Exploring the real debt of Americans. by Guy Lyons
(libertarian)
Saturday, January 5, 2008
According to USA Today,(1), 221 days from the day this article was published, the reality for the American Taxpayer is this -
"Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined."
I'm not sure what the increase of these trillions in liabilities are from 2007, but I imagine that it has a gravity of which we wish we could ignore along with all of the other problems America seems to have.
But let's think positive!
Let's use the numbers from several months ago to look at the financial circumstance more closely. Mind you that the numbers mentioned above would have to be paid immediately and do not take into count future expenditures
"This hidden debt is the amount taxpayers would have to pay immediately to cover government's financial obligations. Like a mortgage, it will cost more to repay the debt over time. Every U.S. household would have to pay about $31,000 a year to do so in 75 years."(1)
Those 75 years are ignoring the average personal debts of an American citizen. So total debt we could probably assume to be about 20% added to the total debt of an American if those debt numbers stay true.
In 2006, about 60%, roughly, of American households earned $64,999 or less,(2). There may be some possible error with the percent because I pushed the buttons in my own calculator and there was some extra math I didn't feel like completing, but the percentile was actually higher so this number is benefit of the doubt.
This means almost two thirds of all Americans will have to pay half or MORE of their income to pay off this debt over a period of 75 years.
This is also excluding inflation, which judging by comparison the relationship of the dollar to other currencies, the dollar's inflation had been roughly 10% in 2006 and 15% in 2007, (3). That's not accounting for the inflation of years before 2006.
I'm no economics major, and these are just some simple numbers that I found. And they are absolutely INSANE.
Wha, wha, wha?
Everyone can agree that it will probably only get worse unless something is done fast. Some people higher up apparently have already tried fixing and still are fixing the problem.
"The fact that Saddam Hussein demanded Euros for oil in an attempt to undermine the U.S. dollar is believed by many to be one of the ulterior motives for our invasion and occupation of Iraq. Similarly, the Iranian oil burse now about to open may be seen as a threat to those who depend on maintaining the current monetary system with the dollar as the world’s reserve currency." (4)
Ya, ya, I know Ron Paul said that, and yes I do love Ron Paul, but this is information I never hear about on the news. Going to war because some one is abandoning the dollar?
And who else is considering abandoning the dollar? Well Indian tourist sites just did,(5), and so might some countries the media paints as threats to our national security, Saudi Arabia, Iran, Russia, South Korea, Venezuela, Sudan, and China.
"Countries are growing weary of losing money with the failing dollar. Many of them want to protect their financial interests, and a number of them want to end the US oversight that comes with using the dollar. Although it’s not clear how many of these countries will actually follow through on an abandonment of the dollar, it is clear that its status as a world currency is in trouble.
Obviously, an abandonment of the dollar is bad news for the currency. Simply put, as demand lessens, its value drops. Additionally, the revenue generated from the use of the dollar will be sorely missed if it’s lost. The dollar’s status as a cheaply-produced US export is a vital part of our economy. Losing this status could rock the financial lives of both Americans and the worldwide economy."(6)
My Money! No TOUCH!
If countries (mostly oil countries) from around the world are concerned about the failure of the dollar to such an extent that they are willing to completely change their reserves to another currency, shouldn't Americans (or furthermore presidential candidates) be talking about the failing dollar, a dollar that has seriously been damaged? Should we consider moving our savings to another currency if others are?
We are in so much debt that it will take a lifetime to pay it off. Our dollar is on the ropes. Other countries are scared for their standard of living, and we growl at them shaking a dagger saying, "No! Bad countries that we are dependent on for oil and manufacturing!" And those that do switch over, they get 'shanked'. Just look at Iraq.
But let's look at the brightside, some one is going to have to address the 56 trillion dollar plus question sometime, let's just hope it's not too late.
The views expressed
in this article are those of Guy Lyons only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Guy Lyons is solely responsible for the contents
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
Thanks a lot George, appreciate it. I'm just writing to get stuff down on paper, not necessarily press (I'm just in high school after all, not a job or anything and don't have enough time), but if you want to go ahead and put this article up on websites, please feel free to do it!
