Snapshot of US debt and deficit in relation to an annual household budget

US Tax revenue: $2,170,000,000,000
Federal budge: $3,820,000,000,000
New debt: $1,650,000,000,000
National debt: $14,271,000,000,000
Recent budget cuts: $38,5000,000,000 (billions…the above amounts are trillions)

Now remove 8 zeros and pretend we are looking at 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: $38.50

This doesn’t include unfunded liabilities that have already been promised. If the U.S. Government were using GAAP (Generally Accepted Accounting Principles) and had to declare those unfunded liabilities on their books like companies do – then the U.S. debt is more like $60,000,000,000,000 (that is $60 Trillion).

Mountains of Debt: America’s Economic Realities

(Good, easy-to-read overview of our current economic situation)

by Charles Wheelan, Ph.D.

Ben Franklin supposedly said that it’s better to skip supper and go to bed hungry than it is to wake up in debt. Ben would be quite disappointed in us. We Americans didn’t skip dinner; instead, we opted over the past decade to gorge at the buffet and then charge it.

We woke up as the world’s largest debtor — so deeply in debt that our global creditors are getting nervous, and rightfully so.

Here are some economic realities associated with our deepening fiscal hole. Continue reading “Mountains of Debt: America’s Economic Realities”

U.S. Govt owes $63 Trillion in debt

This is for committed obligations that we don’t have the wherewithal to pay for right now.

Each U.S.  household currently has a $550,000 in debt obligations.

http://www.usatoday.com/news/washington/2009-05-28-debt_N.htm

How much is a Trillion dollars? Here’s what $700 Billion looks like.

Want to understand why it’s this much? Watch this: Link