Debt made simple

So I saw Rick Santelli on CNBC, and he took his 'easy method' of understanding the US debt by looking at it as a household budget. Yes, the Fed Gov't is not a household (it can do things like print $$ and void debt, but both of those would devalue our currency, and we'd be most likely in a worse spot of bother.)

So, here are the numbers as of Jan 7th, 2013--(in all their trillionny glory)

US Tax Revenue--       2,459,000,000,000
US Fed Budget--         3,540,000,000,000
New Debt this year--   1,081,000,000,000
Planned cuts (annual)--    38,500,000,000

So, let's just do as Rick did, and simply chop off the last 8 zeroes, and we'll have a variation on that we can use as a 'household' budget.

Net Income (Post-taxes, etc...) --   24,590
Annual spending/Budget--             35,400
New Debt this Year--                     10,810
Credit Card Debt (carried over)-- 164,330
2013 'cuts'* --                                       385

Does anyone see what the problem with this house is? Is it just me?
btw, the * in 'cuts' is because most of those cuts never seem to happen. They are actually
reductions in rates of increase. For instance, instead of the Department of Energy getting a 4% budget increase, they get a 3.5% budget increase. This is from Baseline Budgeting 101.

According to the latest tax data, all income from taxpayers making more than about $66,000 adjusted gross income came to $5,100,000,000,000. In the above household scenario, that would be 'boosting' our wage earner's income to $51,000. Ok, we could beat our budget and put almost $15K against our credit card debt. Excellent.

And, we can add all corporate income in the US. That came to $1,600,000,000,000, or another $16,000 in household budget. So we could put nearly $30K against the credit card debt.

That would mean... I cannot stress this enough... the Fed Gov't would have to confiscate [strong language alert] Every fucking dollar made by everyone making $66K or more, plus every single penny of corporate income.

...and... we're not even close to 'paying off' our credit card debt. So after completely destroying the economy in this example, by confiscating every penny anyone made over $66K, plus all corporate income (not profits, income,) we would still be broker than broke.

Here is the elephant (actually, it is a whale, and a big one at that) in the room that seems to be left behind whilst our Congresscritters fiddle away and Rome burns--

Unfunded liabilities (Medicare, SocSec) total 81,300,000,000,000. That means we for all practical purposes in our homeowner example, we owe the mob $813,000.

Those unfunded liabilities are not in the Federal Budget because it would put the GLOBE into bankruptcy. We have more unfunded liabilities in Medicare ($42.8T and climbing) than money has ever existed in the history of the world in all of time all put together. Social Security ($20.5T) is just half that. Piece of cake!

No wonder China is drawing down buying our debt, we're a BAD DEBT RISK. (We were downgraded based on our projected abilities to pay our debts.)

If we had a proper S&P credit rating (like your FICO,) it would be NEGATIVE.

Just a little news to lighten everyone's day.

Cheers!!

Scott