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Fiscal Cliff put in a much better perspective

What is the fiscal cliff

As America approached the Fiscal cliff, perhaps I’m on my own in saying that the amount of money the U.S government have, owe or print is completely confusing. The Fed’s recent budget cut looks more like a phone number than it does a hair cut off its current debt ceiling.  Some of us look at that number ($38,500,000,000) and think that if the U.S can cut spending by that amount then surely things have to start looking better. But – what do we know How does one empathise or resonate with the running of a country

Fiscal Cliff put in a much better perspective:

  • U.S Tax Revenue: $2,170,000,000,000
  • Fed Budget: $3,820,000,000,000
  • New Debt:  $1,650,000,000,000
  • National Debt: $14,271,000,000,000
  • Recent budget cuts: $38,500,000,000

Let’s now remove 8 zeroes and pretend it’s a household budget:

  • Annual Family income: $21,700
  • The money the family spent: $38,200
  • New debt on the credit card: $16,500
  • The outstanding balance on the credit card: $142,710
  • Total budget cuts so far: $38.50

It’s clear that these budgets cuts do little more than confuse us! It’s obvious spending cuts do more harm than good whilst we all know that the inevitability of printing more money shrinks the purchasing power of the annual family income…

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Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

Terry says :

Someone needs to do an update with this new 2.3 Trillion debt that just occurred.

2019-01-06 18:42:37Reply

says :

Mistake: Taking 8 zeros off results in Total budget cuts so far: $385, not $38.50.

2021-09-24 01:31:11Reply

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