Saturday, July 26, 2008

A Solution To Our Current Economic Crisis


I can think of no better word to describe it.

I find it unfathomable how our current administration can be so irresponsible when it comes to the economy. A six year old can understand the concepts necessary to support a viable fiscal policy.

Simply put, you can't spend money you don't have.

I will try to help you understand the magnitude of the problem. As of June 30, 2008, the United States owed $9,492,006,000,000. That's nearly 10 trillion dollars. To put this into terms that most people can understand, consider that there are 116,011,000 households in this country and each earns an average of $60,528 per year. Put another way, every person in the country owes 135% of their annual salary. So if you make, say, $50,000 per year, your share of the national debt is $67,500.

You owe a lot of money.

Now, in order to explain this further to you, I am going to use a little rudimentary math. If it is beyond your capabilities, I suggest you go back to elementary school and pay attention this time.

This is unsecured debt, much like you would put on a credit card. If you did have it on a credit card, you would be required to pay interest every month on it of 135% X 12 X18% / 12 = 24% of your monthly income. You would also have to make a minimum payment, which is typically 4% of what you owe. This yields 135% X 12 X 4% = 64% of your monthly income. So the total you would have to pay is 24% + 64% = 88% of your monthly income towards paying off your share of the national debt. That doesn't leave much left for you.

Now I may not be a trained credit counselor, but I know common sense and common sense dictates that you should declare bankruptcy.

Every last one of you.

There is only one reasonable conclusion that can be drawn from this.

When I become President, my first official act will be to declare bankruptcy for America.

America has a debt problem. America has borrowed far more than it can afford to pay back. America has proven that it cannot be trusted to handle money responsibly. Our bankruptcy laws exist to deal with these kinds of situations. We should take advantage of them.

Now there will be repercussions from this act. America will no longer be able to borrow money. Considering how irresponsible America has been, this is a good thing.

America needs to learn how to handle money better. Create a budget and stick with it. Create a savings plan and put away a little for a rainy day, like another world war, a pandemic, or Armageddon. Save money by shopping at Costco or thrift stores instead of Lockheed Martin. Try to reestablish a good credit record by using a credit card with a low limit to buy something inexpensive, like Cuba.

America isn't bad, it has just made some bad decisions and needs some help. Should we hold this against America? No! We should give America a fresh start. We shouldn't let it completely off the hook though. America has to shape up. No more stupid choices. America, if you're not sure, ask. Europe has been around awhile. Get some advice there. We have some very nice neighbors. Ask them for help. I'm sure they'll be helpful and supportive. If not, it's good to know now rather than later who your friends are. Maybe next time Canada throws some loud party late at night you won't have to put up with it and can just call the
police. But tell them not to say who called them. Or say you're Greenland. America doesn't want to wake up to eggs or graffiti all over Montana. Nobody wants to clean that up.

Think about it.

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