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ROB MCCLENDON: WELL THE FEDERAL CHECKBOOK HAS BEEN IN OVERDRAFT TERRITORY FOR
SO LONG, IT FEELS LIKE BUSINESS AS USUAL, CERTAINLY NOT A GOOD
FEELING THOUGH TO GET COMFY WITH ECONOMISTS DIFFER OVER WHETHER IT'S
FAIR TO COMPARE THE WHOLE COUNTRY'S BALANCE SHEET TO OUR HOUSEHOLD'S.
BUT IF YOU WERE BRINGING HOME A MONTHLY FOUR THOUSAND DOLLAR PAYCHECK
WHILE SPENDING SEVEN THOUSAND DOLLARS MONTH AFTER MONTH, IT IS BOUND
TO CATCH UP WITH YOU.
AND THAT IS WHAT WE HAVE BEEN DOING WITH OUR FEDERAL DEFICIT.
THE DEBT HANGING OVER OUR COLLECTIVE AMERICAN HOUSEHOLD SURPASSED
SIXTEEN TRILLION DOLLARS LAST YEAR.
WHICH IF YOU DIVIDE THAT UP BETWEEN EVERY WARM BLOODED AMERICAN IT'S OVER
FOUR THOUSAND DOLLARS A PIECE THAT WE ARE ALL IN THE RED.
ONCE AGAIN HERE IS FRANK SESNO TO HELP US FACE THE FACTS.
FRANK SESNO: OUR PARENTS WARNED US; STAY OUT OF DEBT.
WELL SORRY MOM, SORRY DAD, WE'VE GOT A LOT OF IT, THANKS LARGELY TO UNCLE
SAM.
THE NATIONAL DEBT IS HEADING FOR 16 TRILLION DOLLARS, A FIGURE SO LARGE
THEY HAD TO MODIFY THIS NATIONAL DEBT CLOCK IN NEW YORK CITY JUST TO
ACCOMMODATE ALL THE DIGITS.
BUT THINK OF IT ANOTHER WAY, FIFTY THOUSAND DOLLARS PER CITIZEN.
IF WE HAD THE MONEY, THAT WOULD BE ENOUGH FOR EVERY SINGLE ONE OF US TO BUY A
MERCEDES.
OF COURSE DEBT ISN'T AUTOMATICALLY EVIL.
IF IT WEREN'T FOR DEBT, MOST PEOPLE COULDN'T SECURE A MORTGAGE TO BUY A
HOUSE, OR A LOAN TO START A SMALL BUSINESS AND SPUR ECONOMIC GROWTH.
BORROWING AND CREDIT AS EVERY MOM-AND-POP STORE KNOWS ARE ESSENTIAL FOR
INVESTMENT AND PROFITABILITY.
BUT SOME DEBT ISN'T SMART, IT'S JUST PLAIN SCARY.
RIGHT NOW ABOUT SIX PERCENT OF THE U S FEDERAL BUDGET IS USED JUST TO PAY
THE INTEREST ON THE NATIONAL DEBT AND THAT FIGURE WILL KEEP GROWING
MORE IF INTERST RATES RISE.
OUR TOTAL NATIONAL DEBT NOW EXCEEDS THE COUNTRY'S TOTAL ECONOMIC OUTPUT.
NOW WHEN YOU USE THAT YARDSTICK, A LOT OF OTHER COUNTRIES ARE DEEPER IN
THE HOLE, INCLUDING JAPAN.
TOO MUCH DEBT CAN SQUEEZE THE LIFE OUT OF ANYTHING, FAMILIES, COMPANIES, WHOLE
COUNTRIES.
IF THAT'S WHAT'S DOWN THE ROAD ALL THE MORE REASON WE HAVE TO FACE THE FACTS,
TODAY.