Crown Warns That Uncle Sam's "Extend and Pretend" Policy Endangers America's Futures

"Our budget crisis is not a Democratic problem or a Republican problem, it is a math problem," said Crown's CEO Chuck Bentley. "The numbers do not add up."

KNOXVILLE, Tenn., Oct. 17, 2013 /PRNewswire-USNewswire/ -- Crown Financial Ministries CEO Chuck Bentley said that the debt ceiling deal reached overnight "irresponsibly creates an Extend-and-Pretend Policy that ignores market reality. With this level of debt, we cannot continue indefinitely to cover profligate spending. Politicians offered Americans a false choice during the shutdown between defaulting on mandated debt payments or extending our current policies, with our eyes shut to the consequences."

"The Obama Administration and its allies in Congress drew a new Red Line – keeping the country in the red, through deficit spending, and they won this battle. But our budget crisis is not a Democratic problem or a Republican problem, it is a math problem. The numbers do not add up."

Consider a breakdown of Uncle Sam's Budget in 2012:

• Dollars in: U.S tax revenue  -- $2.5 trillion
• Dollars out: Federal spending -- $3.6 trillion 
• Budget shortfall: $1.1 trillion 
• National debt: $16.7 trillion

• Budget Cuts 2012: Zero


• Wild Card: Unfunded liabilities/contracts: $120 trillion

By adjusting the zeros, this translates into a Family Budget as follows: 


• Dollars in: Your annual income -- $25,000

• Dollars out: Your household spending -- $36,000  
• Budget Shortfall: $11,000
• Your credit card debt: $167,000

• Budget cuts: Zero
• Wild Card: Unfunded Financial Obligations: $1,200,000

Federal spending grew 71 percent faster than inflation over the last 20 years, according to the Heritage Foundation. Even today, interest on the debt is the fifth largest federal spending category partially camouflaged by artificially low interest rates, courtesy of the Federal Reserve Board.

"Any financial planner can tell you that a family whose debt increased by 55 percent over the last few years, is in trouble," said Bentley. "Spending cuts and budget changes must be discussed when we go through this again in a few months."

For interviews on family or federal debt and budgeting, e-mail [email protected].

Crown, a non-profit, helps people and businesses integrate their values into business practices, debt reduction, and financial decision-making. For more than 40 years, Crown has been offering economic analysis and advice based on timeless truths. Theirs is a strong, international grassroots organization with offices in the U.S. and overseas, where they contribute to educational and anti-poverty programs. For more information, go to www.crown.org or call 800-722-1976

SOURCE Crown