That figure does not reflect at least $150 billion in additional red ink from an upcoming deficit-financed economic stimulus measure. The deficit for 2008 could reach $400 billion.
Reference Article: U.S. Deficit to Climb to $250 Billion
The current national debt stands at 9.1 trillion, http://www.brillig.com/debt_clock/, but our entire obligated debt (including social security obligations, consumer debt and home equity loans) is closer to 50 trillion.
The projected GDP for 2008 is about 14.5 trillion, http://www.whitehouse.gov/omb/budget/fy2008/summarytables.html
Lets take away the ‘trillion’ from these numbers and show you a realistic example of how much trouble we are really in. If you made 14.5 thousand dollars a year, with a 50 thousand dollar mortgage, it would take about 30 years to buy off. So, we basically have mortgaged the country for 30 years. This is very possible to pay back, but we are strapped for 30 years without much flexibility for a downturn. If you lost your job and didn’t have any savings to pay your mortgage for a few months while you looked for another job, you would have to sell your house. If you lost your job for 2-3 years, your saving would be wiped out and you would have to sell your house. That is what is happening in America. We have lost our job (the economy is in a recession) and are now faced with selling anything we can (selling national banks, brokerages to foreigners like Citigroup did last week) to continue to pay our mortgage. If we cannot get another job (if the economy doesn’t turn around) quickly, we will be forces to refinance or ask our debtors to forgive our debt or sell our house (country).
This is a very dangerous time for the US. We are on the brink of financial ruin. We need to get our mortgage paid down and start a savings account for raining days like the one we are having right now.
On top of this, interest rates are rising around the world. The US debt is basically a sub-prime loan to the world – and we are at the mercy of the interest rates of the world banks. If we can’t pay the increase we will have to liquidate our stuff (homes, cars, TV's, clothes, etc) to raise money to pay the banks (foreign nations) what we own them. We are about to get a lot poorer as a nation.