like all that have gone before!

Not good news for us  and the rest of the western world that's for sure.

USA will start another war, gun & oil cartels will earn more .. its citizens will die in more debit..

The slow fading of the USA will certainly cause a change in world politics Cem; the dynamics will alter making the world even less safe than now. 

That is why I fully support the need for a high level of defence, independent of the USA and , with a fully (UK) independent nuclear deterrent, and a new launch system. No money for this?  No excuse, we have to find it like we have in history before to keep Britain British.

The UK needs to ready itself for a world regime change which has happened before, but will have many new challengers for the whole of the twenty first century.  In fact the twentieth century may eventually appear to be a walk in the park in comparison. 

[Varche]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

Agreed!  Varche has explained it in very understandable terms.

I think I heard on the news that the US, just as one example of their problems, need to save $27 billion from their defence budget!!

The Empire is crumbling like all that have gone before!

Not good news for us  and the rest of the western world that's for sure.

USA will start another war, gun & oil cartels will earn more .. its citizens will die in more debit..

The slow fading of the USA will certainly cause a change in world politics Cem; the dynamics will alter making the world even less safe than now. 

That is why I fully support the need for a high level of defence, independent of the USA and , with a fully (UK) independent nuclear deterrent, and a new launch system. No money for this?  No excuse, we have to find it like we have in history before to keep Britain British.

The UK needs to ready itself for a world regime change which has happened before, but will have many new challengers for the whole of the twenty first century.  In fact the twentieth century may eventually appear to be a walk in the park in comparison.

Lizzie, just out of interest. Where would you be thinking of basing England/Wales and Northern Ireland's once Scotland gets its independence?

[Lizzie_Zoom]

Well put. 

"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."

For the average citizen in any western country: As long as the TV still works when they switch it on, squelch down onto the  sofa and watch X factor. 

Agreed!  Varche has explained it in very understandable terms.

I think I heard on the news that the US, just as one example of their problems, need to save $27 billion from their defence budget!!

The Empire is crumbling like all that have gone before!

Not good news for us  and the rest of the western world that's for sure.

USA will start another war, gun & oil cartels will earn more .. its citizens will die in more debit..

The slow fading of the USA will certainly cause a change in world politics Cem; the dynamics will alter making the world even less safe than now. 

That is why I fully support the need for a high level of defence, independent of the USA and , with a fully (UK) independent nuclear deterrent, and a new launch system. No money for this?  No excuse, we have to find it like we have in history before to keep Britain British.

The UK needs to ready itself for a world regime change which has happened before, but will have many new challengers for the whole of the twenty first century.  In fact the twentieth century may eventually appear to be a walk in the park in comparison.

Lizzie, just out of interest. Where would you be thinking of basing England/Wales and Northern Ireland's once Scotland gets its independence?

I believe Scotland will vote to stay in the UK.  The Scots know there is security and strength in numbers and being a partner with England and Wales is the only realistic way to go.   If they did leave us all, our nuclear deterrent should be based in England, and would provide employment for those in that area.

[Entwood]

Due to all the arguing, failure to agree, brinkmanship, power plays etc etc there are some really interesting bits of this problem that have not been aired a great deal, as even the American Public in all it's innate stupidity might actually see through some of these power hungry politicians ..

First ... everyone knows the Senate and House of Representatives are controlled by opposing political groups, also, everyone knows that the HoR is effectively run by the Speaker who is opposing the President as hard as he can .... question ...  why ...  answer given to public ... principle .. "that is what my party stands for" .. possible other answer .. not heavily publicised .. on Jan 3rd the post of speaker is up for re-election and he wants to be seen as hard line to keep the job .... he cares more about the speakership than he does the american economy.

Second ...there are actually THREE rules set by politicians to "control" the american economy ...

One ... By law they MUST pay certain "bills" regardless of political affinity .. State wages/pensions/social payments/defence  etc etc

Two ... by law they are ONLY allowed to collect the taxes stipulated..

Three .... to make up the difference they are can borrow UP TO a certain amount .. the "debt ceiling"

The problem is .. and again they don't publicise this ... the figures don't balance ..

The spending is higher than the taxes but by lots more than the amount they are allowed to borrow !!!

Which is why the "Fed" has had to announce some "special accountancy procedures" - fiddling the books ?? - simply to allow the government to operate for the first 2 months of the year ...... if they don't reach an agreement.....

A lot of "nest feathering" going on in Washinton at the moment ..

[Lizzie_Zoom]

A great summing up there Entwood!

Yes, all those politics add up to a State that cannot, or does not want to, resolve it's crucial financial issues.  When an Empire does that it starts to implode, or rot from within.  Unless the politicians can overcome their party politics and act in the true interests of the State then their Empire will start to destroy itself far earlier than even I expected.  The American Century will end

[Varche]

If they did leave us all, our nuclear deterrent should be based in England, and would provide employment for those in that area.

If you are talking about a submarine based detterent then we only have one option and that is in Scotland. maybe it is actually That traitors ultimate bargaining chip. Whatever, it won't have escaped his attention of that we can be sure.

[symes]

America sneezes and rest of world gets a cold !!!!!

[Lizzie_Zoom]

America sneezes and rest of world gets a cold !!!!!

Cold Symes?

I think more like pneumonia this time, which could well prove fatal!

[STMO123]

America sneezes and rest of world gets a cold !!!!!

Are we talking nuclear sneeze or financial sneeze? Two threads at once can be confusing 

[symes]

Nuke-fiscal no matter America always bends us over-if you get my meaning.