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The feds on both sides are doing everything they can to give Americans the feeling of a recovering.
Bailed out auto companies
Bailed out banks
Interest rates at historic lows
Printing money
Increase in entitlement Programs
Possible and probable Q3 (printing more money)
Q3 will prop the stock market.
Reckless economic policies has put us in a debt bubble that will pop, just like the housing market bubble popped, just like the .com bubble years ago, just like the student loan bubble of today.
We take in 2T year in tax revenue but Washington spends about 3.5 T. Every 4 out of 10 dollars the government spends is borrowed money. About 36%of this debt is short term debt which means that every year Washington has to roll this debt into new loans with higher interest rates. Washington is incapable of doing anything about the spending and entitlement issue. Washington invests our money poorly (solyndra, electric cars, etc) and these investments are not creating jobs for Americans.
The percentage of US debt held by foreign investors has almost doubled. The US owes and relies on powerful and communist countries like China. That is scary.
The Obama and feds have to boost revenue and are targeting the wealthy because its politically correct and the easiest road to take but taxing the rich will not generate enough revenue to pay down debt and Obama is still spending. Obama and the Feds will have to increase taxes on the middle class to increase tax revenue.
Higher taxation will cause even further economic decline. The working class will get less money in their paycheck and they will spend less money. Businesses will also be hurt due to less demand for their product and higher taxation. Businesses will also have to fire more employees. Seniors who live off investment income will have a harder time making ends meet and people will have to work longer. And it still will not be enough.
Modest interest rate hikes are coming in the near future. Higher interest rates will also hit the stock market, lower profit margins, lower dividends. higher unemployment. Housing prices will drop further in in value.
Some will scream that I am a doomer, well maybe so. If I am wrong, well I hope I am. If I am right, I wonder what everyday working Americans can do to protect themselves. PS, I will NOT be voting for Obama so don't bother. Obama just wants to spend more money, he will make it worse and it will not work. I am talking about on a personal level.
The working classes may get more money in their pay check, numerically speaking, but it will be of lesser value.
We are told we have economic growth, and that out houses are going up in value, the truth is that the money has been devalued.
That is inflation and I agree. The increase will be minimal at first but I think it will go way up eventually. I don't know why you say paychecks will increase? I see more people losing their jobs and if you are lucky and keep your job you will not get raises.
Regardless, if that is the case, paychecks even if more money, will actually buy less, retirement the same, welfare checks and food stamps, even if they get more in dollar amount will be less valuable and they will still buy less.
That is inflation and I agree. The increase will be minimal at first but I think it will go way up eventually. I don't know why you say paychecks will increase? I see more people losing their jobs and if you are lucky and keep your job you will not get raises.
Regardless, if that is the case, paychecks even if more money, will actually buy less, retirement the same, welfare checks and food stamps, even if they get more in dollar amount will be less valuable and they will still buy less.
I'm agreeing with you, I was just giving another way to look at it. The reason for the increase, is to fool the workforce into believing they are getting pay increases, while still lowering the real value of the money being given.
I agree, inflation not deflation and the people who are expect to get more will get fooled and they will not be better off and why they will stay poor as long as they continue to depend on other people to pay their way.
Anyway, those of us who are NOT saps on the economy should really think about how we are going to get through this. Myself, try to bleed a rock lol. Its pretty much all I can do for now but know there has to be something better because inflation will punish savers too.
We are basically doing what the Chinese have een doing all along to gain a competitive edge... Subsidizing the economy. An environmental where profits are not a requirement for viability. And people wonder why I suggest China has been a cancer inflicted upon the global economy...
At any rate, all this "free money" is going to have the same effect as it does with welfare recipients... It's going to create a climate of dependency. The only problem is their will be no one left to keep feeding into the system.
At any rate, all this "free money" is going to have the same effect as it does with welfare recipients... It's going to create a climate of dependency. The only problem is their will be no one left to keep feeding into the system.
With no one left to feed the system,... what will the poor do
Anyway, I don't know, I am not spending now because I do know taxes are going higher.
How about reducing the amount we give in foreign aid? Our own country could use the money at this point. Why do we still give out so much to others?
Another question I have is where did all the money we threw at the space program go?
How about reducing the amount we give in foreign aid? Our own country could use the money at this point. Why do we still give out so much to others?
Another question I have is where did all the money we threw at the space program go?
What you are talking about is spit in the ocean. Serious debt reduction means some serious pain.
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