Just the facts, ma'am

Some time ago there was a TV cop series set in Los Angeles starring Jack Webb in the role of Detective Joe Friday. Joe’s favorite line, when questioning witnesses about a crime, is noted in the title to this essay.

Keeping with Joe’s no-nonsense approach to dealing with crimes and criminal activities, TheFundamentals brings to you some very important facts as reported by USA Today on May 29, 2009.

Here are the facts:

Each household in the US of A is responsible for debt totaling $668,621.00. Of that debt, each household is personally responsible for $121,953.00 in the form of their mortgages, consumer debt and other obligations. The remaining and bulk of the debt is $546,668.00 and yes, you guessed it, you may thank the wonderful geniuses in Washington, DC for your households portion of commitments for Medicare, Social Security, Federal Debt, Military and Civilian retirement programs and other commitments. Read the entire story at http://www.usatoday.com/news/washington/2009-05-28-debt_N.htm

TheFundamentals refers to this situation as promiscuous financial behavior. Just as promiscuous sexual behavior will lead to ruined lives because of both physical and emotional consequences so will promiscuous financial behavior lead to ruined lives. No one; no family; no household; no business; no government, even with the ability to print currency, can withstand the burden of this level of debt.

What to do about it?

The government of Germany is about to pass a constitutional amendment that will, for all intents and purposes, ban deficit spending. If government insists on continuing promiscuous financial behavior it will be forced to collect taxes necessary to pay the bills. Otherwise, unless the politicians wish to commit political suicide, they will be forced to curtail spending to levels set in the constitutional amendment.

The party out of power in the US of A needs to employ a German translator ASAP. The party out of power needs to introduce and start the mechanisms necessary to passing a constitutional amendment that outlaws deficit spending in the US of A.

Those are the facts. Add up the value of your households assets. If they are less than $668,000.00, your household is insolvent, at least from the viewpoint of a lender. You may or may not be concerned about this situation but a lender is quite concerned about the situation. Whenever you hear a politician or a bureaucrat describing the “credit crisis” they are misleading you. There is no credit crisis. Lenders just are not about to make loans to insolvent households.

You now have the facts. And, you now have the solution.