Good Morning Middle America, your King of Simple News is on the air.
U.S. NEWS: Yesterday, July 28, 2008, the Whitehouse announced that our annual budget deficit would exceed $500 Billon and at the same time downgraded the economic outlook through 2009.
Our ceiling for the National Debt is now $10.6 Trillion and government will need it all to get through the next year. In my opinion, it won’t be enough.
When you run a business that began with a mathematically flawed business plan, the day comes that it is impossible to go on. So what does that have to do with the National Debt? Government is nothing more than a big business whose income is derived from fleecing the peons, formerly referred to as the Middle Class citizens.
Let’s look at government with a little Mikeronomics today. The sizeable National Debt of the United States is justified by comparing it to the GDP (Gross Domestic Product). Last count was that our debt was approximately 37% of GDP, which according to the residents at the state mental hospital, is an acceptable level.
Of course, there is the unfunded debt of such things as Medicaid, Medicare, Social Security and other promises, which adds another $59 Trillion and raises the debt level to 61% of our GDP. The vote was split on the acceptability of this figure, with the criminally insane unit approving.
General Motors had the same sort of plan as our federal government, so long as the income for auto sales was somewhat higher than the cost of doing business, no one was sweating the small stuff. Of course, no one was considering the present snafu when auto sales would dip somewhere below the cost of doing business, in fact, $8.6 Billion below the cost of doing business in 2006 alone and still counting.
The problem is that the debt doesn’t go down when business slows up, unless of course, you are a homeowner that is being bailed out by Congress in which the laws of consequences are being reversed; bad behavior is rewarded, good behavior is punished.