USA Today: Federal Obligations Equal $546,668 per Household

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machinehead's picture
machinehead
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USA Today: Federal Obligations Equal $546,668 per Household

From a USA Today article:

Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year.

The latest increase raises federal obligations to a record $546,668 per household in 2008. Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.

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

Fedguv Richard Fisher says the real number is $99 trillion. But what's a few dozen trillion between fellow space cadets?

Two essential perspectives were omitted from this otherwise enlightening article. One is that the median household net worth in 2004 was only $93,100 -- less than one-fifth of its obligation to the U.S. fedgov. Do you seriously think that the average family could come up with half a million dollars, even if they tried for the rest of their blighted lives?

The second perspective is to examine the cost of servicing the interest on a $546,668 obligation. At a relatively modest 5 percent, it's going to require $27,333 per family annually to keep this monster from compounding. But the median household income in 2007 was only $50,233. So I repeat my question: do you seriously think that the average household can allocate more than half its gross income to servicing the obligations that the government has incurred on its behalf? If you do, please share the blotter acid.

You don't need a CPA to see that this scenario is broke and can't be fixed. It has been calculated that even 100 percent income tax rates (that is, pure chattel slavery) would not produce sufficient revenue to save this preposterous Ponzi scheme. When tax rates have gone as high as they can without provoking rebellion, inflation is the only additional tax which can extort enough wealth involuntarily during the tertiary phase of the Ponzi scheme.

However, at some point, even hyperinflation will not raise enough revenue. A monopoly counterfeiter faces rapidly diminishing real returns as inflation goes above low double digits. To put it in different terms, the real output of the economy -- goods and services -- simply doesn't equal the escalating value of debt service, which has no upper bound. Thus, hyperinflation is just a brief passage to default.

Metallic currency is specified in the U.S. constitution. The unconstitutional Federal Reserve Act, signed by Woody Wilson on 23 Dec 1913, turned out to be America's death warrant. Then Franklin Deficit Roosevelt ushered in the era of permanent deficits, which create the raw material (debt) that the monster feeds on. But now even you and I can scribble IOUs on lipstick-smudged cocktail napkins and feed them to the Fed. Progress, comrades!

It took this monster 95 years to destroy 95 percent of the dollar's purchasing power. But I'm guessing they'll destroy another 95 percent of what's left in the next twenty. The coming entitlements meltdown is a one-way ticket to hyperstagflation as the ruling rats, jackals and looters turn feral. When it becomes clear that they can't save us, perhaps we can eat them. Hell, they've been cannibalizing our wealth for long enough.

DrKrbyLuv's picture
DrKrbyLuv
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Re: USA Today: Federal Obligations Equal $546,668 per ...

Machinehead said:  You don't need a CPA to see that this scenario is broke and can't be fixed. It has been calculated that even 100 percent income tax rates (that is, pure chattel slavery) would not produce sufficient revenue to save this preposterous Ponzi scheme.

I think you are absolutely correct in saying this has all been a preposterous scheme.  We've put our necks into the yoke of perpetual debt and have agreed to have our children, grandchildren and coming generations do the same.  

If the $546,668 per household is based on four people, then that means that every child born as a US citizen comes into the world owing over $110,000.  What kind of people have we become that we shackle newborn Americans with devastating debt?

We may blame the crooked bankers who have intentionally done this to us but that would only be half right.  We must take half the responsibility in being a greedy and decadent society.  We kill, torture and submit future generations to tyranny and poverty.

And, BTW, we can start fixing this anytime we want but we are too damed dumb to figure out that our entire monetary system is a scam. 

Larry

investorzzo's picture
investorzzo
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Re: USA Today: Federal Obligations Equal $546,668 per ...

Yes, the bankers have us at greed and apathy. Like a rat that keeps going for the cheese until it kills its-self. And still we can't help but look to make a buck in every situation. When I talk to people they look on how to make a buck on the present situation-it's unreal? And when you try and really explain whats going on, they look at you with glassy eyes and say they don't know what I'm talking about or they don't want to know. But they will talk to you for hours about there fishing, golfing, baseball games.........

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