The government debt is the difference between revenue (taxes) and the expenditures. It’s basically on our credit card. It matters because bonds have to be sold to finance that debt. Interest has to be paid to cover that debt. Those bonds are in competition with other debt that needs to be financed, including Mortgage-Backed Securities. All that competition drives interest rates higher.
Here are some mind-bending numbers (and they’re going up every minute):
US National Debt almost $35 Trillion, which equates to over $103,500 per citizen (including your kids), and $267,000 for every taxpayer. A projected $892 Billion in interest for 2024 debt servicing, almost 2X 2022.
Oh yeah California is also in trouble… Let’s add $602 Billion, or $15,482 per citizen. The Unfunded Pension Liability for government worker adds another $80,000 per citizen.
So if we can get every man, women and child in California come up with around $200,000, we could at least pay off our credit card… accumulated up to now.
Not going to get into the politics of this, because both sides has contributed to this mess. It’s good to be aware of what’s transpiring.
For continuously updated numbers you can download the app USDebtClock
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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