Raw Data (Budget Deficit)

I don't make jokes. I just watch the government and report the facts.
Will Rogers (1879 - 1935)

I love looking at raw data which comprises unique information. How many people have climbed Mt. Everest every year, what vehicles survive the longest and which survive the shortest, how much wood would a…you get the point. My mind is filled with utterly worthless trivia.

The Germans tried to copy Coca-Cola and came up with the drink Fanta. Venus is the only planet that rotates clockwise. If an Amish man has a beard, he is married. Apples, not caffeine, are more efficient at waking you up in the morning. SCUBA divers cannot pass gas at depths of 33 feet or below. In ancient Greece, children of wealthy families were dipped in olive oil at birth to keep them hairless throughout their lives. Barbie's full name is Barbie Millicent Roberts. The Himalayas cover one-tenth of the Earth's surface.

Did you know that 1945 was the worst year to be a rich man in the U.S.? If you made over $200,000 in 1945 then the government was going to tax 94% of that. Can you believe that?! That same year, the poorest person alive was still taxed 23%. War is awesome! See….. some things are getting better! Something that is surely getting worse is the great and abominable “national debt” of about 11.4 trillion dollars. That number increases by about 3.8 billion every day.

Have you ever had those teachers that one day thought up this great analogy of everyday life which could easily illustrate every principle they are ever supposed to teach in the classroom? A college chemistry professor I had used diet coke as the ultimate example of chemistry. One of my college economics professors would use the same example of how he used to be able to fly from El Paso to Phoenix and L.A. for like $35 roundtrip for every economics point he ever made. Deep down, I loved that man. We never had homework, only exams, and during the class before the exam he would read every single question for the multiple choice test and provide the correct answer. The test was also open book and open notes. In spite of these efforts, about 30% of the class failed every semester. Never underestimate the stupidity of a freshman. I learned nothing from that man. One thing he always would say is that, “we don’t need to worry about the national debt because that is like taking money from one pocket and putting it into the other.” That comment didn’t sit well with me then nor does it today.

Suppose you want to spend more money this month than your income. This situation is called a "budget deficit". So you borrow (use your credit card). The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you don't have enough money to cover your spending (another deficit), you must borrow some more, and you'll still have to pay the interest on the loan. If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment, and you don't have any money left over for anything else. This situation is known as bankruptcy.Each year since 1969, Congress has spent more money than its income. The Treasury Department has to borrow money to meet Congress's appropriations.We pay interest on that huge debt. And now the Treasury is having trouble finding lenders. The U. S. Dollar is being replaced as the international trade standard. Our large national debt is the main reason; and now (2009) Congress has just passed the "Economic Stimulus" bill that will shift us from an "economic crisis" to a debt crisis! If businesses could print their own money and give it away to customers so they could buy the products, many folks would be happy for a while; but the businesses would go bankrupt. Well, that's what our government is currently doing, printing and giving away money. We used to say that in order for the government to give us something they would have to take something away from us; in all actuality, they can just print more.

The New American Dollar

Here is some really really crazy trivia that I can’t even come close to understanding. Since 1984, consumer prices have been less than producer prices. If that is true, how have businesses even been alive since 1984? I don’t know. I don’t know anything. The only fix I can come up with for this economic nightmare is George Clooney. He is the only man that can pull humans out of “The Perfect Storm.” If I were the president or congress, I would be knocking him down with questions right now. You know, I didn’t know George Clooney was even a doctor but I saw this real hospital story where George Clooney saved a guy that had cancer, 14 bullet holes, and AIDS. If George Clooney could save that guy he could surely save our economy.

Well if you are wondering where all of this trivia is going, I would like to refer you to the picture below to help you understand what is about to happen to us.