So I realized today that payday loans have been dominating recent posts. In fact, the last six or seven have been all about that. This is a finance blog, not a payday loans blog, so it is time to focus blog posts in other topics. One very interesting topic is financial responsibility. Let’s talk about that, and the government’s lack thereof.

Barack Obama recently announced that his budget for the first year in office will be at least 1.2 trillion dollars of deficit spending. For those unfamiliar, a deficit is the opposite of a surplus. This means that rather than have 1.2 trillion dollars left over at the end of the year, they are going to spend 1.2 trillion dollars they don’t have. Does anyone see anything overly obvious and wrong about this situation?

How about the fact that when businesses do this, they get a bailout. When individuals do this, they get kicked to the curb. And what’s worse about this is that the government is spending OUR money! Well, 1.2 trillions dollars they will spend is no one’s money, since it doesn’t exist. Guess we will be borrowing from the Chinese yet again…

So what happens if all of America’s debtors decide to come collect the debt? That’s easy, we simply print more money! Of course, brilliant! Well…at least until inflation kicks in and money is worthless. Think about it Mr. Obama- is it really worth creating 3 to 4 million jobs if their paychecks will buy nothing more than a gallon of milk and a loaf of bread? For the last 8 years we have been dodging around the path to economic collapse. The Obama administration has now steadied the course and expedited our arrival.

It’s no surprise 2012 was picked by so many ancient cultures to be the end of the world. It’s looking like that will be the end of our country as we know it at least. And if our country collapses, the rest of the world will not be far behind. Maybe those doomsday soothsayers were on to something? Who knows, all I know is this: even if businesses and governments do not need to exercise fiscal restraint and responsibility, we do. So make sure you do. Keep a budget and don’t exceed it. If you live on credit and borrowed money, eventually the floor will be pulled out from under you.

So get out of debt, have adequate savings and prepare for the worst. Because as they say, it has to get worse before it ever gets better.