If you’re looking for inspiration to get out of debt, then you would definitely not want to look to the U.S. government. They’re setting a horrendous example… and then trying to pass it off as “no big deal.”
In my opinion, it’s only a matter of time before the U.S. debt load comes crashing down. But hey — I’m just a citizen. What do I know about economics and finance?
Good question. I’ll answer it in just a second. But first, from the article:
Mr. Obama’s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.
Here’s what I know about economics and finance:
When you’re total consumer debt exceeds your gross annual income, you’re pretty much screwed. To get out of debt, you’ve got to make huge gains in your annual income — which for most people (and governments) is not realistic.
Get the full story here and see if you agree with my conclusions: