Tuesday, March 30, 2010

My house, paid for. Or, is it?

Every year that passes brings good news.  Each year my wife and I receive updates on how much we have left to pay for our house.  Each year the number shrinks.  Within a few years, our house will be paid off.  That will be a wonderful day.

The only problem is, that I have another house payment.  Every year it keeps on growing.  In fact, it recently has been growing faster than my mortgage has shrunk.  It grew $16,000 in the last year alone.

This other 'house payment' is our national debt.  This is how much money the federal government owes.  Broken down, each household in this country owes over $72,000.  If projections are correct (and they usually underestimate), in ten years, each household will owe $170,000.  If you think that the government, not you, owns this debt, think again.  The only way the government can pay back its debt is by taking money from the taxpayers.  Either that or they will deflate the currency to pay off the debt. Or both. So, if you were planning on saving up a million dollars for your retirement, you'd better make it two million. Or four.

Over the course of the rest of my life, I will be paying off this debt through taxes.  OK, really I won't come close to paying it off.  My kids and grandkids will be paying the largest burden of this debt off.  What a nice inheritance to leave them!

Oh, and the really bad news is that these figures only include what the government owes right now.  It doesn't include all the 'unfunded liabilities' such as Social Security and Medicare.  That amount is much, much bigger.

A pox on the houses of Bush, Obama, and the fiscally irresponsible members of congress who have done this to us, including all the previous politicians from FDR onward who created these huge ponzi-scheme entitlements that will lead us to financial ruin.

For you visually-stimulated folks out there, here's a deficit chart that will (or should) make you twitch:

1 comment:

Malinda said...

That's depressing! I'm not reading your blog anymore. :)