NO GETTING AROUND THIS ONE FACT.
So what are you going to do. You have three choices:
1) Get a second job and earn your way out of the dilemma you created by spending too much;
2) Find some way to decrease your monthly spending - stop buying some discretionary items.
3) Sell some things to create some extra source of income
AND probably all three.
OR
You will have to declare bankruptcy.
Now we take the US government's budget. The INTEREST on the debt is fast approaching what the total income
of the United States is. Once the debt ceiling is raised and the U.S. borrows more money; and once interest rates begin to move up just a little bit, the total interest on the US debt WILL BE MORE THAN ALL THE INCOME THAT THE U.S. TAKES IN. And as inflation kicks in and we print more money to pay for the interest without ever paying down the principle debt, the US Dollar will become worthless. And worse, the U.S. will be forced to de-value its currency. Time will come when you are asked to turn in 10 old green dollars for 1 new tan/green dollars. Instantly everyone will be poorer by a factor of TEN. If you had 10,000 in the bank, you would then only have 1,000. And the prices of food and commodities would be the same or higher.
GET IT PEOPLE !!! WE DO NOT HAVE TO LIKE IT!!! BUT WE EITHER HAVE TO REDUCE THE U.S. SPENDING AND SOME OF THE PEOPLE WITH GET HURT OR WE CONTINUE TO SPEND AND ALL THE PEOPLE WILL GET HURT.
THOSE ARE THE U.S.A.'s ONLY TWO CHOICES. You do not have to like them. The two choices are there and you have to decide how you will go from here.
It's a choice between very bad and disaster. No one will like it. BUT it will be one or the other choice no matter what side of the political spectrum you are on. So my choice is to begin to cut spending and NOT raise the U.S. debt spending limit.
As the debt is slowly and painfully reduced over several years and as the U.S. economy slowly begins to increase and more people are employed and pay more taxes, then and only then, will the U.S. economy and the U.S. dollar get on firm ground.
And that's the way I see it...
Straight Talk with Jay Clifford
