After about seven months, it is time to re-visit the nation’s financial condition. For comparison you can visit my post of April 19, 2012 here.
According to www.usdebtclock.org, as of today the U.S. national debt has risen 3.86% since April 19 to $16.278 trillion or 105.18% of GDP (Gross Domestic Product) of $15.476 trillion. To look at it more personally, you as a U.S. citizen now “own” $51,707 of that debt or if you are a dutiful taxpayer, your share is $141,859. Let’s hope Uncle Sam does not decide to call in his “chips” to settle his accounts. With the fiscally irresponsible (no budget in the previous four years in office) Obama re-elected we can expect yearly trillion-dollar budget deficits as federal spending skyrockets out of control, which will greatly exacerbate the national debt problem.
How does the United States debt to GDP ratio compare with other countries? Let’s take a look.
- China = 11.13%
- Brazil = 21.17%
- Russia = 58.53%
- Canada = 93.99%
- U.S. = 105.18%
- Greece = 235.15%
- Spain = 246.93%
- France = 292.58%
- Britain = 504.72%
- Ireland = 1278.8%
While the U.S. is indeed in big financial trouble, I suppose one could console oneself that we have a long way to go before becoming a Greece or (yikes!) Ireland. But with the U.S. debt at only 105% of GDP that would be like you spending/borrowing $105 for every $100 you earned. That does not sound like much, but if uncontrolled and not reversed it eventually adds up to bankruptcy. Since Obama’s first inauguration, the national debt has soared 54%. The interest alone on the national debt is currently $270 billion and if nothing significantly changes to stop this rising mushroom, the annual interest will top one trillion dollars by 2020 (just 8 years away).
In addition to the debt increase at all levels since April 19, the food stamp rolls have increased by 1.8% or by an estimated 848,845 participants to 47.7 million or 15.1% or the total U.S. population. This is a further indication that the U.S. economy is still in deep trouble. Interestingly, when you divide the government reported “official” unemployed of 12,169,641 + or – by the number of people in the U.S. workforce (143,565,709), you get an unemployment rate of 8.5%; not the reported 8.1% of October. “Actual unemployment” (not reported by the government) is 15.75%. If you take the “official” and “actual” numbers of unemployed and divide them by the number of U.S. taxpayers, the number of unemployed rises to 10.6% and 19.7%, respectively.
Another interesting observation is that the amount of savings per U.S. family dropped a dramatic 23.5% in these seven months, from $6056 to $4626. However, this reduction in savings apparently was not used to substantially pay off personal debt, since personal debt only declined by 0.07%. U.S. families were likely using their meager savings to help stay afloat.
Obama’s proposed tax increases on the wealthiest 1-2% is a pure smoke-screen to pacify his mindless minions who do not have a clue on how economics or the economy works. It has been said that if Obama were to confiscate ALL of the wealth of the top 1-2% it would only keep the government solvent for 6 days. Keep in mind that all the discussion here and elsewhere usually does not factor in the estimated trillions of unfunded dollars that Obamacare will add to government spending; the annual deficit and the national debt.