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There is one basic difference between your debt and government debt. You have
to work to pay off your debt and therefor your spending is constricted to the
payments on your maxed out credit cards, mortgage and auto payments. The
government can print more money to spend, when it has to increase its income it
just takes more of what you earn. You have no one to take from. Unless, of
course, someone decides to be your benefactor. The interest upon the government
debt is in excess of $200 billion per year. The defense budget is in excess of
$200 billion dollars per year. All I hear is cut the defense budget, I don't
hear cut the debt. How can there be surplus, projected or otherwise, if there
is debt? The last I heard the Government had $5+ trillion in debt and a
PROJECTED surplus $1+ trillion. As usual, the government doesn't have it yet,
but they are willing to spend it. Just some thoughts on my part. Have a good
week end. Ira.
kohath wrote:
> I am not an economist, but, it seems to me to be nothing but simple
> mathematics. If I am paying out $0 verses $100 per month, at the end of the
> year I will have $1,200 more. How can it be different for a nation. I
> seriously doubt it is. It is really very simple, if you just sit down and
> think about it. There was a guy on CNBC a couple of weeks ago, and he
> stated the simplest way to get rich is to get out of debt. This is plain
> and simple mathematics. Remember, for each dollar you spend, you have to
> earn at least two. If you are paying out $500 per month on a mortgage, you
> had to earn $1,000 to make that $500 payment. A year or so ago a guy said
> that the newly married couples $20,000 Trans am will have cost them $100,000
> by the time they are 60. This is also simple mathematics that anyone can
> check out that has a financial calculator. Think about it. $500 per month,
> starting at 25 years age, by the time you are 60 that mortgage will have
> cost you 35 X 12 X 500 = $210,000. I would submit that with the interest at
> 8%, the future value would be $1,146,941 by the time the person reached age
> 60. Yes, there is nothing better than debt, for the banks anyway.
>
> Kohath
>
> >
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