We hear all kinds of confusing messages coming out of MSM and the government right now on the real state of the economy. This index or that is rising slightly or at least decreasing at a slow pace. Unemployment rates have stabilized at about 300,000 net jobs lost per month. Blah.. Blah..Blah.
Here is the real situation and how it really does affect you directly. The National Combined Debt now stands at about $11.7 Trillion dollars. We will be lucky to have $13 Trillion in total GDP this year. To make this personal, every Tom, Dick, and Harry, along with every member of their families, including even baby Jake owes $38,380 right now. And BTW, you each have spent $8,670 so far this year. So the next time you are doing your family budget don’t forget to add your federal burden, based on a family of four, of $188,200. Bet it wasn’t in the budget before hey? How crazy is this?
Well, try this on. The US “unfunded” liabilities (read Medicare, Social Security, and Prescription Drugs) is $58 TRILLION! So, the same Tom, Dick and Harry Clan members are on the hook for $191,941, or using the “family of four” model, $767,764!! Yikes!
OK, let’s re-look the family budget. On average, we have about $100,000 in real debt, most in our mortgage, we got about $25,000 in credit card debt, $188,200 in federal burdens, and we are the hook for $767,764 in unfunded liabilities. That means, on average, every family in America is $1,080,964 in DEBT!! That means what exactly, you so cleverly ask? It means that in the last two years over $12 Trillion has been lost in HOUSEHOLD wealth. That I think we all can understand. Who took our money? It didn’t disappear, it just well uh got re-allocated, that’s it.
To give more perspective to this discussion, in 2009 alone so far, 590,170 families have had their homes foreclosed by the banks. That means banks have created, keeping consistent with our “family of four” model, 2,360,680 homeless people. Is it really starting to sink in now?
No? OK, there have been so far in 2009, 962,727 personal bankruptcies. Using our model, that means an additional 3,850,920 lives that have been affected by this financial debacle. Then you add the 18,000,000 unemployed to these numbers and the 50 million folks without health insurance and we are talking a large segment of our population is in severe financial distress.
But hey, business will turn around and when things start booming, we won’t be talking like this, right? You better sit down for this one. The current Currency and Credit Derivatives (you remember derivatives. the mortgage derivatives cost us $7.6 Trillion) is $645 TRILLION! If 15 % of that puppy goes south, we are looking at $97 Trillion or 13 times the size of the mortgage fiasco. The more research I do, the more I am starting to get pissed. How about you?
We can start ending this madness, I believe, by stopping these political “auctions” and start holding real elections in this country. We need a Public Funded Campaign law right now! Only then can we have competent people run for office and once elected they would faithfully uphold the constitution and represent their electorate.
Here’s Uncle Willie’s thoughts for today’s post: