Federal spending is approx. $3.7 trillion, the deficit this year alone is projected at $1.4 trillion - and the politicians are squabbling over spending cuts amounting to $33-40 billion; that's 1% of spending and 2.9% of the deficit. You gotta be joking, right?
Obviously they are not, so I must conclude that their heads are so deep into the sand that they are in danger of being swallowed whole into their self-made political sand-trap. If they call this leadership on a global scale then I suggest we call in the Greeks...
You Call This Global Leadership?
Interesting - 1%. Because indeed, this has nothing to do with fiscal responsibility, but pushing the right-wing agenda:
ReplyDeletehttp://www.nytimes.com/2011/04/08/opinion/08fri1.html?src=me&ref=general
RW Agenda? Nope. Its global survival time! FIRE* has badly damaged building. Building in imminent state of collapse. Building must be shored up. Call in the politicians. Building is shored up (QE or something like that!). Engineers would use jacks - but you get the idea!
ReplyDeleteNext. Call in the controlled demolition experts. Brick-by-brick job. "Move along folks, nothing to see here."
*Finance-Insurance-Real-Estate
Brian.
Also the longuer they wait the more future income will be needed to be directed to downpaying this debt.
ReplyDeleteBecause 2012 is approaching and politicians feel the need to be popular, they just keep spending to keep the crowds happy.
But every day that passes, 5 billion is added to the debt. That's like 1 big ass company going bust EVERY DAY. And yet nobody cares!
Every day, the governement goes 15$ in debt per citizen and has been doing so for 2 years. 15$ per citizen isn't much, but if you multiply it to 260 working days that's 3900$ PER CITIZEN, EACH YEAR.
A family of 4 would represent 15600$ in debt PER YEAR. I wonder how many people save that per year, and just imagine how the government is going to downpay that by collecting taxes. This will cause stresses beyond belief for the economy if we'll even have one left in 3 years if this continues.
The way I see it: The time to do something about it is over. Greed has destroyed our country and those who filled their pockets will be long gone abroad when the shitstorm hits and the dollar is a synonime for faillure.
Interesting news.
ReplyDeletehttp://www.bbc.co.uk/news/business-13029210
JVP says:
ReplyDelete"But every day that passes, 5 billion is added to the debt. That's like 1 big ass company going bust EVERY DAY. And yet nobody cares!"
No, the elite are beginning to notice that there is a massive finanical problem. The near catastrophic failure of the entire global financial system 2008 did get their attention.
It's going to take a few years for them to figure out what they are going to do about it.
They may choose to do nothing. In which case, the soverign debt markets will experience a very interesting point of recognition in which we will experience a massive disclocation in said markets.
Ideally, they will chose to actually solve the problem.