Framing the Dialogue

Debt…Deficit…Doubt…Disaster?

credit-card-drowning2Personal Finances:  My wife and I have amassed some decent credit card debt by spending more money than we had available, or deficit spending.  Since we are blessed with a good credit rating, the banks are always willing to raise our credit limit.  They are just so nice about that.  Rather than take advantage of those nice folks’ offer, we are in the process of reducing that debt through a number of means.  We are going to have to spend less, sell some investments, and restructure some debt, but should have it eliminated within the next three months.  Although it will be hard, but we feel that there is a need to eliminate this debt.  

Government Finances:  The federal government (our elected officials)  have amassed some outrageous national debt by spending more money than it brings in (i.e. our earned money that it takes from us in the form of taxes and fees).  The United States has been blessed with good credit and has always been able to borrow more from the Chinese and others.  Unlike your personal finances, the federal government can raise its own “credit card limit” and spend more money.  The Obama Administration has decided to take advantage of this benefit to “spend our way out of debt.”  Although there is a need to reduce this debt, Washington politicians figure that this debt will be paid BY OUR GRANDCHILDREN!

Some recent events should make you stand up and take notice:

It troubles me deeply when elected officials continually break their oath of office and plunge our nation into more debt to serve their political needs.  Like our household economy, this debt has to be paid back at some point as interest continues to grow.

Using the credit card analogy again, we are raising the credit limit, spending more money, and not even making the minimum payments.

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