No, I don’t think this is an April Fools’ joke. Obama released an official  statement on the White House website declaring that April is National Financial  Capability Month. It would be funny if it weren’t true. In his statement, Obama  said he wants to help young people better manage  their finances:

 “I call upon all Americans to observe this  month with programs and activities to improve their understanding of financial  principles and practices….My Administration is dedicated to helping people make  sound decisions in the marketplace….Together, we can prepare young people to  tackle financial challenges–from learning how to budget responsibly to  saving for college, starting a business, or opening a retirement account….My  Administration continues to encourage responsibility at all levels of our  financial system by cracking down on deceptive practices and ensuring that  consumers are informed of their rights.”

 I wonder if Obama is planning on leading by example anytime soon. He’s  trying to tell young people how to manage their money better, but he manages to  rack up over $6 trillion in debt during his time in office.

How ironic that one of the websites that Obama links to in his statement  leads to a Federal Reserve webpage that offers tips on “Getting the most from  your credit card.” One of the tips is “Stay  below your credit limit.” I wonder if the Federal Reserve is ever going to lead by example. They don’t bother trying to stay below their credit  limit. They just scare Americans into continuing to raise it. They don’t even  feel like they need a credit limit.

Of course, big government proponents argue that if Obama didn’t spend as much  as he has, and if the Fed didn’t create as much debt/money as it has, our entire  economy would implode. They’ve got to keep spending and pumping money into  certain sectors of the economy in order to prop it up. Bernanke even has to give  trillions of dollars away to foreign banks to “stabilize” the global  economy.

Government officials think comparing government finances to household  finances is not fair. They don’t like the comparison, because it makes them look  completely irresponsible. But they claim that there really is a distinction  between the two. They agree that households should operate on a tight budget.  But because it’s government’s job to “spur growth” in the private sector, to  “create jobs” and to keep unemployment down, they have no choice but to tax  heavily, borrow heavily and print debt-based currency like there’s no tomorrow.  That’s how they’re going to get the economy going again.

But that’s not doing the trick anymore. That kind of government is  unsustainable. Besides, it’s not government’s job to do any of those  things. It isn’t even capable of running the economy.

Obama and the Federal Reserve are great examples of how not to manage  one’s finances. It doesn’t matter if you’re talking about a household or a huge,  federal government. If you live beyond your means, you will be destined to live  beneath your means