Suppose you needed to buy an expensive item, however you didnt create the extra silver to make the purchase, so you borrowed the gold. When you are paying(a) out more than youre taking in, this is whats cognize as a bud make believe shortfall. Since you borrowed the money, this puts you in debt, or enunciate of owing money, to the loaner. On top of the debt you have interest, or the lean charged for letting you borrow the money. Simple right? lets keep going. Say you needed more money, so you borrowed more. Youre still not bringing in all more money, however youre putting more money out, in other words this means your budget deficit is rising. Not only does this increase your debt owed, but the interest too rises. The higher the budget deficit, the more the debt grows. At some doom the interest payment on the debt is bigger than all of the items in your budget. At that point the only thing you can do is pay the interest, and you wont have any money left for anything else. By this time you are approaching bankruptcy, or the introduce of being legally insolvent. What would happen if we applied this scenario to the land? Amazingly enough, the government goes through this situation every day, and it continues to get worse.
The national deficit is now approaching 6 one thousand million dollars (For an exact figure check out the Treasury sections web site, http://www.ustreas.gov, where the figure is updated daily). How can this be, you whitethorn ask? Right now Federal spending is great than revenues, thus placing the nation in a continual state of debt. At this point the United States Treasury Department has worn-out(a) over $360 billion on interest payments alone in 2001. Yes, that is our tax dollars. Lets put...
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