Greece debt was over 120% of GDP when it hit a brick wall. The US debt is over 90% of GDP. While other nations around the world have mountains of debt too the US economy is seen as able to sustain its debt levels and continue to be able to finance more deficit spending. Well it was clear from the G-19 members that the US stands alone in this assumption.
The administration pushed hard for the rest of the world to continue to borrow and spend to assure the global economic recovery is sustained. But tongue and cheek the US has signaled through Timothy Geithner that America won’t be able to take on the burden of carrying the rest of the world on our back. So the world is undergoing tax hikes and spending reduction while we trumpet more stimulus that hasn’t worked already.
The recovery is fragile at best and i do expect a dip coming. The “double dip” we are already teetering on looms and the plan is to borrow our way out of it and flood the market with more of our currency. This is a recipe for disaster. The US Debt Commission is expected to come out with plans in December – and of course after the elections. Politics is driving this whole mess. If you don’t think the banking reform they jammed through is going to hurt us very badly then you don’t know what is in the 2000 pages either.
The prediction is that the US taxes will get hiked for sure. But the problem is that will further hobble private business that is essential to a recovery. Any tax hikes also take money out of corporate pockets and mainstream too. 70% of our economy is consumption so we will all have less money and the tax cost on the financial institutions and business will certainly get passed along to us. The fact is we cannot tax our way out of our debt. Taxing just isn’t enough to pay it back.
HealthCaid, Financial reform and a host of big government programs are crippling us. This all driven by politics and that is just outright a failure for our leaders to do what is right not right for them to get reelected. But that is what is going on and if you see any light in the policies or any pull back on borrowing and spending then please do let me know. Everyone is playing to win the next game come November but i assure you we don’t have our eyes on winning the Super Bowl or World Series.
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G-19 The US Stands Alone
Greece debt was over 120% of GDP when it hit a brick wall. The US debt is over 90% of GDP. While other nations around the world have mountains of debt too the US economy is seen as able to sustain its debt levels and continue to be able to finance more deficit spending. Well it was clear from the G-19 members that the US stands alone in this assumption.
The administration pushed hard for the rest of the world to continue to borrow and spend to assure the global economic recovery is sustained. But tongue and cheek the US has signaled through Timothy Geithner that America won’t be able to take on the burden of carrying the rest of the world on our back. So the world is undergoing tax hikes and spending reduction while we trumpet more stimulus that hasn’t worked already.
The recovery is fragile at best and i do expect a dip coming. The “double dip” we are already teetering on looms and the plan is to borrow our way out of it and flood the market with more of our currency. This is a recipe for disaster. The US Debt Commission is expected to come out with plans in December – and of course after the elections. Politics is driving this whole mess. If you don’t think the banking reform they jammed through is going to hurt us very badly then you don’t know what is in the 2000 pages either.
The prediction is that the US taxes will get hiked for sure. But the problem is that will further hobble private business that is essential to a recovery. Any tax hikes also take money out of corporate pockets and mainstream too. 70% of our economy is consumption so we will all have less money and the tax cost on the financial institutions and business will certainly get passed along to us. The fact is we cannot tax our way out of our debt. Taxing just isn’t enough to pay it back.
HealthCaid, Financial reform and a host of big government programs are crippling us. This all driven by politics and that is just outright a failure for our leaders to do what is right not right for them to get reelected. But that is what is going on and if you see any light in the policies or any pull back on borrowing and spending then please do let me know. Everyone is playing to win the next game come November but i assure you we don’t have our eyes on winning the Super Bowl or World Series.