The Reasons I'm Concerned

Friends and family have asked me over the last 12 months or so just why I'm so convinced that things are on their way to an implosion for America.

Three years ago, I got an uneasy feeling about the economy. It didn't make any sense on the surface at the time. After all, the Dow was over 10k, easy money was to had just for the asking, credit nearly shoved on us in obscene amounts.

That was exactly what bothered me. It took me a while to realize it, but eventually I did. When my mortgage company was willing to offer me what amounted to twice my homes value, and credit card companies were willing to offer me what amounted to my annual salary, I knew in my gut that the collapse was coming.

Then the mortgage industry started collapsing. I immediately moved my 401K out of stocks and into bonds, thinking that regardless how bad it got, bonds would hold. I was wrong. Fitch ratings is downgrading pretty much all state bonds. Federal or Treasury bonds are iffy at best.

Anyhow, then the stock market crashed. Once it crashed, businesses folded, unemployment skyrocketed, (I still think we're being lied to by the Fed about real unemployment numbers), the economy staggered into a deflationary cycle.

As a result, Congress panicked, passed a hugely bloated "Recovery Act", just chock full of every single Congress critters wet dream on spending. (787 Billion) They followed this folly up with the omnibus bill which simply had the rest of their pet projects on spending. (400+ billion)

This was followed by the 3.7 trillion dollar 2009 budget, bringing the deficit (at the time,, trust me, it gets worse) up doubled.

Now we get the 1st quarter numbers on income for the fed-- taxes paid in. They normally collect about 670 billion per quarter. They barely collected 400 billion. Taxes are down simply because the ECONOMY is down. People are out of work, businesses have shuttered their doors.

Now, you ask why this is important. What less revenue does is increase the deficit. After all, the Federal government isn't going to decrease their spending. If anything, they're spending faster and faster.
CBO has revised their estimate on the deficit. It will jump from 10.6 trillion to over 18 trillion,, just on the strength of less revenue.

Now, the president has decided to "reform" credit card companies. Sounds good on the surface, but the nitty gritty is- it protects those in trouble, and punishes those who are good customers.

Huh???

Hmmm, sounds just like whats going on for the last six months, eh?

Now, lets throw in the taxes that are going to go up to pay for Obama care.

Just wait until we taxpayers get the bill for bailing out California, Massachusetts, Michigan, ect, ect ad nauseum, ad infiniteum.


Mark my words- If you are a responsible, law abiding tax payer- you're about to get screwed by Obama & company. I'll be surprised if we ALL don't end up paying 60% of our income in Taxes.