Government Expenditures | InvestmentWatch

About Raising Taxes As The “Solution” To The Fiscal

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 [...]

If people think Greece is NOT in our future, then this is for you:

‘U.S. Spends More Per Person than Portugal, Italy, Greece, or Spain’
http://www.weeklystandard.com/blogs/us-spends-more-person-portugal-italy-greece-or-spain_645031.html

“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 [...]

‘U.S. Spends More Per Person than Portugal, Italy, Greece, or Spain’

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 [...]

Michael Pento – Gold’s Been The Hedge for Thousands of Years

kingworldnews.com

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, [...]

House to vote next week on $2.4 trillion debt ceiling increase, matching spending cuts

The U.S. House plans a vote next week on a measure that would raise the government’s debt limit by $2.4 trillion, cut spending, cap government expenditures and propose a balanced-budget constitutional amendment, Republican Representatives Sean Duffy and Billy Long said.

Duffy, of Wisconsin, and Long, of Missouri, described discussions in a closed-door meeting of House Republicans today on Capitol Hill. Republican leaders are scheduled to hold a news conference this morning.

President [...]

Don’t Trust the U.S. Government, says Marc Faber

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), [...]

Do you know the difference between Medicare and Medicaid?

What’s the difference between Medicare and Medicaid?

Medicare is a health insurance program managed by the U.S. government for people 65 or older and for younger people with certain disabilities. More than 47 million people are covered by Medicare. Medicaid is a joint federal-state health program for certain categories of people with lower incomes such as children, pregnant women and those with disabilities. More than [...]

President will deliver speech to nation

AFP ©

WASHINGTON (AFP) – Aides say President Barack Obama will lay out plans to reduce the soaring US budget deficit on Wednesday, setting the stage for a major battle that could define his reelection campaign.

Washington is still regrouping from the political jousting that led to the near shutdown of the federal government at the weekend, but looming on the horizon are even bigger battles over [...]

Japan’s Perpetual Motion Debt Machine: Nine Years Later, Nothing Has Changed

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 [...]

Observation of a Crisis

by TechGuy

Consider the effects of a economic crisis on the global energy complex. Lets suppose that in the not too distant future the globe enters a world wide depression with the collapse of the US, Asian and European economies. Factories shutdown, raw material shipments collapse causing mines and other industrial material production to collapse. The oil and gas companies have constant demand to replace parts, and to drill new wells [...]

Re. Raise Social Security Retirement Age to 70

Cutting Social Security benefits without also cutting other federal spending is ill-advised. Raising normal and early retirement age threshholds must be part of an integrated plan for sustainable fiscal policy and a reduction in the size of government. The House minority leader, John Boehner, is to be commended for admitting the country is broke. Better yet, he should admit that defense outlays and other expenditures disproportionately beneficial to Republican constituencies [...]

In Bernanke’s prepared presentation at the beginning, we see him conclude with this.

quote

Among the primary forces putting upward pressure on the deficit is the aging of the U.S. population, as the number of persons expected to be working and paying taxes into various programs is rising more slowly than the number of persons projected to receive benefits. Notably, this year about 5 individuals are between the ages of 20 and 64 for each person aged 65 or older. By the time most [...]

As a resident of the DC area, People here don’t get it.

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 [...]

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