Yeah, sure. Jobless recovery, right? With old-method unemployment calculations in the 20% range, and the State lie being @ 10%. Seems dire in an economy whose GDP is 70% spending. (Note the media often compares old-method numbers (which are higher) to new method, this in and of itself is propaganda).
Treasuries - 80% were bought by the Federal Reserve in 2009. Interest rates unsustainably low, and if the rates pop to attract new investors, debt service load will go form 6-8% of budget to multiples of that.
1 in 6 FHA loans in the trailing 12 months is delinquent.
Deficit spending is at an all time high and burgeoning when there is potential to need to raise rates to attract treasury investors. Very, very dangerous to be there. China this week unloaded 32 billion in treasuries. Japan is now #1 holder of debt. US borrows Chinese money to arm Taiwan, and wonders why China is upset.
These "Teaparty" issues have percolated up with Ross Perot several times before. One might take a look at perotcharts.com before spouting off about progressivism being a good thing (The top 1% earners pay 40% of all taxes. The top 10% pay 60% of all taxes, yet there is "more" wanted by the supposed proles, but more like its incited class warfare to create division despite the evil rich paying a lot of the freight.) . Yet, as Perot and folks like Ron Paul were laughed at in the past, now not so much. You see, they (Perot, Paul, others) basically predicted the future with shocking accuracy. The deficits, the spending beyond income even during prosperity, the perpetual wars and the unfunded social entitlement programs that have no hope of working even during good economic times is eclipsing American power.
Some are trying to erect a quasi-socialist state like that of say, Sweden. Yet, Sweden is a homogeneous culture, small population ~9 million, good natural borders and before rampant taxation moved a number of prolific businesses away, this country of 9 million made cars, cell phones, jet aircraft, heavy industry equipment, gave rise to Ikea, etc.
The problem is simple. The US is 300+ million with a leaky border. Entitlements will break this union faster than can be imagined. One might argue this is the point and a Cloward-Piven strategy, but its probably just ignorance.
The US competes with India and China. Brazil and Russia are also players, but the two main players are India and China. These countries are not dumb, are being lead in a much smarter way, and are not shooting themselves in the foot. These "socialist/communist" countries are nothing of the sort, the entitlements are bare to non existent, they foster business, ruthlessly defend local business against foreign business and are more capitalist than the United States. They have more people in their top 10% of every category than the US has people.
Also, there are many fiscal bombs in the waiting. A list ensues.
Mandatory spending: $1.89 trillion (+6.2%) (FY2009)
*
o $644 billion - Social Security
o $408 billion - Medicare
o $224 billion - Medicaid and the State Children's Health Insurance Program (SCHIP)
o $360 billion - Unemployment/Welfare/Other mandatory spending
o $260 billion - Interest on National Debt
Please note the ADMINISTRATION costs of all this psychotic spending is in the DISCRETIONARY budget and is not listed here. (e.g., Social Security is ~ 9billion/year)
REPEAT:
64%++ of our federal budget is: Social Security, Welfare, Workfare, Interest on Debt, Medicare, Medicaid. This has proven over time to be the biggest financial mistake ever made, and China and India don't have to repeat what is dooming the USA to be a second-world country.
Federal Budget Deficit Bomb: It started with Bush: The wars, TARP, spending. Obama is only accelerating spending. His budget for 2010 is $14.3 trillion. It was $7.8 trillion in 2005. The CBO predicts future deficits around 4 percent through 2020. America's debt at 84 percent of GDP will soon pass that toxic 90 percent trigger point
U.S. Foreign Trade Bomb: $400 billion in trade deficits are added each year and foreigners now own $2.5 trillion of America, with China holding over $1.3 trillion in Treasury debt.
Weakening U.S. Dollar as Foreign Reserve Currency Bomb: If the dollar is replaced as main foreign reserves - and it's falling - the main index measuring dollar strength has gone from 120 at the Clinton-to-Bush handoff to below 80 today. ( http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax )
Cheap Money Bomb - Credit Ratings Down, Rates Up: As debt climbs and the bank ratings fall, interest rates will skyrocket.
Global Real Estate Bomb: Dubai is falling apart because of over-speculation. People stopped buying real estate. They've got massive empty towers. Even the tallest building sits empty. Commercial real estate bubble is now $1.7 trillion. People are still behind on mortgages at all-time highs; did we really hit bottom on real estate yet?
Social Security Bomb: They've been telling us for a while that by 2035 it will go haywire. But for the first time in history Social Security is in the red. Check your calendar: Is it 2035 yet? Let's see, will politicians cut benefits? Nope. They need to hand out more Bread and Circus.
Medicare Nuclear Bomb: It's going broke faster than Social Security. The Republican progressive prescription drug benefit added an unfunded $8.1 trillion. In five years, estimates rose from about $35 trillion to over $60 trillion now. And they are talking about expanding it in the new health care bill? Along with covering 30 million new people?
State and Local Government Budget Bombs: Deficits of $110 billion in 2010; $178 billion in 2011, on top of more that $450 billion in under-funded state and municipal employee pension funds. California alone is 20 billion in the hole on a 100 billion dollar general fund.
Under-funded Corporate Pensions Bomb: Guess who picks up the tab for the $409 billion deficit in under-funded pensions that default? Taxpayers.
Consumer Debt Bomb: Americans are still living beyond their means. Even with a downturn, consumer debt rose from about $2.3 to $2.5 trillion. Hmm, spending more, earning less....
Personal Savings Bomb: Before the 2008 meltdown savings rate dropped from about 10 percent in the early 1980s to below zero. Now it's creeping up: 70 percent of our economy is based on spending.
War and Military Defense Deficits: Costs of Iraq and Afghanistan wars - $200+ billion annually, $3 trillion minimum... long-term costs for veteran medical care, equipment renewal, recruitment.
Fed/Treasury Bailout Bombs: Government shifts burden of failing businesses from those businesses to the American taxpayer.
Insatiable Washington Lobbyists Bombs: You've seen what no lobbyists in an administration looks like. It ends up being 30-plus. Andy Stern, the unions, Goldman - voters and even Congress is becoming irrelevant.
Shadow Banking Derivatives Bomb: Wall Street wants no regulation of this $670 trillion, high-risk, out-of-control casino that's highly leveraged versus the $50 trillion total GDP of all nations. We forget that derivatives almost destroyed global economies in 2008-09, finally will by 2012.
Medicare, Medicaid, SCHIP, Social Security, Welfare, Workfare: Bankrupt.
Post Office: Bankrupt.
Fannie Mae, Sallie Mae; Freddie Mac : Bankrupt.
Interest on Debt: 10% of statutory budget at historic interest rate lows.
Amtrak: Bankrupt.
FDIC: Bankrupt.
What you don't seem to get is they are bribing you with your own money while skimming off the top and operate an illegal Fedzilla cartel that vastly exceeds constitutional limits of power.
Comments
Yeah, sure. Jobless recovery, right? With old-method unemployment calculations in the 20% range, and the State lie being @ 10%. Seems dire in an economy whose GDP is 70% spending. (Note the media often compares old-method numbers (which are higher) to new method, this in and of itself is propaganda).
Treasuries - 80% were bought by the Federal Reserve in 2009. Interest rates unsustainably low, and if the rates pop to attract new investors, debt service load will go form 6-8% of budget to multiples of that.
1 in 6 FHA loans in the trailing 12 months is delinquent.
Deficit spending is at an all time high and burgeoning when there is potential to need to raise rates to attract treasury investors. Very, very dangerous to be there. China this week unloaded 32 billion in treasuries. Japan is now #1 holder of debt. US borrows Chinese money to arm Taiwan, and wonders why China is upset.
These "Teaparty" issues have percolated up with Ross Perot several times before. One might take a look at perotcharts.com before spouting off about progressivism being a good thing (The top 1% earners pay 40% of all taxes. The top 10% pay 60% of all taxes, yet there is "more" wanted by the supposed proles, but more like its incited class warfare to create division despite the evil rich paying a lot of the freight.) . Yet, as Perot and folks like Ron Paul were laughed at in the past, now not so much. You see, they (Perot, Paul, others) basically predicted the future with shocking accuracy. The deficits, the spending beyond income even during prosperity, the perpetual wars and the unfunded social entitlement programs that have no hope of working even during good economic times is eclipsing American power.
Some are trying to erect a quasi-socialist state like that of say, Sweden. Yet, Sweden is a homogeneous culture, small population ~9 million, good natural borders and before rampant taxation moved a number of prolific businesses away, this country of 9 million made cars, cell phones, jet aircraft, heavy industry equipment, gave rise to Ikea, etc.
The problem is simple. The US is 300+ million with a leaky border. Entitlements will break this union faster than can be imagined. One might argue this is the point and a Cloward-Piven strategy, but its probably just ignorance.
The US competes with India and China. Brazil and Russia are also players, but the two main players are India and China. These countries are not dumb, are being lead in a much smarter way, and are not shooting themselves in the foot. These "socialist/communist" countries are nothing of the sort, the entitlements are bare to non existent, they foster business, ruthlessly defend local business against foreign business and are more capitalist than the United States. They have more people in their top 10% of every category than the US has people.
Also, there are many fiscal bombs in the waiting. A list ensues.
Mandatory spending: $1.89 trillion (+6.2%) (FY2009) * o $644 billion - Social Security o $408 billion - Medicare o $224 billion - Medicaid and the State Children's Health Insurance Program (SCHIP) o $360 billion - Unemployment/Welfare/Other mandatory spending o $260 billion - Interest on National Debt
Please note the ADMINISTRATION costs of all this psychotic spending is in the DISCRETIONARY budget and is not listed here. (e.g., Social Security is ~ 9billion/year)
REPEAT:
64%++ of our federal budget is: Social Security, Welfare, Workfare, Interest on Debt, Medicare, Medicaid. This has proven over time to be the biggest financial mistake ever made, and China and India don't have to repeat what is dooming the USA to be a second-world country.
Federal Budget Deficit Bomb: It started with Bush: The wars, TARP, spending. Obama is only accelerating spending. His budget for 2010 is $14.3 trillion. It was $7.8 trillion in 2005. The CBO predicts future deficits around 4 percent through 2020. America's debt at 84 percent of GDP will soon pass that toxic 90 percent trigger point
U.S. Foreign Trade Bomb: $400 billion in trade deficits are added each year and foreigners now own $2.5 trillion of America, with China holding over $1.3 trillion in Treasury debt. Weakening U.S. Dollar as Foreign Reserve Currency Bomb: If the dollar is replaced as main foreign reserves - and it's falling - the main index measuring dollar strength has gone from 120 at the Clinton-to-Bush handoff to below 80 today. ( http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax )
Cheap Money Bomb - Credit Ratings Down, Rates Up: As debt climbs and the bank ratings fall, interest rates will skyrocket.
Global Real Estate Bomb: Dubai is falling apart because of over-speculation. People stopped buying real estate. They've got massive empty towers. Even the tallest building sits empty. Commercial real estate bubble is now $1.7 trillion. People are still behind on mortgages at all-time highs; did we really hit bottom on real estate yet?
Social Security Bomb: They've been telling us for a while that by 2035 it will go haywire. But for the first time in history Social Security is in the red. Check your calendar: Is it 2035 yet? Let's see, will politicians cut benefits? Nope. They need to hand out more Bread and Circus.
Medicare Nuclear Bomb: It's going broke faster than Social Security. The Republican progressive prescription drug benefit added an unfunded $8.1 trillion. In five years, estimates rose from about $35 trillion to over $60 trillion now. And they are talking about expanding it in the new health care bill? Along with covering 30 million new people?
State and Local Government Budget Bombs: Deficits of $110 billion in 2010; $178 billion in 2011, on top of more that $450 billion in under-funded state and municipal employee pension funds. California alone is 20 billion in the hole on a 100 billion dollar general fund.
Under-funded Corporate Pensions Bomb: Guess who picks up the tab for the $409 billion deficit in under-funded pensions that default? Taxpayers.
Consumer Debt Bomb: Americans are still living beyond their means. Even with a downturn, consumer debt rose from about $2.3 to $2.5 trillion. Hmm, spending more, earning less....
Personal Savings Bomb: Before the 2008 meltdown savings rate dropped from about 10 percent in the early 1980s to below zero. Now it's creeping up: 70 percent of our economy is based on spending.
War and Military Defense Deficits: Costs of Iraq and Afghanistan wars - $200+ billion annually, $3 trillion minimum... long-term costs for veteran medical care, equipment renewal, recruitment. Fed/Treasury Bailout Bombs: Government shifts burden of failing businesses from those businesses to the American taxpayer.
Insatiable Washington Lobbyists Bombs: You've seen what no lobbyists in an administration looks like. It ends up being 30-plus. Andy Stern, the unions, Goldman - voters and even Congress is becoming irrelevant.
Shadow Banking Derivatives Bomb: Wall Street wants no regulation of this $670 trillion, high-risk, out-of-control casino that's highly leveraged versus the $50 trillion total GDP of all nations. We forget that derivatives almost destroyed global economies in 2008-09, finally will by 2012.
Medicare, Medicaid, SCHIP, Social Security, Welfare, Workfare: Bankrupt. Post Office: Bankrupt. Fannie Mae, Sallie Mae; Freddie Mac : Bankrupt. Interest on Debt: 10% of statutory budget at historic interest rate lows. Amtrak: Bankrupt. FDIC: Bankrupt.
What you don't seem to get is they are bribing you with your own money while skimming off the top and operate an illegal Fedzilla cartel that vastly exceeds constitutional limits of power.
Curious, why is this getting downvoted? All I see is a bunch of data and analysis, all relevant to this discussion.
Because he didn't stop at data and analysis and went off on a zealot's rant that included poor logic and dodgy conclusions.
You cant refute a single point. Not one. Ad hominem, troll.
Don't downvote, discuss?