Our economy is a house of cards and the tornado is here.
Never mind that the notion of fixing an economic problem brought on by bad debt by piling more debt on top is retarded at best. Never mind that Obama's (not Bush's, he isn't pres. any more) first budget deficit is stated as being 1.75 trillion dollars but that figure relies on a grossly unrealistic rate of growth of 3.2% in the economy making it more likely to be around 3 trillion dollars.
The real problems have yet to become fully evident.
Over 3 trillion dollars of real wealth has evaporated since Obama was elected. That money that has disappeared into the ether could've and would've provided jobs, investment, security, etc. That is now lost. The eat the rich crowd may be crowing now but I think when they realise just how dramatically that will change their own lives they will be singing a different tune. New businesses opening? Nope. Businesses that may have been able to weather this crisis? Nope. Companies keeping their employees on? Nope. That all is just as lost as all that wealth. Sorry to tell the class warfare crowd but poor people do not provide jobs.
Look at college savings accounts. People that thought they had funded their children's educations are literally weeping when they look at those account statements. While I realise that money is part of the 3 trillion in lost wealth I have mentioned, you must also realise that if they want to send their kids to college, that money has to be made up. This means that disposable income will drop dramatically. Less disposable income = less spending,less spending means that this crisis will spiral downward even faster. Whether you like it or not, our economy is fueled by people spending money not the government throwing it out the window. What do you think this will cost?
Look at the pension funds that are backed by our government. Typically, a pension fund will sell bonds and pay interest to those that buy the bonds. The problem here is the rate of return on the money they took in from selling the bonds is now but a fraction of what they are obligated to pay in interest. This digging massive holes in every pension fund out there and the cost of bailing them out is about, eyp you guessed it, a trillion dollars. Not to worry though, these are government backed so Obama will just print more money to cover it right???
To read an in depth article on this click this link;
http://www.bloomberg.com/apps/news?pid=20601109&sid=alwTE0Z5.1EA&refer=home
Do you still think pork laden spending is going to fix this crisis??????
Let me put something in perspective for you; A million seconds is just over 11 days. A trillion seconds is about 32,000 years. Keep that in mind as you listen to our illustrious leader and his minions as they bandy about spending trillions of dollars.
1 comment:
Good stuff. Why don't we just finish the game quickly. As in possession is now 10/10ths of the law. Which means wherever your at and whatever you have you get to keep. If you have a house and owe on it suddenly its paid for because you have possession.
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