Sticker Shock....

The Obama administration has just upticked it's 10 yr deficit projection (the amount more the government spends than takes in)
from a staggering $7.1 trillion to a more digestible $9.1 trillion *vomits*. But at least they will modify their projection for this year down from $1.84 trillion to $1.58 trillion.....by removing $250 billion set aside for banks (no idea why that isn't included..maybe it makes him feel better.

Maybe he wants the US to default....why is anyone supporting him?

Anti- U.S. business President continues his quest....

President Obama seems intent on crushing U.S. businesses and manufacturing sector via U.S. Taxpayer dollars/debt, hoisted on terrible plans and bailouts. Lets look at some of the spiffy ideas he (and Congress) have going...

- Billions of U.S. Taxpayer dollars for offshore drilling...in Brazil!....he blocked offshore drilling in the U.S.

-Cash for Clunkers....$3 billion going to mostly foreign made cars (UAW...you suckers!)

-Promised millions of "green jobs" yet a study in Spain shows a loss of 2 jobs for every 1 new green job. (SEIU...you suckers!)

-Cap and trade will crush small businesses and employment. (SEIU, UAW, UWUA, UMW, USW....all suckers for supporting dems and obama...just watch your jobs and pay shrink). This interactive map helps..press play and watch what happens 2008-2009 specifically in NY, CA, and FL...states with huge social programs.


Not the best job of overlaying the 2 maps but I did find the comparison interesting.

-Social Security and Medicare are disasterous single payer systems that already are crushing the US taxpayer and placing this country in huge debt. Congress and the administration want to add another massive complex system without fixing the first 2?!...that get's a huge WTF?!!!

-millions upon millions of dollars in pork projects, free money with no strings attached...the list just goes on....it's as if the administration and congress want to bankrupt the country.

We already have single payer government systems...

Medicare , the government run single payer medical plan with 40 million subscribers and Social Security, the government run single payer (retirement?) plan. Both programs are a fiscal disaster with a combined $107 TRILLION (that's $107,000,000,000,000) in unfunded liabilities; 7 times the national GDP and almost 10 times the national debt. It is projected in 8 yrs Medicare will be bankrupt (technically it already is since the present federal debt of $11.6 trillion exceeds 'money in the bank').

Read the eye popping article HERE.


And people wonder why I don't want another government run program.....geee let me think....

Stimulus wearing off....(China that is).

A great indicator of future markets as well as production comes from the Baltic Dry Index (BDI) which is considered a leading economic indicator. The BDI basically helps track shipping most notably raw materials that go into production of goods. As the BDI goes up that means more companies are making more products due to an increased demand. If it goes down that means production is slowing.

The BDI grew steadily from 2nd Qtr. 2002 to 2nd Qtr 2008 when the economy tanked. It reached a low 4th Qtr 2008 not seen in over a decade. At this time stimulus money, most notably from the Chinese government began to take hold. The Chinese pumped money directly into infrastructure projects (over 60%) versus the US pumping it into pork projects with no production value. This caused a demand for raw materials (thus increase in production) over the last few months with the BDI rising to 2006-2007 levels. Here comes the catch.....once the stimulus was burned through the hope was the economies around the world would have picked up....they haven't. The BDI has slid some 35% since it's high in June and appears to continue this loss.

Here is what worries me...China is the largest holder of US debt. If things get tough for China, who do you think they are going to want money from?...the countries that owe them. If Congress and the President continue to try to bury us in debt, we will either have to default or pay up....since we are already $11.6 trillion dollars in debt...how exactly are we going to do that? The legislative and executive branches are dooming us to economic collapse.

Is anyone awake out there?

Another auto bailout...new $2.4 billion on top of the new $2 Billion for Clunker cash...

Hey peoples...wake the f$ck up....another bailout!!!!!! After over $130 billion plus for the auto industry..I have no idea because there are so many bailouts.

Cash for Clunkers tanked in 5 days at $1 billion...wow amazing government management...amazing. Then another $2 billion to bailout the bailout...plus another $2.4 billion the Prez took with him to bribe workers today at an RV plant (now there is a green industry...they get about 13 miles to the gallon and weigh twice as much as a car...cash for RV's next?)...he has to bribe workers to get support...oh yea ACORN does that..never mind....

Hey American union workers....you are being suckered like no ones business...how much is your pride worth?...you are screwing everyone else.....gain some fortitude....be an American instead of a communist leach!!!!!

IT'S TAXPAYER MONEY>>>OUR MONEY!!!!!!!!!!!!! Wake the F up America!!!!!!!!!!!

U.S. Government continuing down the debt road....

Next week the Treasury will issue a record $75 Billion in new notes and bonds (new debt). The US Government continues to play a shell game with it's debt by issuing new notes and bonds to pay off maturing debt and raise more cash. The problem is these new notes and bonds are debt. One who buys notes and bonds is lending the government money for a certain amount of time. So the government is borrowing new money to pay off old debt. Does no one see a problem with this?

This coupled with the expansion of Cash for Clunkers to now a $3 billion dollar bailout of the auto industry (after already pumping $10's of billions), mostly foreign made..(AFL/CIO you suckers!), defaults on refinanced mortgages as high as 45% , commercial property morgage failures , and continued job losses (during a typical hiring season) bodes for another mounting disaster.

People are grasping for anything positive in an attempt to fake out the consumer and get them spending again. Unfortunately, all that is going on right now is the effects from the injection of debt laden cash (remember the US Government is $11.6 trillion in debt with a combined $55+ trillion public/private debt). Everyone hopes (gambles) that the economy will recover sooner rather than later. Unfortunately, projections have US debt exceeding the GDP in 2 years (this is with a White House projected GROWTH of GDP by 2.4-4%...presently it is contracting). In otherwords...the government could seize ALL money/product made in the US in a year and still be in debt.

At present rates of unemployment, reduction of productivity and heavy debt merely being re-named/re-financed and repackaged I worry we are in for a nasty surprise come fall/winter.

UPDATE: Elizabeth MacDonald at Fox Business is doing a 3 part series on the commercial real estate looming disaster. She explains the situation far better than I could.

Deficit continues....

Today the U.S. Deficit (more money spent than taking in) reached over 1 trillion dollars ($1,000,000,000,000).

"The US budget deficit reached more than one trillion dollars for the current fiscal year in June as the government wrestled with a prolonged recession, official data showed Monday.

Nine months into the 2009 fiscal year that ends September 30, the budget deficit widened by 94.316 billion dollars in June to 1.086 trillion dollars, according to the Treasury's monthly statement of receipts and outlays."

Complete article HERE.

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.