A vote will happen in this weekend about the debt deal. Let's make no mistake about the debt deal is going to screw the average taxpayer and won't even pretend give my kids the courtesy of a kiss before screwing them.
In exchange for a trillion dollar increase in the debt ceiling we will have an unenforceable promise to cut spending by a similar amount over the next ten years.
But what kind of debt are we running? Well as Victor Davis Hanson points out out government is borrowing about $4 billion a day. Yes, you read that right--$4 billion dollars a day. At 365 days in a year, we are talking $1.460 trillion a year. That is what this country is borrowing every year. President Obama proposed a $3.7 trillion dollar budget for 2012. At the current rate of borrowing, the President's budget is supported by a 4o percent borrowing ratio.
But those are some pretty big numbers, hard to wrap your head around. So let me make it a little more understand able.
Let's say your household budget is $100,000 and you are borrowing at that same 40% ratio. That means you are borrowing $40,000 per year. Your income is just $60,000 per year. That means in two years, your debt will be 25% more than your income. In three years, your debt would be equal to your income. Clearly, such a household budget is unsustainable.
But how does the government keep going without problems from its creditors. Simple, the governmnet can do something you can't--print money. Oh, and they can raise their own credit limit. Try calling your credit card company and saying--"gee Visa company....I like living the way I do, so I know I owe you $10,000, but i am going to increase my debt limit with you to $20,000 and not pay what I currently owe."
Sounds ludicrous right, but that is exactly what Congress has been doing and no one is calling them on it.
Well, I am now. It is time to stop kicking the can down the road. We cannot borrow 40% of our budget anymore. Give you representatives a call--put their feet to the fire.