Wednesday, July 24, 2013

Is the United States worse off than Detroit?

Detroit went bankrupt owing $19 billion, which breaks down to $27,000 per Detroit resident.  At nearly $17 trillion, every American owes roughly $53,000.  In other words, at $27,000 a city is bankrupt but at $53,000 it's business as usual.  How much longer can this go on?

Sequester was triggered when the legislative an executive branches couldn't come up with a debt reduction solution.  The Dems would not cut social programs and the GOP would not cut defense during a time of war.  Since WWII only seven federal budgets balanced.  Why would ANYONE think Congress and the President could find a way to do it now?  Even with sequestration our debt continues to compound.

In just ten years our federal budget increased $1.6 trillion to $3.8 trillion.  This massive spending increase coupled with a $17 trillion dollar national debt helps explain why the world down graded our debt three times since August of 2011.  With rates on the rise, the cost of servicing our debt will increase and unless we actually balance our budget the United States will go the way of Detroit.