Neck Deep in Debt

Back by popular demand, because where else will you hear this, its time to present the annual debt statistics for the United States of America.

Warning: Not to be read an hour before or after a meal. Do not attempt to swim or use heavy machinery after reading. If you are standing sit down, if you are sitting lay down, and if you are lying down then I'm sorry.

Now that I have taken care of all the legal stuff here are the numbers:

• Last year's (2004) total debt was $40.1 Trillion (that’s trillion with a T).
• This is 9 times higher than the $4.6 Trillion debt in 1957 (both measured in inflation-adjusted 2004 dollars).
• The debt comes out to $136,479 per every man, women and child in the US (up $7,900 over last year's $128,560); this compares to $27,084 in 1957 (both measured in inflation-adjusted 2004 dollars).
• Last year's total debt increased $3 trillion (up 8.2%). Federal government debt (incl. added debt owed trust funds) increased $595 billion (8.5%), household debt increased $1.03 Trillion (up 11.2%), business debt increased $421 billion (6%), state & local government debt increased $116 billion (up 7.4%), domestic financial sector debt increased $714 billion (7.3%), and other foreign debt was up 10%.

The majority of that debt is not the governments like you are lead to believe by the media, but is household and business debt. So, you might be asking who is to blame. Well, it’s you and every other American citizen that is currently spending more then they take in.

Maybe even worse news is that somebody has to finance this debt. Unfortunately for us that somebody is the Peoples Republic of China. As the saying goes, and now you know the rest of the story.