Why do investors keep loaning the U.S. money? Our government IS NOT UPSIDE DOWN IN DEBT.
According to a recent report from the Institute for Energy Research (IER) , the U.S. government owns:
- More than 900,000 separate real assets covering more than 3 billion sq. ft.
- Mineral rights, on and offshore, covering 2.515 billion acres of land, more than the total surface land in Canada
- Oil and gas resources on and offshore worth $128 trillion, roughly eight times the national debt of the country
These aren't all of the assets. There are thousands of buildings, 261.5 million ounces of gold and $948 billion in outstanding student loans.
Plenty of assets. The Federal government's balance sheet looks better than FaceBook's - better by a long shot.
So, where is the real debt crisis?
Here at home.
Take the Federal budget of $4 trillion and divide it by the approximate number of households in the U.S. (100 million) just to get the numbers down to a relatively understandable size - so if the government was a family, it would be making about $35,000 a year and spending about $40,000 - that's not so different than an average kind of family - racking up credit card debt to pay for tires, TVs, Christmas presents and sometimes even groceries. Total government debt at those same ratios would be about $180,000. Not so out of line. However, the Federal government has almost unlimited assets and owes most of the debt back to itself and to our children - so that's a different kind of debt than our consumer debt.
Mortgage debt at least has an underlying asset. It's consumer debt that is the real crisis.
Credit card debt in the U.S. is getting close to $1 trillion dollars, and it's one of the most profitable inventions ever derived by banks and other financial institutions. Americans are paying billions and billions of dollars in finance charges every year - more divestment of regular middle class incomes into the pockets of the upper bourgeois.
Nobody seems to be talking about the fact that credit card debt, student loan debt and mortgage debt in the U.S. is almost $17 trillion. That's the real debt crisis and until Americans stop buying credit (yes, credit is a product and it's being SOLD to you) our economy is in danger. Big banking wants to keep you focused on the government debt ceiling and Federal deficits so that you don't take a good hard look at your credit spending.