Is the United States of America heading into Bankruptcy?
Bill and Betty are having some financial difficulties. Here are the numbers: They have a house with a $1.1 million dollar mortgage. They have $329,545 in credit-card debt. Bill is disabled and they are living on Betty's income (net pay after all taxes is $50,636). They borrowed $36,409 from friends this year to help make ends meet. They are paying the friends 1.35% interest. Will this couple have to file for Bankruptcy? How long can they delay the inevitable? Sooner or later, the numbers will catch up to them, and they will be in some serious trouble. Bill and Betty's debt ratios reflect the same financial mess our government is in. Income: This is how much the Government takes in via taxes, etc. 2011 income is projected at 2.228 trillion dollars. Budget: This is how much the Government proposes to spend and has no relation to actual income. Since the Government always lives beyond its means and spends way more than it takes in, it has to borrow the difference, which is called the deficit. 2011 budget is 3.83 trillion dollars. Most people, including Obama, mix these two up: Deficit: How much they will overspend just in THIS year's budget? 3.83 trillion budget minus 2.228 trillion income = 1.6 trillions dollars, or 42% of what we are spending is beyond our means. Put another way, we are spending 72% more money than we are taking in. National Debt: The accumulated debt from all the years of deficit spending. This is currently 14.3 trillion dollars. Is the United States of America heading into bankruptcy? What is the truth here? If this post is deleted, it just reflects how powerful individuals just want to mask the truth, and continue to live in a sense of false hope for the future.
Government - 6 Answers
Random Answers, Critics, Comments, Opinions :
1 :
hope not
2 :
I believe we're pretty much already there, except for the judge requiring the assets to be sold off.
3 :
Its seems like they are ben I was thinkin the same im guessin soon they will hope not because what will the world end up being! This is an intellegant question actually
4 :
Yes, we are already bankrupt. In fact, as you pointed out we have a deficit and continue to spend money that we don't have. We're digging further and further into this whole that is this country's future and if we don't do something, future generations will need all that "hope" they can get.
5 :
Yes we need to cut about $1.7 to $2 trillion from the budget.
6 :
Bill and Betty must be smooth talkers to get into THAT much credit card debt:) The U.S. will NEVER go into bankruptcy as such - well not in the next 20 years at least. This is not a U.S. but a world economy question - right now the U.S. fuels the world economy in many ways. Once China unlinks the Yuan from the $ and starts to grow in a stable (as opposed to the erratic spikes in GDP growth that we see) and mature way it WILL take over as the world financial super power - this is not IF but when. Once this happens and the U.S. starts to take a less predominant role in the world economy it IS then possible that they could go into bankruptcy - it's very likely that China would then bail the US out - similar to the EU bailing out places such as Portugal and Ireland. But - in the short term - the US will NEVER be allowed to go into bankruptcy as this would create a MASSIVE depression around the world, the likes of which we have not seen before.
