Brainfade Posted August 9, 2011 Posted August 9, 2011 Like a moth to a flame, I came back to this thread But, I couldn't pass on posting this. I can't take credit for it ... someone sent it via e-mail: The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms. Let's put the 2011 federal budget into perspective:* U.S. income: $2,170,000,000,000 - *Federal budget: $3,820,000,000,000 * - *New debt: $ 1,650,000,000,000 * - *National debt: $14,271,000,000,000 * - *Recent budget cut: $ 38,500,000,000 (about 1 percent of the budget) * ** *It helps to think about these numbers in terms that we can relate to. Therefore, let's remove eight zeros from these numbers **and pretend this is the household budget for the fictitious Jones family:* - *Total annual income for the Jones family: $21,700 * - *Amount of money the Jones family spent: $38,200 * - *Amount of new debt added to the credit card: $16,500 * - *Outstanding balance on the credit card: $142,710 * - *Amount cut from the budget: $385 * The downgrade-on-default threat was bogus. The downgrade was based on the refusal to tackle the debt. Well-deserved. In this context, all talk of budget surpluses/deficits is smoke-and-mirrors. The elephant in the room is the debt.
Brainfade Posted August 9, 2011 Posted August 9, 2011 @cricaddict ' date=' I do support few libertarian ideas, not the whole enchillada. Don't agree with Ron Paul on so of the regaulartory issues , Need to have proper oversight . I do support health care bill because [b']what we have now is a sham. Only gonna get worse :-(. Hope you're doing well.
Ram Posted August 9, 2011 Posted August 9, 2011 But, I couldn't pass on posting this. I can't take credit for it ... someone sent it via e-mail: The U.S. Congress sets a federal budget every year in the trillions of dollars. Few people know how much money that is so we created a breakdown of federal spending in simple terms. Let's put the 2011 federal budget into perspective:* U.S. income: $2,170,000,000,000 - *Federal budget: $3,820,000,000,000 * - *New debt: $ 1,650,000,000,000 * - *National debt: $14,271,000,000,000 * - *Recent budget cut: $ 38,500,000,000 (about 1 percent of the budget) * ** *It helps to think about these numbers in terms that we can relate to. Therefore, let's remove eight zeros from these numbers **and pretend this is the household budget for the fictitious Jones family:* - *Total annual income for the Jones family: $21,700 * - *Amount of money the Jones family spent: $38,200 * - *Amount of new debt added to the credit card: $16,500 * - *Outstanding balance on the credit card: $142,710 * - *Amount cut from the budget: $385 * Haha, good job CA. Even though you sized down the numbers, it put things in perspective in a better manner. Can you imagine how stupid the head of a household will look, if he or she proposed a spending cut of $385 for this year, when theyÃÓe nearly $1,50,000 in debt?
Ram Posted August 9, 2011 Posted August 9, 2011 Hey MM' date=' Been very busy , no time to post much , but do browse this site for my cricketing news. Still feel intellecual capital is overrated. Need to have more brick and mortar companies. Btw, did u move to SAP ?[/quote'] I am in banking KR, a more natural home to me. :--D But I fundamentally disagree with the notion that you need to make stuff to have a trade balance with other countries. Tehcnology is a great leveler!
punjabi_khota Posted August 9, 2011 Posted August 9, 2011 I don't think those numbers look right. IIRC the budget cut ~ 2 trillion in 10 years=> 200 billion per year (more or less). Thats 6 times what you have in the post (38 billion).
Brainfade Posted August 9, 2011 Posted August 9, 2011 I don't think those numbers look right. IIRC the budget cut ~ 2 trillion in 10 years=> 200 billion per year (more or less). Thats 6 times what you have in the post (38 billion). Guaranteed spending cuts for this year = 38 b. The rest may be phased in later. Worse still, the CBO estimates that the real savings = only $352 million. Which, in the illustration, amounts to what ... $3.5. Gotta love it.
punjabi_khota Posted August 9, 2011 Posted August 9, 2011 Guaranteed spending cuts for this year = 38 b. The rest may be phased in later. Just for this year, yes. But overall, at least 1.2 trillion is guaranteed since the 'super committee' has to match that number or they come into effect automatically.
Brainfade Posted August 9, 2011 Posted August 9, 2011 Just for this year' date=' yes. But overall, at least 1.2 trillion is guaranteed since the 'super committee' has to match that number or they come into effect automatically.[/quote'] Will believe it when I see it.
Brainfade Posted August 9, 2011 Posted August 9, 2011 Cricaddict' date=' are you a Tea Party supporter?[/quote'] Ron Paul Zindabad! If there was an electable Tea Party member that I would vote for, it would be Marco Rubio.
jhakati Posted August 9, 2011 Posted August 9, 2011 Cricaddict' date=' are you a Tea Party supporter?[/quote'] :hysterical:
anotherhawkeye Posted August 9, 2011 Posted August 9, 2011 KR is spot on. If you want to look at the role of manufacturing, look no further than Germany & UK. The former has lost 2 great wars, been through hyperinflation and has taken on an ailing, communist ravaged state and turned it into an economic miracle. Its strength lies in manufacturing, it wears the crown of the biggest exporter nation lightly. And UK? Need I say more? A pale imitation of the US model. What great strengths have been squandered by the shortsightedness of decision makers and fecklessness of the client state! Good points. US needs a new technology to come out of this hole. They need a disruptive technology like internet again. Till then its going to be more of the same.
Rajiv Posted August 10, 2011 Posted August 10, 2011 ..but doesnt small business do OK? you are more than likely to have job security while working at a convenient store with running income 3A_Fdo1V5E0
Clarke Posted August 10, 2011 Posted August 10, 2011 Good points. US needs a new technology to come out of this hole. They need a disruptive technology like internet again. Till then its going to be more of the same. I have heard that argument and have my doubts on it. We assume that the job creation will be across the board, an outdated concept with the current economic/political environment. The fact of the matter is that China will end up manufacturing the new innovation that comes out next. The most common example is a comparison between Apple & Foxconn, who work together to produce the iPads and iwhatevers, are similar in terms of revenues ($70 billion or so). However, Apple employs 50k people while Foxconn employs a million. This gets worse when one realizes the aggressive manner in which China pursues its ambitions in high tech manufacturing. They are already the leaders in mining of precious metals and do not believe in what's known as copyright infringements. Who could have thought a decade back that the Chinese would be making the fastest trains in the world ?
akshayxyz Posted August 10, 2011 Posted August 10, 2011 Dummies' guide to the US current situation. [ame= Sam - YouTube[/ame]
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