GOOD MORNING WORLD
The following has been making the rounds on facebook. I found it at: http://bitsandpieces.us/2012/12/27/57231/
“Fiscal Cliff” put in a much better perspective
Lesson # 1:
U.S. Tax Revenue: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
Recent Budget cuts: 38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budge:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Total budget cuts so far: $385
Got it?…. OK now…
Lesson # 2
Here’s another way of looking at the Debt Ceiling:
Let’s say you come home from work and find there has been a sewer backup in your neighborhood… and your home has sewage all the way up to your ceilings. What do you think you should do?
Raise the ceiling or remove the sh–?
While not thrilled with the language of the end I have to say this is the clearest example of what we are facing this Dec. 31st. I believe it is an old item as the debt is already higher. Still serves the purpose for understanding. What is the President and the Congress doing about it? To me it looks like nothing. Oh no there was a meeting yesterday!
Cliff # 2 – The Dairy Cliff – I am sure that there are few people out there, unless you have become a news junkie, that are aware that we are about to fall off another cliff due to the price of milk. Unless there is legislation the price of milk will go sky high. The farm bill that has been renewed over and over from 1949 expired in September. Legislators have been trying to add this to any fiscal bill since September and it has not stuck. Here are some other sources.
TV STATION IN DES MOINES IOWA – http://whotv.com/2012/12/27/expensive-milk-new-year-could-bring-new-prices/
The fiscal cliff has been making news for several weeks, but there’s one consequence of going over the cliff that has hardly been mentioned.
The farm bill expired in September and many in congress have been pushing for key provisions to be tacked on to anything that passes before the New Year, one of those provisions in the Dairy Security Act which controls U.S. milk prices.
If the act isn’t renewed the government would be forced to revert back to a milk pricing system based on production costs of 1949, when most milking was done by hand.
Applying that system of pricing to today’s market could push the price of milk to as high as $8 per gallon.
Industry analysts are hopeful lawmakers will pass some kind of provision, but if it doesn’t happen it would take several weeks for the USDA to draw up a new milk purchasing plan to replace the outdated pricing rules and bring pricing back down.
From the Huffington Post…..
Got milk? Your answer may be no come January when milk prices could double.
If the Farm Bill is not renewed by Congress by the end of the year, the price of milk could surpass $6 a gallon, according to CBS News. That would be a big problem for Americans who are already spending on average 10.6 percent of their grocery budget on dairy products.
The Farm Bill currently regulates the price of milk. Without the bill, milk prices are projected to climb around four times higher than what the current bill permits, which could lead to skyrocketing prices in grocery stores across the country.
From the examiner.com
Chris Galen, spokesman for the National Milk Producers Federation, said in October that the nation was facing a “dairy cliff.” The Federation, which represents dairy farmers across the country, issued a warning that if federal farm subsidies were not renewed, that families could face steep price increases as early as January 2013.
“We’ve never been in this position before, so we don’t know what will happen.”– Chris Galen of the National Milk Producers Federation.
Bob Nichols, a dairy farmer in Addison, New York, told the Leader that the bill is essential to keeping dairy prices affordable.
“Without (a new farm bill), milk will be $6 per gallon. We’re at the mercy of things we can’t control.”
Traders were not worried about the milk market futures I read. One was quoted as saying, “We’ll go off the Dairy Cliff, but Congress will fix it, just like they’ll fix the fiscal cliff.” Wonder what he would say today?
Then we have the debt ceiling. I have said it before and I will say it again. If a household budget goes off track you simply cut back and do not spend any more. Why is that so hard to understand?
The sad thing is that few understand or care about it. If you get a refund after you file your taxes what do you care if it is a little less? If they take a few more dollars out of your pay check will you notice? It is such a small amount for many people that it will slip through without pain. If the price of milk goes up will it be important to you? I have 2 boxes of powdered milk already in my basement and depending on the 31st may buy more.
Chip chip chip away. Can you hear it? Freedom chipping away? Solvency is freedom! We are looking more like Greece everyday. Again unless you are a news info junkie that means nothing. The comparison is that Greece gave away money to help the citizenry. When there was no longer any money to give the people, who had been accustomed to being taken care of by the government entitlements, the people revolted. Is that coming to America? Greece is now borrowing more and more as are we. We however have the opportunity to turn the ship around. George Washington said, “To contract new debt is not a way to pay old ones.” Then again who is he?
Of course the problem is all the fault of the Republicans. Sen. Harry Reid called John Boehner a dictator for not letting the House work. It is important to note that the House has actually passed two budget bills regarding the fiscal cliff and sent them to the Senate. Speaker Boehner says they have done their job as these bills start in the House. Is it not now Sen. Harry Reid’s job to bring this up to the Senate who has not passed a budget in over three years? Isn’t it up to the Senate Majority Leader to bring bills to the floor? He has two bills from the House. Where are they? Who is the dictator not scheduling discussion or votes on bills in his possession?
Maybe you do not believe there is a fiscal cliff. Perhaps it is okay with you that taxes go back to the 39% of the Clinton era instead of the current lower rate that Obama signed last year. Perhaps you are one of those who get a refund and are simply glad to have money returned. A slightly smaller paycheck is no big deal. Perhaps it is okay for the cost of milk to be what it actually costs to produce it thus stopping the farm subsidy. Perhaps raising the debt ceiling is really of no consequence to you and your children can deal with it. If so then – let the diving begin…………
…..ONWARD TO MORE MISADVENTURE…