Let’s say you make $100,000 a year and buy a house with a $180,000 adjustable rate mortgage. You promise your kids that they can attend expensive colleges and assure your parents that they will enjoy a comfy retirement for life. You agree to support your unemployed brother-in-law, but don’t cut back on a fancy lifestyle that maxes out your credit cards.
Sounds reckless, doesn’t it?
That’s how Washington is managing the US economy. Debt and promises are many times annual income. In fact, each taxpayer’s share of the $59 trillion national debt (including unfunded liabilities) is over half a million dollars.
The big spending politicians in DC find economic experts to sing Hakuna Matata. Special interest groups and people on the receiving end of taxpayer dollars shriek at any mention of slowing down the gravy train. The media fails to sound the alarm.
A rising number of bankrupt states and cities preview what may happen to the US. Republicans won’t raise taxes and Democrats won’t stop spending. Foreign investors may stop buying US notes. Printing money will only cause a future hidden tax - hyper inflation.
It’s frightening to see the strength and prosperity of the US slip away while Washington continues to spend money they don’t have on loaded welfare, wasteful earmarks, benefits to illegal immigrants, expanded health benefits and premature alternative energy investments.
The first rule when you find yourself in a hole is to stop digging.
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