Posts Tagged ‘National Debt’

February was not kind to Obama and his administration. His spending continues to set records.

Debt

The CBO has projected that the government deficit for February 2012 will be $229 billion, making the FY2012 deficit already more than half a trillion dollars.  This is the highest monthly budget deficit in history.

  • Gas prices highest in history for this time of year.
  • Debt highest in history.
  • Lowest growth rate.
  • Regulations that are choking financial institutions, and small business.
  • Freedoms eroding.

What’s your Debt Burden?

The following tables are provided by the Tax Foundation with these assumptions.

Let’s start with the top 1% of taxpayers.

  • The top 1% makes $345,000 or more of adjusted gross income in a year.
  • The top 1% pay 37% of federal income taxes, so let’s assume they’ll pay 37% of the debt.
  • That means that each top filer in the top 1% is responsible for four million dollars of the debt.
  • And if we’re going to pay it off in 15 years, with no interest, then we would require $22,000 per month from those taxpayers after they have paid their current tax burden.
  • Does anyone think we can raise taxes by $22,000 a month on this group of taxpayers and have them survive that level of confiscation? Of course not. They would be wiped out.
  • The top 1%, if you combined all their assets it would be equivalent to $1.5 Trillion dollars. With a deficit now in excess of $15 Trillion, do you see how ludicrous this administration states they need to pay their fair share. You could wipe them out, not to mention their spending, their companies that employ individuals jobs. All for not even 10% of the total debt in this country?

Paying the debt is going to cost real money, and it’s going to have to come out of real pockets. Already the bottom 50% in this country only pay 1% of the tax burden.

Tax Burden

Tax Burden

Tax Burden

Where do we go from here? Is the United States the next Greece?

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For the first time in American History we will surpass $15 Trillion in our National Debt today! That basically equals 100% of our Gross Domestic Product. In the book “This Time is Different” by Reinhart and Rogoff, once a country reaches 90% of GDP, buckle your seat belt, well we blew by that number.

Forget all the pundits who keep saying it will affect our children and grandchildren. No one is talking about how the debt is affecting all of us today. The debt was $10.626 trillion on the day Mr. Obama took office. We are in another depression like the 30’s, and he doesn’t have any solutions.

Here’s a video of what a Trillion Dollars looks like.

While this President states that America is a lazy country, and then goes off to play a round of golf in Hawaii. Where’s the sense of urgency in creating Jobs.

The Super Committee is a joke…another crisis deadline looms on November 23rd to come up with cuts the day before Thanksgiving. Wonder what the Pilgrims would think. If the Super Committee cannot agree, cuts will go into effect January 2013 after the elections. Exactly how do they define cuts again??? Oh…a 5% increase is baked into the budget every year, so if we only allow a 3% increase that’s considered a cut. That’s lunacy.

Tennessee Ernie Ford would be proud to hear his song being played.

Sixteen Tons of Debt…

You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don’t you call me ’cause I can’t go
I owe my soul to the company store

Government Stimulus

Government Stimulus

It was just last May that the consensus was that second-quarter GDP would be 3.3%. That had been revised down to 2.7%, but the number came in at 1.3%.

  • Normally, at this time in a recovery we are growing at close to 3 times that number, or 3.6%. Double Dip?

Government stimulus is not creating jobs. Printing money, spending money is not going to do it. If anything, the government interference to the economy is destroying jobs. Remember Obama promised that we would not have unemployment above 8% if we passed this stimulus bill? We are 9%+, and that doesn’t count the ones who are not reporting.

The program  created or saved just under 2.4 million private or public jobs.  That amounts to a cost to taxpayers of $278,000 per job. Now with the average wage in this country around $40,000…you do the math. How about just giving us a check? Where did all the money go?

White House’s Council of Economic Advisors reports that, as of two quarters ago, the “stimulus” had added or saved just under 2.7 million jobs — or 288,000 more than it has now.  In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs.”

  • Too much money spent on something that did not work, there is a pattern here.  And we still have to pay back the money!

At the end of 2008, when President Obama was about to take office, the national debt was $9.986 trillion.  The national debt is now $14,467 trillion and climbing.  We are heading for the cliff, DOW OFF 513 points today. Projections are for almost $17 Trillion by end of next fiscal year.

  • Obama will have almost doubled the entire national debt of this country in 4 years versus the previous 232 years.

Let’s bring back Cash for Clunkers and give everybody $3500-$4500 again. Let’s continue to spend and print more money. Let’s continue to dig a deeper hole. That seems to be the current day philosophy. Maybe that’s explains why this administration only has 8% of it’s staff with any business knowledge. The lowest on record for a President’s administration in over 50 years.

“You cannot spend your way out of recession or borrow your way out of debt.”
-Daniel Hannan