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Will Obama Budget Cause More Bankruptcy? 3.7 Trillion Budget Proposal

By Joseph McDaniel, Esq.

Does anybody else have a little trouble wrapping their heads around a number like 3.7 Trillion?

Now, I know that inflation has something to do with that number.

Here's a link to a graph that sets out deficit numbers over a period of time.

Here's a link to a pie chart that shows the categories of spending in 2010.  It's interesting. Most of the spending (about 75%) is in just five categories.

Probably the most interesting chart is one that shows income and expenditures; take a look at it.

It looks as though, if you were an ordinary person, and you spent that much more than you took in every year, fairly soon you'd need a bankruptcy attorney.

I don't know how long a government can keep spending money it doesn't have coming in without raising taxes or just printing gigantic sums of money.

But if a government just prints money, the money eventually starts to resemble the bills in Zimbabwe, where you get change in 100 Trillion Dollar Bills.

Now, if the United States keeps printing money at the present feverish pace, my guess is that money will become as worthless as Zimbabwe (insanity is doing the same thing again and again, and hoping for a different result, right?).

On the other other hand, if we print enough money, that solves the problem with social security once and for all; if you print enough dough, you can hand out as much as you want. Mind you, the social security recipient won't love you, because they can add all of their checks together for a year, and it still won't buy 'em a cup of Starbucks Coffee. Maybe Jack in the Box Coffee, which is surprisingly good.

So the budgeting process is more interesting this year than in prior years.

Now, some people have strong opinions about this stuff; I do not.

I'm just looking forward to my collectors edition 100 Trillion U.S. Dollars Set from the Franklin Mint(tm)!

Full post as published by Arizona Bankruptcy Attorney Blog on February 14, 2011 (boomark / email).