The US Problem Explained!

Most people find millions, billions and trillions difficult to understand.  Politicans are no exception.

The figures shown in ‘The US Problem Explained!’ reduced to a pretend household size, are alarming.  The conversion is of course arbitrary and very broad-brush.  Nevertheless the scaled-down figures give a much more understandable idea of the problems facing the US.

The US Problem Explained!

Here is why S&P downgraded the US credit rating.

• US Tax revenue: $2,170,000,000,000
• Fed 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

Now let’s remove 8 zeros and pretend it’s a household budget

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on the credit card: $142,710
• Total budget cuts: $385

Now that you see these figures, I am sure you will understand why I prefer gold to US dollars.  If you feel you have missed the boat on the ten year bull market in gold, you should read ‘A Golden Mulligan‘ which I have just added under Articles.

Jim Slater