As I was browsing Fezbook today, a buddy had shared a link to the US Debt Clock. No, nothing on here is new to be but it might be to some of you so I thought I would share it and point out some of the highlights.
The US National Debt
The US federal government’s debt, as of the time of this snapshot, was 19.2 trillion dollars, that’s trillion with a “T.” When you break that down each US citizen is responsible for $59,528 dollars of federal debt. It’s even worse when you divide that up between actual US taxpayers. That number is $160,893 for each of us who pay taxes. The government’s debt is increasing by approximately another half a trillion dollars per year.
The US National Debt vs. Federal Revenues
So what, the government brings in tons of money, right? Total federal government revenues are around 3.3 trillion dollars per year. If the federal government could somehow find a way to not spend another dime it would take almost six years to pay off the current debt. It has already grown over half a trillion dollars so far this year and will likely reach 5.8 trillion dollars by the end of the fiscal year.
The interest on the current national debt is around 2.4 trillion dollars so about two thirds of our tax dollars go towards just paying the interest on the loans.
The US National Debt vs. The Economy
The entire Gross Domestic Product (GDP), the total of all goods and services produced, is 18.3 trillion dollars. That means the government’s debt exceeds the size of the entire US economy by about 5.3%.
The Bottom Line
It doesn’t really matter which party is in power, those in Washington love nothing more than to spend YOUR hard earned money, passing it out to anyone who can help get them get re-elected or who can line their pockets.
It also means that unless there major cuts to federal pending or dramatic growth in the economy our nation will face a debt crisis similar to those faced by countries like Cypress, Greece, Portugal, and Argentina. For insight into what it is like to live in a nation facing such an economic crises check out The Modern Survival Manual: Surviving the Economic Collapse by Fernando “Ferfal” Aguirre. It is an eye opener to be sure.