Sunday, July 24, 2011

The Debt Crisis

1) Standard & Poor's has already told the Treasury that even if the debt ceiling is raised, odds are 50-50 that they will reduce the rating of U.S. Treasury notes from “AAA” to “AA+” within three months. Reason: the current level of federal borrowing at a rate of 40 cents of every dollar of federal spending is unsustainable.

2) Forty-seven percent of American households paid no federal income tax at all in 2009.

3) Entitlement income is now 18% of total personal income in the United States and wages account for 51%.

There is a wonderful, pithy saying that is often wrongly attributed to Benjamin Franklin: “Democracy will last until a majority of the people discover that they can vote themselves largess from the federal treasury at the expense of the minority.”

The federal government is poised on the brink of a financial "death spiral".

What's going to happen when the ex-millionaires begin to show up at homeless shelters and food banks?

4 comments:

Joshkie said...

A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury. – Alexander Tytler

http://www.lpboulder.org/quotes/

I hope they do lower our credit rating, and I hope the Fed. finally raises interest rates, because...

When money becomes to easy to come by; then we loses sight of the value of money, and it becomes worthless. - Me.

Wall Streets and our government have had it to easy for to long. They've become bloated, corrupt and lazy.

Josh

Old NFO said...

Well, they will be in line behind my tired ass, that's for sure... sigh...

Roberta X said...

"What's going to happen when the ex-millionaires begin to show up at homeless shelters and food banks?"

We'll eat them and use their hides for clothing.

Joshkie said...

P.S. Most ex-millionaires won't be ex-millonaires as they have the resources to move out of the country. Taking their business/jobs with them.

They have to be few king idiots to stay at that point.

Josh