The Fiscal Cliff – An Explanation

In case you are not clear about what’s behind all the talk about The Fiscal Cliff , here is an explanation (which I received this morning) which helped me at least understand why it is called a cliff

The Figures

* U.S. Annual Tax revenue: $2,170,000,000,000
* Annual Federal budget: $3,820,000,000,000
* New debt next year: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

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

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $38.50

Got It ??…….OK now,

Here’s another way to look at the Debt Ceiling:

Let’s say, You come home from work and find
there has been a sewer backup in your neighbourhood
and your home has sewage all the way up to your ceilings.

Now what do you think you should do ……

Raise the ceilings, or remove the shit?

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