Happy Days Are Here Again!!

Wow!  What an amazing last few weeks it has been!!  All this talk of the U.S. government defaulting on payments and maybe losing their credit rating which would make borrowing more expensive....it has all been solved!  No more problems because Congress has fixed it!!

On the count of three now...everybody now...."HIP, HIP, HOORAY!!!

It looks likes the "Big Debt Deal" agreed on in D.C. is going to cut $2.4 trillion in spending over the next 10 years.  But before you go and buy a big bottle of champagne to celebrate this tremendous good news....remember that in 2011 alone we were adding $1.5 trillion to the credit card.

So let's rephrase what was agreed to;  (but has to be voted on today)
The USA has $14.2 trillion in debt that has been accumulated since the days of Ronald Reagan.  Most recently, due to the great recession which collapsed tax revenues and multiplied demands for government services, and our President Obama's continuing spending spree, we have added about $2.4 trillion in debt over the past 2 years.

And the "DEBT DEAL" that was agreed upon was to cut $2.4 trillion OVER THE NEXT 10 YEARS!!

Let me repeat this with emphasis added:  WE SPENT $2.4 trillion over the last 2 years borrowing money we didn't have...and WE HOPE TO CUT $2.4 trillion over the NEXT 10 YEARS.  Does that truly make anybody believe we have "fixed" our spending problem??  Seriously?!?!

The USA has now reached a point where if we can't borrow more money from someone else, we can't meet our current debt obligations.  So our only hope is to raise the limit on the amount of money we can borrow from others.  Not a good place to be.

Update:  The Asian stock markets were up firmly overnight because of the positive USA debt news...but now the US stock market is down over 80 points!!  What is going on???   This isn't supposed to happen!!  This post was titled HAPPY DAYS!  Our markets were supposed to go up!  Our wealth was supposed to have increased?  Dang it all!  Stupid news seems to be happening so fast that I can't even write a positive article about our debt problem because the news has changed from when I started writing.

When it all comes apart....it will come like a flood.