Have you ever viewed the live debt counter for the United States Debt? I am a man that loves numbers, and this has to be the most fabulous site that I’ve ever seen! The dynamic nature of these numbers is fascinating; unfortunately, most of these numbers are red, and ultimately display the debts of all of us individually as well as the debt of the United States nation.
U.S. Debt Load Per Person
As you can see, the national debt has now entered in the 14 trillions! If each taxpayer decided to chip in and pay off the national debt, it would cost each of us $126,642! Unbelievable huh?
U.S. National Debt Ceiling
As interesting as this is, I have become more interested in a closely related topic that has flooded the news – the National Debt Ceiling. Did you know that the government puts a limit on our own borrowing? It is currently set at 14.3 trillion dollars. According to my quick calculations, we’ll hit that ceiling in early 2012 (and that’s assuming the government won’t add any additional debt in their plans).
So, what happens when we hit the ceiling? It’s a simple answer – they’ll simply raise the ceiling. It’s happened time and time again, and is easily compared to an individual’s credit card debt.
Have you had a credit card that you continued to inch toward the maximum? The very moment you began to get worried, the credit company decided to raise your limit since you are such a great customer. You are honored that the credit company holds you in such high regards and you slowly inch passed the old maximum. Once you get close to your new ceiling, another letter comes in the mail and you find that your credit limit has once again been raised! This is exactly what the United States government is doing to themselves. They have great intentions to limit their debts, but as they inch toward the ceiling, they find that they have no choice but to raise it!
What is your take on this? Will the U.S. continue to spiral into further debt, or will one of these debt ceilings actually hold?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.