Uh Oh. The Chickens are Coming Home

 Folks, We've got a problem.  

Analogy Begins

If the US Federal budget was scaled to a family size $80K budget, here are the numbers.

1. Income ~ $80K

2. Expenses ~ $110K

Therefore $30K ain't in the checking account and goes onto the credit card.  It's like having a family member who can charge anything without the responsibility of paying for that.  IRL this is Congress who can buy a trillion dollar toilet seat without worrying about where the money comes from. This has been going on since the 1930's. 

SO.......

3. Current Credit Card Debt ~ $500,000 (yep more that half a mil on the credit card)

4. The interest payment on that debt is ~ $10,000 (13% of the budget)

Brief Analogy Intermission****************************

This will destroy the United States if allowed to continue. My grandson Bear who was born last year owed $82,000 immediately after taking his first breath. And who does he owe it to?? Well.....me for one.  I bought about 1000 in Treasury Bills last year. Who else? Well...me for one. Retirement funds are heavy investors.  Who else?  Top Five Countries are: Japan, China, the United Kingdom, Luxembourg, and Canada. 

Luxembourg??

HOWEVER:

Although this is an existential threat to the US, it may not be our biggest problem. 

Analogy continues.*******************************

The Head-of-Household decides the open a brokerage account/gambling account(aka Sovereign Wealth Fund) to allow speculation without family discussions.  And where, pray tell, is the money coming from??  Monetized Assets!! In our analogy, he/she is taking out a second mortgage on the house.  (house is an asset, second mortgage is a monetizing).  OK.  The HoH is an expert horse handicapper/stock analyst etc. But are they??  

IF YOU ARE HALF A MILLION DOLLARS IN DEBT, YOU DON'T

MORTGAGE THE HOUSE AND SPECULATE/GAMBLE!!! 

We're going to hear about Norway etc who have Sovereign Wealth Funds.  But they are not that deep in debt. The phrase "spend like a drunken sailor" according to a former drunken sailor (me) applies here bigtime.

If you want a real life example of all this, go to any casino

and watch people lose the rent money.