Here is a list of facts and a timeline that every American should have nearby. It may help you plan. Although, it is a little late to be planning.
2001 Projected US budget for 2009-2012 : Plus $850 billion a year
Projections now: Minus $1.2 trillion a year
US National Debt: $14 trillion
US Gross Domestic Product: $14.9 trillion
World GDP: 61.9 trillion
National Debt as a percent of GDP in 1980: 26.1%
National Debt as a percent of GDP last year: 62.2%
US deficit 2009: $1.75 trillion
US deficit to GDP ratio: 11.8%
Greece deficit to GDP ratio: 12.7%
Ratio required to join European Union: Less than 3%
All 2009 US tax revenues: $2.1 trillion
Net worth of the US and all its citizens in 2009: $54.2 trillion
To give you a point of reference, as stated above, theoretically, a nation must have a deficit to GDP ratio of less than 3% to join the European Union. For example, Hungary is receiving great criticism for failing to raise taxes and is finding it difficult to meet a 3.8% target imposed by the Union. Greece is out of control, its economy on the brink, hitting 12.7% deficit to GDP ratio. And the USA? By current standards we couldn’t even get into the Union. We are not far behind Greece, posting an 11.8% ratio of deficit to GDP. If Greece is going into the abyss, we may follow.
Now keep in the mind the following. The USA has unfunded liabilities of $107 billion for Medicare and Social Security. Liabilities for Medicaid are unknown. Liabilities for federal pensions are not fully known. In 2013 more than 78 million Baby Boomers will be able to collect Social Security without income limitation. The first year that they are eligible for Medicare is upon us now, 2011. They are signing up at the rate of 10,000 a day.
The Democrats and Republicans have been playing a game of musical chairs right up to the end. Each is betting or hoping that they will be seated when the music stops playing and the other will be left standing and blamed by the public for the disaster. The fact is that they are both to blame. The end game is not far off now.