America is going broke. Congress is worried about getting re-elected. Do you need to know more?
USA Today goes on to report that the total of America’s debts and unfunded obligations – which the newspaper computes following generally accepted accounting principles – increased by $5.3 trillion last year and now comes to $534,000 per household.
Okay, so let’s do the math. The average household has about $45,000 in income…and about $30,000 in ‘disposable,’ after-tax income. If the $534,000 were looked at as an additional mortgage, at say 5%, it would cost about $2,200 a month…or about $26,000 per year.
So, let’s not bother with any more math. The feds have loaded the average household with so much debt that there is no way it can keep up. It would require almost all its disposable cash to do so – leaving almost nothing for food, transportation, housing, and everything else.
In short…forget it. This debt is not going to be paid.
Well, then, what will happen to it? Easy answer: it will disappear. Retirees will not get what they hope for. Bondholders won’t earn the kind of returns they hope for either.
That’s just the way it is.
Read more: No Saying “No” to the American Middle Class