U.S. President Barack Obama's budget for 2011, presented on Monday, shows a deficit of $1.3 trillion for the fiscal year that ends that September. That shortfall is actually $287 billion more than the Congressional Budget Office (CBO) had projected less than a week earlier, when it had released a budget forecast of its own for that same fiscal year.
Granted, we're getting used to seeing budget deficits expand at a pretty quick pace these days. But even by government standards an increase of nearly $290 billion in less than a week is almost too much to bear!
All kidding aside, $105 billion of this $287 billion increase came about mostly because of a change in "assumptions." The CBO budget assumed that all the 2001 Bush tax cuts would be reversed, whereas the Obama budget reverses only those that applied to the rich (those with incomes above $250,000).
The CBO budget also made the ridiculous assumption that the Alternative Minimum Tax (AMT) would be allowed to revert to its 2001 level, forcing 25 million taxpayers to calculate their taxes twice - and to then pay the higher of the two estimates. That was never going to happen, and the Obama budget finally abandons that idiotic piece of fiction.
The disparity in deficit projections between the CBO and the Obama administration weren't limited just to fiscal 2011. For the period from 2011 to 2020, the CBO forecasted a budget deficit of $6.047 trillion, while the Obama budget released just days later projected a shortfall of $8.532 trillion - a difference of $2.485 trillion.
The difference in assumptions between the CBO and Obama projections explains nearly half of that difference. Of course, that still leaves the other half.
And a troublesome half it is.
In 2011, most of the extra spending seems to be devoted to a jobs program and to additional defense expenditures for the wars in Iraq and Afghanistan. It's somewhat disheartening to see that the administration can't project more progress on the budget-deficit issue during the next few years.
After all, the Obama budget even assumes that we'll be helped along by a robust economic recovery.
The lowest projected deficit in the next decade is a $706 billion shortfall forecast for the fiscal year that ends in September 2014. That doesn't sound too bad in the context of the 2009-2011 figures, but it's almost $300 billion larger than the highest federal-budget deficit in human history before 2009.
The most alarming trend of all appears if you compare the current budget with what had been projected for the fiscal 2002 budget, a forecast made in February 2001 by U.S. President George W. Bush, who was in his first year in office. As is the practice today, budget projections back then were made in 10-year increments. So it's worth comparing the spending projections for 2011 made by the Bush administration with what's actually been put into the budget.
Our finding: The February 2001 projections were hugely too optimistic; current spending is fully 41% higher than what had been projected at that time.
That has two implications. First, it shows that budgetary control by both parties since 2001 has been utterly lousy (the Republicans controlled the presidency and the U.S. House of Representatives for the 2002 through 2007 budgets, but spending still soared). Second, it shows that out-year projections a decade into the future are often ludicrously over-optimistic.
The implications for the current budget are ominous. If 2020 spending exceeds current projections to the same degree that current spending exceeds the projections made back in 2001, then spending will amount to 33.4% of 2020 gross domestic product (GDP). Add in state and local spending, and total U.S. public expenditure would exceed 50% of GDP, close to that of the worst European countries: France and Sweden.
What's more, since 2020 revenue is projected at only 19.6% of GDP, taxes would have to go up by 70% from currently projected levels to make the budget balance.
Yikes! Even if we introduced a federal Value Added Tax to try to meet that deficit, it would have to be set at an impossibly high rate.
The current budgetary shambles is the fault of two presidential administrations, and both parties in Congress. They have wrecked what back in 2001 was a perfectly solid U.S. budgetary position.
If U.S. budgetary problems continue on their current path, our elected officials in Washington will completely destroy the U.S. financial position in the next decade, and will lead the nation into bankruptcy.
We need an immediate improvement in politician behavior on both sides of the aisle.
Otherwise, it will be too late.
News and Related Story Links:
- U.S. News & World Report:
Peter Roff: Obama's Not-So-Secret Plan to Raise Taxes - WGRZ.com:
Obama Wants to Extend President Bush's Tax Cuts - Money Morning:
Obama's Budget Adds $1 Trillion in Taxes, Balloons Federal Deficit - Congressional Budget Office:
Official Web Site - SFGate.com (San Francisco Chronicle):
Many now paying AMT won't feel Obama tax hikes - Wikipedia:
Alternative Minimum Tax - WhiteHouse.gov:
George W. Bush - WhiteHouse.gov:
Barack Obama - American Tax Policy Institute:
Designing a Federal VAT: Summary and Recommendations
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Concerning the article by Martin Hutchison: You and people who think like you forget that there was a budget surplus when Bush and the Republicans came into office. Nobody complained about the cost of the bombs being thrown on countries that did NOT attack the USA. NObody is complaining about the huge military expenditures which are constantly expanding, although there isn't an enemy in the world that can match the American military might. Nobody complained about deregulation, which resulted in the bailout of big banks and similar companies. Nobody complains about the million/billion $ bonuses these companies pay their incompetent executives from taxpayer money.
Perhaps you should start adding the cost of these items, all a result of policies under George W. and company.
Will there ever be a time when we can blame Obama, or will we always just blame Bush. Come on, get real, this president is spending us into the poor house. And all this while he gives government workers raises and increases the number of government employees. The man is a socialilst, pure and simple.
Lydai, please re-read the article. Your rabid partisian blinders, limited understanding of the budget and the small % that goes to defense, and weak understanding of economics and US History are showing.
The deregulation, Glass Steagall removal, and CFMA occurred under Clinton. These allowed the banks to go crazy. The protection of Fanny and Freddy was also Democratic in origin.
No doubt Bush was an idiot but, your post highlights why nothing is getting any better in this country.
Democrats defend Democrats and Republicans defend Republicans. Until the public wakes up and realizes they have been played by both parties, things will continue to get worse.
It will take a long time to make any progress here, so, things are going to get a lot worse.
I didn't read into this article that there was Any praise for Bush policies. He made the point that both administrations under estimate and over spend and unless we have a complete overhaul of the political disconnect that BOTH sides abuse, we will all suffer. We need to stop blaming one side or the other and just look at the numbers as they are and quit wasting time defending or attacking. It's just what politicians do. Rather than deal with the problems, spend your time blaming your opponent and distract "the people" so that they forget to hold you accountable while you waste more tax dollars. Demand accountability in ALL politicians or get rid of them. Its our only hope!
your understanding of economics/history and facts are enough to make me puke.
No one can match our military might? Did you ever hear of a little skirmish called Vietnam, we had one before that too, they called it Korea..both, at best were draws…because POLITICIANS tried to win a war with diplomacy, against a people who hated us and our ideals..kinda like now…we will not win the war against terrorism, as long as the white house is a sympathizer.
You are right..no one except the republicans were complaining when the Dems were forcing banks to lower lending standards to allow everyone to buy a house..you know, thru the Community Re-Investment act…that CLINTON really started turning the screws on…
Read a book now and again..
'You and people like you forget that there was a budget surplus when Bush and the Republicans came into office."
For those stupid enough to fall in line with this argument, understand this: if a government entity has a 'surplus,' of money, they have STOLEN FROM THE TAXPAYERS. Jesus…I am so tired of idiots on both sides of this. You all need to understand something, and I'll use simple language: WHEN YOU SPEND MORE THAN YOU MAKE, ESPECIALLY ON A REGULAR BASIS, YOU NEVER LEAVE A STATE OF DEBT.
You people are concerned about fiscal responsibility? Simple solution: adhere to the three basic rules. These rules are: spend less than you make, on a personal level, and pay cash for purchases (hence no personal debt). Second, demand the eradication of entitlement spending on every level of government. Third, demand the end of fiat currencies (money that is backed only by a promise of the issuing government).
Should you choose to whine about wanting something you can't afford: too damn bad, nobody should exist to pay your way. Should you choose to whine about the poor and downtrodden: too damn bad for them, either use your own money to support them or let them starve. Should you choose to whine about fiat monies being necessary: too damn bad, there are finite resources in the world, concocting infinite money makes every penny more useless.
You've been stolen from for more than forty years to fund the aspirations of individuals and greed; and Obamatons are so furious that they're willing to do it on an exponential scale to 'spend,' their way out of debt. Bushites are furious that their fearless leader screwed up a war and payoffs to cronies to such a ludicrous degree, but refuse to understand the truth of the matter.
Well, I've probably fallen on deaf, or more appropriately dumb, ears…so how about this: if you have affiliation to either the robber baron Republicans or the socialist Democrats, get the hell out of my country so that it can be fixed.
I would suggest that one of the MOST effective ways to actually get the budget under control would be to Immediately reduce all Government spending including reductions in Personnel, reduction in salaries, and reduction on ALL reimbursed "expenses" by ALL departments in the amount of 5 – 10% for THIS fiscal year and then HOLD those costs for the next 3 years!
And a hearty, "Amen" to that plan!
And how about making Pelosi fly commercial and pay for her own booze parties on the taxpayer's dime?
How about this. Outlaw lobbists. One term and done. ALL politicians have to collect SS, just like us working slobs, and no lifetime pensions or medical coverage for elected officials. ALL politicians have the same medical coverage as the working class. You would see a BIG change in the deficit and the behavior of the "It's owed to ME" policies of the current people in DC. VOTE ALL OF THEM OUT NEXT ELECTION.
I totally wholeheartedly agree !!!
My thoughts exactly! Vote them all OUT. Stop going back and forth between
Reps and Dems………….we need something better and DIFFERENT! The Bush
group was swept out and now the Obama group is not doing much better so
everyone is will swept the Dems out and put the Reps back in. IT REALLY
MAKES NO SENSE. We need a viable THIRD PARTY!
P.S. and I don't mean P A L I N for the third Party Pres, we would be more of a Laughing Stock!
I agree with Ed. Immediately reduce ALL Government spending period, and significantly reduce personnel. As it is too much government and too much waste. And I don't care what party, Democrat or Republican.
Eliminating several agency's and Consolidating others would help, along with eliminating the "Year End Dump" that happens every Aug/Sept.
Gee you mean the Feds lowball deficit projections and highball revenue projections? No.
What do you mean on the road to bankruptcy? We're already there effectively. We're printing bogus $ to buy our own debt our creditors won't buy anymore.
Bernie Madoff is a mere piker compared to the ponzi game the Fed is running.
Why do people try to justify budget problems by pointing fingers at the other political party. The truth is that they both do a terrible job. Our country needs a new political party that actually follows the constitution. The democrats and republicans are controlled by lobbyist and corporations. Until Americans get smart enough to understand this simple fact we will be misled by either party and never really know what is actually going on or who is really influencing the the decisions that our government makes.
Blaming Bush does not solve the current problems. We need to stand together collectively and make a new political party that actually cares more about the citizens than their party.
Watch the movie Animal Farm, it will explain.
Madoff???? Damian, hit the nail right on the head, as we continue to rob from Peter, to pay Paul with our grandchildrens, grandchildrens money. Maybe the administration should hire good old Bernie as a consultant.
the american people are beginning to wake up the piper is hear to collect,but it might be to late.
The corruption is too deep. Radicals are running our country. We are doomed.
Public hanging has a warm sound to it when it comes to banksters and nazi politicians.
Obama's budget also assumes that Cap & Trade will pass, and includes a couple hundred billion in revenue that this is supposed to produce. Unbelievable. We have got to purge the progressives from both parties.
Could someone please tell me which some is included in the budget for interest payments on Government debt?
And which interest rate has been assumed?
And what is actually the total sum, that is the total expenditure in the budget?
I think you all try to blame president Obama for the economic crisis and all measures he has taken to try to bring back United States of America on the track again. All people in the world have to pay a small part of this economic crisis if we want it or not.
I am reading several newspapers and get information via internet and TV and I think you are unfair to your president who try to do the best he can to hinder an economic disaster for the american people.
I think you should try to analyse the situation in a more objective way and that will make the articles more interesting to read too.
Thank you very much
Christer Olsson
the best he can to hinder economic disaster for the american people?
if this is the best he can do he's gotta go……..by the way christer,the whole world is gonna go down…you must work for some skandinavian government… can i get some rose colored glasses from you?
i'll email you the next time i gotta go rescue my yacht broker buddy when his volvo breaks down….
The truth is we have had 40-50 years of out of control spending by both parties. We have destroyed much of our future with this irresponsible activity and will destroy the rest if we don't severely cut spending. Our history has shown that no matter how much we tax we almost always spend more than we make so spending cuts are the key although we will need some tax changes as well.
It will take hard work and sacrifice but we could succeed. Unfortunately I am doubtful that we have enough personal will and responsibility to make it happen.
The keynesian method of "buy now, pay later" has caught up with us. Most of us know how to manage our families finances. Why is it so hard for our president and the democrats to understand that raising taxes will not stimulate the growth of our economy. We have a world economic crisis, but they want to mess with our health care. Clearly, this is not representative government – this is tyranny.
There are three main ways to reduce the country's debt:
1. Tax those who can afford it, to the point where they have to tighten their belts like the rest of us. You can't be afraid of the rich and powerful, or we will all go down the tube.
2. Stamp out lobbying, decisively and once and for all.
3. Control the cost of health care. It is not enough to provide insurance for everyone; rather, it is absolutely necessary to stop drug manufacturers from charging $5 or $10 for a pill that it costs them five or ten cents to manufacture. Also necessary: a cap on the cost of hospital stays, doctors' fees and other health care expenses that are now way out of line.
No, it is Obama now.
He gets the blame for his failed policies. Him and his democrat party. If it was alright to blame Bush when he was president (which the MSM did), then Mr. Obama does not get a pass now. His redistribution of wealth plans for our economy are socialist, and he should be called out on it. Private enterprise and capitalism made this nation great. If Mr. Obama would get out of the way and quite threatening our free enterprise businesses, our country could be on its way to recovery.
It's the American deficit, not 'Obama's'. It started big time with Reagan, the Bushes but not Clinton. If you're honest you'll stop blaming Obama.
You were good right up to the first comma…then you became delusional…so your sayin no Dem ever increased spending? Of course SS, Medicare and Medicade are all bankrupt…
BTW..the only reason Clinton had a fake surplus…accounting tricks..not counting unfunded liabilities.
Google is your friend.
To reduce deficit:
1. Tax the rich, and re-tax them.
2. Price controls on drugs, health care, health insurance, basic necessities.
3. Keep Congress honest: Stop lobbying, punish corruption severely, draconically.
Recently I read the book The Shock Doctrine, The rise of Disaster Capitalism by Naomi Klein.
I asked myself and now ask you if the recente crisis we see worldwide has to be seen as a crisis comparable to the many crisis Naomi Klein has signalled in her book.
Or in other words is the recent crisis the result of the same thinking by the Chicago school of Milton Friedman. What I am really asking is if this crisis has been developed wilfully by the Government of the USA. In my thinking there are rather strong indications.
One of my problems with the ideologically blinded Martin Hutchinson is that I can bet I could go back through all of his writings from during 2000-2008 and never come across a lead remotely like: BUSH DEFICIT BRINGS US CLOSER TO THE BRINK OF NATIONAL BANKRUPTCY. I don't remember something like that, do you? So I think I'm seeing hypocrisy in action, and I discount the information from a hypocritical source.
U.S.A. TO BIG TO FAIL
Nonsense! No developed country is going to go "bankrupt" or actually become insolvent. Such articles are fiction and unnecessary scaremongering. The U.S. will just loose its international standing and have to scale back its operations. Adjustments will have to eventually be made, just not by today's politicans. In addition, the standard of living of the average American will decline, but life will probably go on, unless Bin Laden finds a nuclear weapon and can deploy it on American soil. Absent an all out attack, we can sleep at night.
People in this country always want a simple simon blame game approach to politics. It is alway the other party's fault. Wake up, the Democratic and Republican parties are working for the same corporations who are running the planet. The military industrial complex is running a global empire and killing a lot of people, and guess what, it is kind of expensive. The Health care Pharma Medical tripod is looting the entire population with the Dems and Rupubs approval. And then we have Goldman Sachs, running the planet. How many financial advisors to the president in the last 15 years are former GS employees? The US does not have a democracy, it has a corporate oligarchy. Politicians work for them, not the people. There is no real difference between the Dems and Repubs, just window dressing on emotional issues to polarize people and keep their minds off what is really going on. This has been the largest transfer of wealth in history, and still no one seems to have figured it out. When are people going to run down the halls of Goldman Sachs with pitchforks to help themselves to some of the bonuses. The US going broke, watch what you ask for. Whenever things really get bad, they will conger up a global war to take your mind off past behavior. Some simple solutions, pass the Glass Steagall Act again, deleverage Fractional reserve banking numbers to 3 to 1, tax all financial derivative transactions at 0.25%, not allow the CEO of any company to have more than 10 times the pay of the lowest paid employee, and tax all bonuses at 95%. Of course, any president who even brought up such ideas would be assassinated the next day by the people who are running the show. The whole system is set up for the benefit of the few, at the expense of the many.
The most devastating enemies of capitalism, as it turns out, have come from within.
Both in the USA and here in Australia, de-regulation opened the way for 19thC Capitalism to return.
Needless to say, since human nature has not changed in thousands of years, all the greedy narcissistic CEO's and shysters crawled out of the woodwork to take advantage of the lack of regulation.
And so, the predictions of Karl Marx, that Capitalism would self implode are finally coming true. Only because the regulations which were applied by those who understood that there was nothing wrong with free enterprise provided it was protected from crooks, have all been swept aside.
On a more sinister level, the socialists who fervently believe that whatever they do is justified, (the ends justify the means ) particularly in Australia, are gleeful in that what they set up in the eighties is coming to fruition. Australia is going broke, and living standards are slipping, and the socialists who have run this country since the early seventies, even when not in power, believe that trade with Communist China means we must accept lower living standards.
Prime Minister Hawke(retired) is over the moon about the new 'socialism' that China has developed.
He completely forgets that China is following the original concept that Lenin espoused.
Keep big business going for the State. But strictly under the control of the State.
Whatever Government touches they tend to ruin when they put idealogy before practical governance. Whenever a Government fails to regulate with the protection of free enterprise at heart, in a common sense manner, they also ruin the declicate balance.
There is NO FREE ENTERPRISE IN COMMUNIST CHINA. Why? Because the rule of law, and the common law rights of individuals, does not exist in China. There has to be a balance between the rights of individuals and the excesses of greedy individuals. That conflict is a constant source of calamity. Which is why one of your founding fathers, Jefferson, said, "the price of freedom is eternal vigilance".
How is it that it's Obama's Deficit? It's our Deficit we created by allowing tax cuts and spending to go out of control during the 8 years under Bush. Cheney is quoted during that time,
"Deficits don't matter"
A sane man in an insane world will appear insane…
I can't be the only one in the US that understands it's our fault, not the current president. If so I'm the last man standing…
We need some moderate politicians from both parties in Legislative branch who will use common sense to the benefit of all Americans. To that effect gerrymandering needs to be halted so that incumbents are not continuing to be elected to serve a particular segment of the population.
There are good people from both parties who see the problems but are discounted because the are not party purists. We need some folks with degrees from state universities that had to really work for their education and have common sense, not all these elitist from east and west coast that only want to keep themselves and those like them in power. Look at J P Morgan, the Fed, the SEC and recent cabinet picks. Those people helped to rain distruction on to this country and they are still in power continuing to protect their own interests to our detriment. We need good Americans not Republicans or Democrats. They are equally culpable for the problems we have…think Fannie Mae and Freddie Mac and you think of Dodd and Frank and the Republicans that didn't prevent this from happening when they had power.
Responding to Lydia Bell comments so far so good about your comments,
American voters for the most part are blind to facts and will always remain in a state of self-denial.
Both Political Parties are completely in competent, JFK said people see things as they are and never say why, here are some why.
Why did America create the Industrial revolution in China in 1980?
In addition, cured China unemployment at the expense of the American worker.
Why the politicians not tell the American people that any expansion in manufacturing takes place in low wage country.
Why did America gives incentive to Corporate America to avoid where possible the hiring of American workers, since their wages by third world country level
Is too high.
Why does America want to be the police officer of the world?
Why does America want for the most part foot a defense budget to protect 450 European countries that are richer than America, and has the means to provide for their defense?
Why does America not accept that the two wars were both a mistake, one of which has destroyed Tony Blair politically?
When America wants a change, they should look to Russia that has changed past failed policies, and now growing at the rate of 7% no national debt.
They have now replaced American tourist in St Marcos Sq, in Venice, Italy,
In addition, they have replaced Americans in all up scale Hotels in London and Harrods department store.
One more comment Lydia, I am right behind you, I used my high-powered
Telescope on the shores of the pacific and the Atlantic and could not see any
Foreign army approaching the US.
Defense budget, there are many numbers that are not added to the defense budget they go under a different category, when added the true number will be in the range of one trillion dollars.
Why we now have 36 bases, not increase the number by another twenty more and build another 10 Aircraft carriers, Wow we shall become more secure
After we go bankrupt.
While Rome burns our politicians in the white house, the congress and the senate are enjoying their cup of coffee.
America will change when we finally elect powerful leaders of the likes of FDR or Winton Churchill, Reagan, or Margaret Thatcher. They are not perfect but
They know how to make heads roll.
Politics is the same the world over. ie. to get control of the public purse strings for the benefit of their financial backers
The fact is that Americans want things without having to pay for them. We can't afford the medicare prescription drug benefit, the two wars, the tax cuts, and at the same time balance a budget.
Americans will just have to face facts, and I don't see that happening until it's too late.
We need to rethink the system of central banking. Why not put in place checks and balances. Why not make the banks pay for the privilege of printing US dollars or stop fractional reserve banking. If you really want to know what's going on follow the money trail. Do you think there is even one politician representing the people. Politicians represent the corporations that get them into office. Who are the terrorists you are fighting against, running scared and unthinking, and giving up all you liberties to defeat? Exactly who can you trust to have your best interest at heart? Man always falls victim to his own greed.The emperor has no clothes, the banks and corporations are robbing us blind – legally, with the help of every elected politician. We are all becoming debt slaves because of the system of taxation. So if you do nothing you are still agreeing and falling deeper in to debt slavery, as your news reports to you faithfully on Brad and Angelina. Everything is terribly wrong here and everybody can see it they just won't look because it is that bad.
As a Christian my faith is in God. I will not serve the money mongers or support their phony wars to steal even more from other people. Ignorance and fear is killing everything on the planet. Look carefully they are destroying the food, drugging the oceans, polluting the land and even poking holes in the atmosphere. Who does that and who follows them blindly?
US has to cut back and focus on the fundmaentel and long term interest of the country:
1. Stop the stupid war
State has to protect the interest of all American people as whole.
Islam terrorist group should not be the focus of the nation's defense strategy, even through they killed 3000 Americans. The focus always should be these 2 countries: Russia and China. They are the only protential national threats. The war on terror is a stupid move. It is waste of resource and misplaced focus.
2. Keep consumer alive
The economy goes nowhere if the consumer does not have purchasing power. The state should pass a law that limit how much the government can tax. The combined federal and local income / employment tax should not be over 20% of a middle class family's income.
3. Secure tax revenue.
No exemption on inheritance tax. And the tax rate should not be lower than 50%.
Tax the rich and tax the church!!!
4. Cut military expense.
The state should maintain a defense budget 75% of total defense expense of Chinese and Russian. Giving the fact that the possiblity of full scale war between these 3 states are low in the next 10-20 years, the cut can go even deeper.
5. Cut the welfare.
If a person is not old and not disabled, he or she should only be given money for food and basic living space. If he or she wants better than that they have to work for it.
6. Make the deficit illegal.
Government cannot spend money they don't have on anything, even it means to save lifes.
Obama = Bush
democrats = republicans because they're all on the take.
Almost all accept lobby money to vote against the American public and dumbed down Americans will never see it. Why do you think things have gotten so bad? America will be the first country, in the history of the world, to be lost to greed and greed alone.
It's not about political parties any more. It's about the culture of corruption.
Good Luck America. You're going to need it.
Our political system is broken and as doomed as was the USSR – period .
Wow, What a loaded topic and lots of strong emotional replies. After reading several of them I have to agree with whomever said that BOTH PARTIES are to blame. Have any of you heard of Brooksley Borne? Please watch one of the most fascinating, mostly non-partisan documentaries I've ever watched, called "The Warning". It was put out by FRONTLINE and I think you can watch it for free on line. It's about Derivatives and it's my belief that they are what got us into this mess. And I believe deregulation happened under Reagan but Clinton did nothing to change that, and Greenspan was God under both the Dems and Republicans.
I personally believe we need a 3rd major party.
You Can't vote them out! Too Much Money involved……Term Limits NOW!!!!!!!!!!!
GREED & PUPPETS > GREED #1) Everyone in the USA are Over Paid, Period ! People All want to Live Like the jones… But you can't. * There are the People who have Developed and Built Business to put all of you Greedy people to Work, They deserve to Earn More than you (but not All the Big Bonuses that they give Out to Employees) . Be Happy Just Living with Shelter, Food, and the Pleasures you can Enjoy; After you have Saved for it ! Which in-Fact Leads me to Your so-called Wealth via CREDIT CARDS (cut them up!) . Work and Save for what you want, and you will Not be in Debth ! Remember ! your Parents/Grandparents Owned their Homes and Owed no-one for what they Purchased! * Their Mastake was to Give/Leave you their Hard Earned Wealth & Possession's . GREED #2) Think About it ! About 40 Years Ago Homes were $3 to $5,000, Cars $ 1,500, Shoes $5.00 to $10.00, Sneakers $ $2 to $5.00, Etc. Why ? Because every time you Greedy people want a Raise.. Your Employer Must Raise the Cost of Goods/Services in-Order to Give you that Raise! PUPPETS > Excluding President George Washington, All Later Presidents (PUPPETS) are, and have Been Owned and controled by the Greedy Wealth Barons (so STOP Blaming the puppets!) of Oil, etc. (which if you Think about it; Basically Many Products that we Consume/Use are Derived from Oil) , Plus! Everyone Needs Too many Automobile's in their Family ! It goes on and on. Makes me Sick to Think About it !!! Your All the Blame of GREED !!…. Wake Up America !
Political behavior cannot be improved simply because it is in perfect accord with the obsolete political system which is the basis for that behavior . Furthermore, it appears that the Keynesian economic model is valid only during special recessionary times and is not otherwise generally valid ( ie. otherwise it is generally invalid – inappropriate / anteconomical ) .
i am very much interested to know more
The US is approaching the point of collapse of its economy and its currency similar to that of the Weimer Republic.
Its present political leaders on both sides of the isle are in capable of making the correction,
It is now on the path of self-destruction and that destruction cannot be
Reversed or stopped, since the politicians of both sides of the isle are unable to make the correction by democracy methods.
Let us identify the causes of destruction;
Defense budget no correction can be made on this issue, the flag waivers will oppose any changes, as to threat if there was none perhaps they may create a possible threat from outer space.
Social security and medi care no change could be made any politician that wants to reduce benefits will be destroyed politically.
Trade policy no change any protections method that will stop the export of American jobs, will be opposed by those that enjoy cheap imports,
China and other countries have, with the help of the US government
Won the trade war! China, Mexico and India, have taken US jobs and its tax base. The consequences of "Globalization" are bringing the U. S. to its knees. In addition, to top it off there are no tax revenues from tariffs, or from the millions of previously employed Americans. The Chinese also own a huge part of US. The winners are the emerging markets and Corporate America the losers are America, its workers and middle class.
The new American revolution leader may be to day ten years of age, and has not surfaced, there are many, but one shall become the ultimate leader that will lead the United States from disaster to prosperity,
As history as your guide the new leader will no be one that espouse the virtue of capitalism, for he will be a true socialist, that will tell the rich you have taken to mush and gave very littlie back, now as the new leader I Shall make the correction, and you shall be stripped from your wealth to give the poor, again his supporters are mostly poor and unemployed shall cheer him on and support his agenda.
By historical fact leaders of tyranny do not appease those that oppose his agenda by democratic means, he destroys them by imprisonment in some instance kills them, his agents will be on the path to discover them and when they are found they will be arrested as Hitler and Stalin did, finally his opponent were silenced by fear.
Events as I described above is what has occurred in the past and , there is no reason it could not occur again, this time the event will be in the United States.
Firstly congratulations on a wonderful newsletter., I am in Australia and receive every issue and devour the great info.
From an outsider looking in, it seems that the USA ( like all Democracies ) can't run budget surpluses with so many self interest groups controlling votes. It can be done and we have managed a long line of budget surpluses in Australia in recent times, but it's not easy when the primary role of any Government remains getting elected and then getting re-elected. It sets things up for failure but I am not sure what a better solution is given that the opposite of what I describe is most closely resembling a dictatorship. Maybe a benevolent dictatorship would work but it will never happen of course.
Andy
PropertyNow
Coffs Harbour. NSW.Australia.
Australian real estate
WERE IS THE BASIC PLAN ? FIRST , EVERY BODY NEEDS TO EAT, SECOND IT TAKES FUEL TO GO TO WORK ( IN ORDER TO GROW OR BUILD ANY THING !! ) . I WAS IN A TIRE SHOP, AND THERE WAS A LADY , LOUDLY , COMPLAINING ABOUT DRILLING RIGS , AND THE AFECT ON EVERY THING. I TOLD HER THAT I WAS AMAZED BY HER HIPOCRISY . AND THAT SHE NEEDED TO HURRY AND GET HER PETROLUIM BASED TIRES ON HER , GAS BURNING CAR , AND HER FANCY PETROLIUM BASED CELL PHONE , AND GO COMPLAIN TO THE WORLD SO THEY CAN SHUT DOWN DRILLING !!! BOTTOM LINE , NATURAL RESORCE, MEENS POWER , FOOD , AND SURVIVAL . GOD BLESS THE OIL MAN , I HOPE HE MAKES A LOT OF MONEY SO HE CAN MAKE SURE THE REST OF US CAN DO OUR JOBS. WITHOUT HIM YOU CAN BET WE WONT GO TO THE STORE AND PAY FOR OUR FOOD ! HOW MANY OF YOU OUT THERE CAN REALY RIDE A HORSE , OR KNOW HOW TO GROW A GARDEN … AMERICA , WAKE UP AND REMEMBER WERE YOU COME FROM . RECOGNISE THE BASICS , AND LETS BUILD THIS COUNTRY ON WHAT WORKS !!"" PROUD TO BE AMERICA ""! MADE IN AMERICA.
Superb post however I was wanting to know if you could write a litte more on this topic? I'd be very grateful if you could elaborate a little bit further. Appreciate it!