Here's an analysis of our ecomomic situation from Ty Andros. The highpoints of his article are:
(1) The TIC’s data (treasury flow of foreign funds data) revealed that foreign buyers of US treasuries and agency bonds have just gone negative to the tune of approximately $149 BILLION signaling the growing rejection of US debt offerings.
(2) The spending excesses of the current Congress and administration in Washington DC are dwarfing any seen in the recent past. The federal government’s share of the GDP is poised to explode from approximately 21% to over 28% in less than a year.
(3) Incomes and tax receipts are plummeting, so the percentage of the deficits should rise, RELENTLESSLY. Of course, this does not include states and municipalities who are RAISING taxes and fees in draconian proportions to fund budgets created during the credit bubble; a double whammy to the incomes of the private sector. Growth WILL NOT resume in the US under these conditions. The thought that the US can grow 3% next year while government takes an additional 10% of GDP is wishful thinking and media spin for the masses.
(4) Next year, the stimulus bill increases the size of government agencies by an incredible 80% and adds the new spending to the BASELINE budgets.
Our lives are about to descend into hell and become tortured by overpaid, “brain dead” bureaucrats with virtually unlimited budgets to impose their wills and absurd ideas about what is best for you as defined by government. Do you really believe they can come up with useful things to be done with these gargantuan increases in their size? So the size of government is set to INCREASE in the United States by 88% in one year. This is capital destruction and misallocation of resources on an epic scale.
These government agencies will descend like locusts on their respective parts of the private sector and the result will be the same: barren fields and destroyed economic harvests. As former President Ronald Reagan once quipped “The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help.'” We are all about to get a lesson in the meaning of his comment.
The government is out of control! It's time to stand up and remind the politicians they work for US. Everyone please find you local Tax Day Tea Party!
ReplyDeleteWe neeed a lot more than Tea Parties. We MUST DEMAND they stop this spending now. Once this is all in place, it will be too late to undo it.
ReplyDeleteI agree! I know that more has to be done but if enough people come to the Tea Parties then hopefully politicians will start to pay attention. We have to start somewhere.
ReplyDeleteWishful thinking....
ReplyDeleteThe enormous spending package passed earlier by this administration was just the beginning.
Pelosi, Boxer and Finstein all had overwhelmingly negative responses in terms of Emails and phone calls to vote no on the "Stimulork" package that was snuck through in ONE day without anyone reading or discussing the plan. IIRC it was around 98% no votes from the people. You know how that turned out.
Tea parties are a nice thought, but do they care anymore? Me thinkith NO!