Naivete

History does love to repeat itself especially when it comes to debt bubbles. At the rate the US government is burning through money, we are likely to breach the debt ceiling limit even before we enter 2013. We’re about $400 billion away from the $16.39 trillion limit but considering we’ve already spent $700+ billion that we don’t have this year, that lofty goal is likely to be met. We’ve talked about the fiscal cliff and how the US dollar has essentially fallen off this position decades ago. Yet the political talk is simply ignoring one of the most important items that will face this nation and we’ve known this scenario was coming for well over a decade. Things appear better than they are because we are spending money we don’t have. Does this sound familiar? In the 2000s you had people buying massive homes they couldn’t afford and leasing cars that cost more than annual salaries of most individuals. That didn’t exactly end well. Yet today, we continue to spend money that is simply not there. To think this will carry no consequences is simply naïve…

http://www.mybudget360.com/long-live-the-debt-ceiling-government-spending-breakdown-government-taxes-revenues-fiscal-cliff/

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