If they looked at a balance sheet  that was like the one of our government, I think most rational intelligent people could tell you that there is only one outcome for that entity.  If a small business had a balance sheet that looked that bad, I doubt many banks would lend money to it.

For starters, they owe a lot more than they are worth. Then they spend a lot more than they bring in every year and have for most years in the last 30 or more. In addition they have to borrow money just to pay the interest on the debt and other outstanding liabilities .

As if all of this weren’t bad enough, they work to come up with more things to spend money on. So why aren’t people reacting to this at all? They aren’t storming Washington to stop the madness, they aren’t doing everything they can to get their families out before it all crashes.

The only explanation I can think of is that they are so emotionally attached to the outcome of it all that they are in denial. They won’t admit to themselves that life as they know it could drastically change and never return to the way it was.

Obviously things cannot continue the way they have been going. We cannot rack up debt indefinitely. On the other hand, no one wants to quit getting all of the freebies they are used to receiving from the government.

No matter which path you choose there will be extreme withdrawal symptoms and a lot of unrest. There is no good ending for all of this.

However, people are so in denial, they would rather continue on until it is too late to get out from under this mess.

I think it is like a bunch of people playing on the beach on a nice summer day when there are all kinds of signs that a tsunami is coming. However, rather than leave the comfort of the beach, they all decide to pretend that things will be OK until it is too late to escape.