The road to insolvency is paved with
red ink. How can the United States become
insolvent? Easy, just add the Obamanomics deficits, as laid out in the President's ten-year plan, to the existing $11 trillion
national debt and it will not be long before the US is unable to meet its financial obligations. Presently, debt held by the Social Security Trust Fund and other governmental agencies is $4.4 trillion, plus the remainder of the debt (owed to citizens or "foreign" owners) is $6.6 trillion. Approximately 50% of US debt is owed to
foreigners, up from 31% in 2000, and this debt will undoubtedly continue to climb. If China and other foreign creditors lose their appetite for US debt, the result will be catastrophic for the dollar…
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In an ironic twist of fate, it may be the fiscally responsible communist Chinese who save capitalist America from its budgetary excesses. They may well have to teach the wayward youngster a lesson in fiscal responsibility by refusing to fund continuing trillion-dollar deficits. Tough love from the Chinese may be the only prescription that rescues America from impending financial doom. The new administration is behaving like a kid in a candy store and it will take a bitter pill from the Chinese to bring them to their senses.
Federal outlays will soar in fiscal 2009 to $4 trillion, or 27.4% of our
$14 trillion GDP, up from $3 trillion or 21% of GDP in 2008, and 20% in 2007. If we take the administration's rosy recovery scenario at face…
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After reading that one percent of the households in New York City, roughly
40,000 people, pay 50% of the income taxes in this city of more than 8 million inhabitants, it made be begin to wonder where we were headed as a nation. This astonishing figure brings home the practical consequences of relying on taxes from a small group of high-earners to fund city, state and national budgets. In the case of New York City, the Mayor can only hope that this small group does not become weary of their burden and move to Connecticut or West Palm Beach. If even only a small percentage does, the financial impact on New York in a recession would be devastating. If that problem isn't enough New York City and State will…
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