PRICE FIXING
By Daniel at 13 December, 2009, 8:54 pm
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The government picks up the spending”outlay” slack for its citizens in order to keep the consumer GDP alive. Lets face it … How much lower would home prices be and and how many more jobs would be lost if the US government did not pay out Social Security, Medicare and Unemployment and Food Stamps?
Lets take Unemployment Benefits. I know some Americans who get $1800 per month in just Unemployment Benefits and an extra $400 - $600 per month on Food Stamps! Within one year total US Treasury outlays for Unemployment Benefits have skyrocketed 250%.
You cannot analyze DEBT without at least peaking at “spending” when it comes to government, as well as households.
This nonsense that 31% of Americans own their homes “free and clear”, part of the American Dream con job, needs to be restated. I have a house and a farm on five acres in Hawaii, oceanview, “free and clear” except if I miss one property tax payment! Or one association dues payment! Believe me when I say you can go to any State in the USA and buy a home at auction where the “owner” was booted for a tax default(be it property or income tax), even if they had no mortgage. You are always “paying” rent in America for as long as you live. There is no “free” and there is no “clear”! That is not a “technicality” it is “reality”. The most vulnerable ones are those little old ladies who had their mortgage burning party years ago living on fixed incomes! Fixed incomes only work when government spending and debt is also “fixed”. That hasn’t happened since 1835.
Where do we Americans stand for FY2010? Well, according to the US Treasury on Dec 10th total US DEBT(both marketable and non-marketable)combined with total “outlays” crossed the $11.2TRIL USD mark. That’s roughly $5.6TRIL per month! Where is that mentioned? Don’t take my word for it go over to the US Treasury Daily Statement at the FMS website and click Dec 10, 2009.
If you stick to the usual ‘debt propaganda” the mainstream and the US FED and BLS put out then you arrive at flawed conclusions and not reality. Why do you think the only politically unbiased auditor America had quit the GAO last year? He even went on 60Minutes only to hear the deafening silence of abject apathy that has been emanating from DC since 1913.
“Thus, this interest rate arbitrage is ultimately a net plus for the economy.”
Perhaps the US FED and Barney do not really care about rates being the lowest in history now to help “homeowners” but instead to help US government debt grow at record levels. How long would this “spendy” government and GDP last with a Fed Funds Rate at 17% like the Volcker days?
A book comes to mind … PLANNED CHAOS.
Gloom and doom? Please … IT IS WHAT IT IS!.
- KAIMU BIZ
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