by Charles Hugh-Smith of OfTwoMinds blog,
Raising taxes is the “solution.” Too bad incomes are declining. What will raising taxes do to household savings, spending and the economy?
We all know cutting Federal spending is politically impossible, so that leaves raising taxes as the only “solution” to the “fiscal cliff.”
Since most income tax revenues flow from household income, let’s look at some charts of the workforce and household income:
As a percentage of the [...]
‘U.S. Spends More Per Person than Portugal, Italy, Greece, or Spain’
“According to the chart, the U.S. spends $20,000 per person, while Italy spends $16,900, Spain $13,100, Greece $12,500, and Portugal $10,200.
These dollar amounts “Includes spending from federal, state, and local government,” according to a note on the chart. “2011 general government expenditures per person, in nominal U.S. dollars.”
The chart is based on numbers from the World Economic Outlook produced by [...]
The Republican Senate Budget Committee will release this new chart later today, showing that the “U.S. Spends More Per Person Than Portugal, Italy, Greece, Or Spain.”
According to the chart, the U.S. spends $20,000 per person, while Italy spends $16,900, Spain $13,100, Greece $12,500, and Portugal $10,200.
These dollar amounts “Includes spending from federal, state, and local government,” according to a note on the chart. “2011 general government expenditures per person, in [...]
With volatility in markets globally, today Michael Pento, of Pento Portfolio Strategies, continues to stress that investors should accumulate gold. When asked about the minutes released today from the FOMC meeting and his thoughts on the new stimulus being proposed, Pento responded, “Keynesians keep telling Americans they need to spend more and now is the time to increase the amount of government expenditures to rescue the economy, [...]
Speaking with UK-based financial magazine, Money Week, famed Swiss investment manager Marc Faber said America needs to experience “a devastating crisis” before real growth and jobs can be created.
Foretelling the inevitable burst in debt several years before the collapse of Bear Stearns, Faber’s has gained a reputation as someone who is able to spot the effects of years of mal-investment within the U.S. (and globally), [...]
by Charles Hugh Smith form Of Two Minds
Japan’s Perpetual Motion Debt Machine
Perpetual motion is impossible, but Japan has managed the illusion of perpetual debt for 20 years.
Perpetual motion–a machine which produces more than it consumes indefinitely, without any visible energy source–is impossible. So too is an economy which consumes more than it produces and fills the gap with debt. Yet Japan has maintained the illusion of a perpetual motion debt [...]
There wasn’t a recession, is not a recession, and may not be a recession in this area due to the huge government expenditures. Statistics only tell so much. When I drive around here and talk with people, they are mostly ignorant of the suffering the rest of the nation is going through. They fail to understand that nearly all of their jobs are ultimately due to the government and therefore [...]