Getting worried...

Ok I'm not quite panicked yet, but perhaps my anxiety factor is rising. It seems almost as if there is a concerted effort by the US Government as well as some Wall Street "insiders" to paint a more rosy picture than really exists. I believe they are hoping things will turn around, but things aren't.

-Claims that unemployment numbers are improving are a gross fabrication. People continue to loose jobs....very few gaining jobs. Additionally, once someone stops looking for work, gets a part time job (because it is all they can find) or falls off the extended rolls, they aren't counted anymore. Hidden in yesterdays CBO report was a scare little number...2.3 million MORE people will be unemployed. How the heck is that an improvement?


- Claims the stimulus is working....but it isn't.

-Along with the new report from the FDIC on an increase in failing banks and those on the verge of failure, comes the obvious attempt to hide action behind the scenes. Bailing out banks with money that is itself debt money (remember we (the government) are $11.7 trillion in debt already and rising) seems somewhat insane.

So it begs the question....does the US Government and Wall Street have their heads up their fourth point of contact or are they merely stalling and preparing behind the scenes for what seems to be the inevitable economic collapse of the US?

New legislation to kill American Family Farms....

Thanks to Familysecuritymatters.org for the article "Exclusive: Obama’s New Food Act to Seal Sorry State of America’s Farms" by Paul Williams, Ph.D..

Congress in it's infinite wisdom is going forward with the Food Safety and Enhancement Act (H.R. 2749)...skipping most legislative procedures and getting this sucker passed. It sounds spiffy on the surface, but lurking below are some ridiculous requirements on our nations farmers and perhaps anyone who grows food and then sells it. The bill attempts to set up sterile farms...farms free of bacteria. This requires farmers to set aside large areas of land for 'buffer zones', erect huge fences, pay additional fees (read taxes), poison ponds (for sterility) and drain wetlands (because they are so dirty!)....I won't mention the warrant-less searches by federal Ag officials. This will do 2 things (at least).....crush the small farmer to the point of going out of business and drive up the cost of food due to the enormous cost placed on the remaining farms.

It seems as if there is almost a concerted effort by the legislative and executive branches to crush every aspect of American productivity....I find this extremely strange since the government gets it's money from the very businesses and working people it seems to be putting out of business.     When are the people going to wake up?....I suspect when it is too late.                                           

 

Of Deficits and Debt...

The U.S. Government continues to spend out of control. But, what are these words deficit and debt the government keeps tossing around.

Check out the U.S. Debt Clock....it will turn your stomach.

Deficit is the amount of money going out the door verses the amount received in a year (via taxes receipts). This is a short term view of spending. Present U.S. Government Deficit year to date is $965 billion and rising (+$965,000,000,000) at a rate of ~ $600,000 every 10 seconds.

Debt is the amount of money borrowed to pay for something..like using a credit card to by a TV. The problem arises when you don't pay down your credit card and debt accumulates...this is what the U.S. Government is doing. Debt is the accumulation of deficits. The government says it backs its received credit (debt) with the value of American production...in other words the work, goods and services you and I do. Our sweat and labor is the governments bargaining chip.

Presently, the government is in debt $11.39 trillion and rising (+$11,390,000,000,000) at a rate of ~ $1 million every 3 seconds.

The government is banking on 2 things to get out of it's present pickle...a robust recovery in the economy and raising taxes on those making over $200,000 (or $250,000 or $300,000...the number keeps changing) to pay for the debt, BUT there is a big problem, well several. The government is adding new programs that require even more funding. So instead of reining in spending, they are increasing it. This will accelerate the deficit and thus debt. Taxing the only group left with any income to spend in the economy just doesn't seem to smart. So if the 'wealthy' have less money to buy, how exactly is the economy going to get going?

Oh I forgot to mention 70% of the US economy is generated by the U.S. consumer. If we have no money to buy items other than groceries...how exactly is the economy supposed to bounce back? Manufacturing and service sectors will continue to collapse putting more people out of work. Even less revenue will be coming into the government. We are stuck in a vicious circle, and it is only going to get worse.

Call your congress critter and tell them to knock it off. Time to make the tough choices and get out of debt...that really will stimulate the economy.