Thread: An American Financial Question

Friends,

I have a question. Please tell me if I am correct in my thinking on this.

Let's say an American family is living month to month or paycheck to paycheck as most are. The American savings rate went negative for the first time every a few years ago, so we can assume that the average American family has little to no savings. Or we could just say their savings are likely to be less than their monthly income.

Ok, so let's say this family of 4 is one of the few remaining nuclear families.

If this family has an outstanding balance on their mortgage of $150,000, and $5,000 in medical bills, and $10,000 in student loans, and about $5,000 in credit card debt, that would mean the family has a negative net worth of negative 170,000 dollars minus whatever their belongings would total up to.

So if you estimated the value of the family's electronics, vehehicles, jewelry, etc....

You could probably say the family had a negative net worth of -160,000.

However, could we not add the average of $80,000 per American in debt we each owe under the Full Faith and Credit of the American government? Since our governmental debts have risen so dramatically in the last two years, and the average America owes 80,000 plus interest on that 13 trillion in debt, would that not add another -320,000 to this family of 4?

Would this not mean that the family I described has a net worth of - 480,000?

Yes or no? The family I described has a net worth of -480,000 which means the people in this American family are much worse off than the illegal aliens with no belongings rushing over our borders each night?

Perhaps the illegals should run back home for their own good?

W

American's just dont get it.... they are not BROKE; they are DIRT BROKE and have been for a while now

The stink hasnt hit the fan big time yet; but America is getting ready to smell the decay shortly

The U.S. Government is living off of Pay Day Loans from China

NAFTA
CAFTA

and all other free trade agreements killed America. What you are seeing is the parasites feeding on a dead carcus

off shoring jobs
out sourcing
Illegal Aliens taking what few jobs are left (Legally according to Obama and Bush)

your screwed America

I pray that I am wrong but I do think you woke up from your deep sleep way to late

Americans are not dirt broke. Dirt broke means you have nothing at all. We were dirt broke decades ago. I wish we were dirt broke. Americans are now indentured. If they are not indentured through using credit just to put food on the table, then they are indentured through our government wasting our money and putting us further into debt. Oh ...please....give me back those days when Americans were simply dirt broke.

Illegal Aliens at least have some where to run back too HOME; I think they are confussed that things are going to get better; they are not; not for a long time.

From everything I am reading we are in year 2 of a 10 plus year depression

If Illegal's were smart (Not saying they are or are not) they would get before it is impossible to get

Americans ~ unless you are very wealthy; you are stuck like Chuck and I hope you are ready for some very bad times: the worst is yet to come

You are right in the sense of being dirt broke; but I was referring to the federal government; we are indeed indentured

Originally Posted by ALIPAC

Friends,

I have a question. Please tell me if I am correct in my thinking on this.

Let's say an American family is living month to month or paycheck to paycheck as most are. The American savings rate went negative for the first time every a few years ago, so we can assume that the average American family has little to no savings. Or we could just say their savings are likely to be less than their monthly income.

Ok, so let's say this family of 4 is one of the few remaining nuclear families.

If this family has an outstanding balance on their mortgage of $150,000, and $5,000 in medical bills, and $10,000 in student loans, and about $5,000 in credit card debt, that would mean the family has a negative net worth of negative 170,000 dollars minus whatever their belongings would total up to.

So if you estimated the value of the family's electronics, vehehicles, jewelry, etc....

You could probably say the family had a negative net worth of -160,000.

However, could we not add the average of $80,000 per American in debt we each owe under the Full Faith and Credit of the American government? Since our governmental debts have risen so dramatically in the last two years, and the average America owes 80,000 plus interest on that 13 trillion in debt, would that not add another -320,000 to this family of 4?

Would this not mean that the family I described has a net worth of - 480,000?

Yes or no? The family I described has a net worth of -480,000 which means the people in this American family are much worse off than the illegal aliens with no belongings rushing over our borders each night?

Perhaps the illegals should run back home for their own good?

W

This family could declare bankruptcy and that would eliminate their personal debt. As for their part of the national debt, there's is no way the Federal government would send them a bill for it. That's because the Federal government could just pay off the national debt by creating money out of nothing and then just sending it to the creditors whoever they may be. But are they worse off then illegal aliens in terms of net worth? Yes. But this won't stop the illegals from invading. That's because they still benefit. They can still get loans and government benefits. They could declare bankruptcy and then come back using some other fake I. D. and do it all over again. In fact that's what happened during the real estate boom years. Illegals got loans using fake I. D.'s and then the bad paper was sold to banks. The banks sold it to wall street. The bad debt was repackaged and insured by companies like AIG and then sold to pension funds etc. That's how the financial panic got started. Etc.

W wrote,

Yes or no? The family I described has a net worth of -480,000 which means the people in this American family are much worse off than the illegal aliens with no belongings rushing over our borders each night?

Perhaps the illegals should run back home for their own good?

Yes. But they don't know any better,...yet.

and,

redpony wrote,

Americans are now indentured.

Yes.

and,

AirbornSapper wrote,

From everything I am reading we are in year 2 of a 10 plus year depression

Yes. It would seem as though the piper is demanding his pay.

and,

Justthatguy wrote,

That's because the Federal government could just pay off the national debt by creating money out of nothing and then just sending it to the creditors whoever they may be.

Yes,.......but what flavor of inflation, and who pays for that flavor of inflation in the end?

So much for the free lunch.

Well, then, I guess we are better off than most right now. We rent, which means we do not have a debt for our place to live (although we hope to in order to get ourselves out of here and out of town), we pay things as they come due, we have NO credit cards, lines of credit, or any outstanding debts we have made to purchase "stuff". If we need something, we pay cash, if we cannot pay cash, the need/want either waits, or was not as needed or wanted as we thought.

We have not had any credit for about 13 years now, although looking at our home, you would not know it, I am just really good at finding freebies or bartering off of Craigslist, sanding, painting and re-doing. The only thing I suppose we are in for is the national debt, however I have always found it hard to accept that debt as ours, since we did not make it and it's making was outside of what we believe in a way of living. Only get what you can pay cash for, otherwise forget it.

Maybe all of us who live like that need to sit down our politicians and teach them how to live with little?

As for the illegal aliens, I KNOW they are better off than we are. I get to go grocery shopping twice monthly, and it is limited, and I see plenty of the illegals around here with carts FULL of food, paying with food cards, WIC and lots of cash, newer cars, much nicer clothes than we can afford for ourselves, and of course the usual living room filled with the full compliment of electronics (my own TV was free and is about 20 years old).

I just have to remember, their day will come. Everyone always has to pay for their lifestyles eventually, in one way or another. We have decided to live within our limits now and not have to worry about how and when our number for that will come up later.

Originally Posted by AirborneSapper7

Illegal Aliens at least have some where to run back too HOME; I think they are confused that things are going to get better; they are not; not for a long time. If Illegal's were smart (Not saying they are or are not) they would get before it is impossible to get.

The problem is that they believe what they see and what they see looks good. They see lackadaisical enforcement, and balance that against a reasonable prospect of a free ride for life. Even if they're occasionally put out of work, their illegal family still gets welfare, free education, and free medical care.

Yes, I even make my own dog food - can't afford to buy dog food.

I ran into some former co-workers recently and told them they might want to leave soon - they are from another country - not Mexico - if I had somewhere to go to I surely would have my passport ready.

"The U.S. Government is living off of Pay Day Loans from China

NAFTA
CAFTA

and all other free trade agreements killed America. What you are seeing is the parasites feeding on a dead carcus"

You are seeing what I see. I have always tempered my anger with the illegal problem with the thought that things could get so bad here that we might be flooding the border trying to go south - it could happen. But there is no doubt in my mind that if I went south I would be killed and probably tortured first so that is why I do not try to temper my frustration anymore. I am an ugly American. The world considers me complicit with everything that my "for the people, by the people, and of the people" government has done and is doing. There is no-where for me to go even if I did have resources.

I have not been blind all these decades. I heard the survey results about NAFTA on the radio. They said that educated people understood it and that only us working fools were against it - so of course everybody tried to pretend that they were educated. The world does not understand that most of us have never had a voice.