Pay Your Fair Share Americans
April 17th is steadily approaching and many Americans will be sending in their checks to be redistributed and stolen by the federal government. It’s an annual travesty that will only be stopped and improved upon by action and individuals standing up to oppose the great evil. President Barack Obama is heading to Florida where he plans to make a demand for a tax aimed at millionaires and billionaires, a central issue in his campaign for re-election. He will argue that Congress should implement the “Buffett Rule,” a 30% tax on income of more than $1 million.
Fox News did a good job of Debunking the “Buffett Rule.” What the government would save in 10 years of implementing the “Buffett Rule,” the government will spend in the next 5 days.
The Global Debt
Total global debt is over 190 trillion dollars.
To put this into perspective for you, the debt is now more than triple the global GDP
. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States. Here are Fitzwilson’s observations: “As the financial crises began to unfold in late 2008, central banks took massive and monumental steps to try and stabilize the financial system and get economic activity back on track. One could argue that the financial system has been stabilized, but at an enormous cost in the trillions.” What we say is that the trillions of dollars in costs will have an unbearable hangover that will torment the world’s economy for many more years than if the free market would have just been able to correct.
China’s Economy To Slow
Reports are showing that China’s consumption boom is drawing to a close and this is going to have massive repercussions for economies all around the globe. Everything ranging from Australian miners to iPhones are due for a reality check. Being that China is America’s number one client, when China suffers so does America and so does the rest of the world. It will be interesting to see how government officials inject themselves into this problem.
The U.S. Got Downgraded?
Did you hear about the Egan Jones Credit rating agency cutting the U.S. credit level from AA+ to AA last week? Most people were not informed about this because Obama ordered the press not to do its job. We are talking about a blackout from virtually all of major news media. The fact is, the central elite are losing control everyday and their schemes are becoming more apparent to everyone. Although there are going to be many blind faith voters for Obama in the next election, he is still going to have to show at least some positive numbers to be able to make a case for why he deserves a second term. Letting news like the U.S. being downgraded out to the world would be horrible for business.
Gas Prices and Oil
Catalina, an island off the coast of California, sees gas surpass $7.00 per gallon. Skeptics would argue that this is a bubble example of a targeted group that can afford the enormous prices. We tend to believe that this is a foreshadow of what the rest of the country will be seeing in the near future.
On the topic of energy, Iran has stopped its shipment of crude oil to Spain. It will be another shot at the EU, time will only tell if the blockade of oil will be extended to Germany and Italy as well.
Employment in America
enjoys reporting the unemployment rate regardless of how manipulated it might be. The most recent report was at 8.2%. Sounds good from a nominal perspective, but the facts are that more people have given up looking for work. On Friday, the Department of Labor reported that March non-farm payrolls increased by 120,000, falling well short of consensus expectations in excess of 200,000. CrushTheStreet.com
continues to expect a deterioration in observable economic variables, with weakness that emerges gradually and then accelerates toward mid-year. On the payroll front, our present expectation is that April job creation will deteriorate toward zero or negative levels.
Financial advisers are divided about the future of the global economy, according to a survey by Curian Capital. Among respondents, 34% said the economy will soon improve, 32% said the economy is in a long-term crisis and 34% were uncertain about the economy’s direction.
Let’s face it though, demography is destiny, the U.S. economy is in the midst of decades long slowdown. Slower growth in the number of workers tends to hold back gross domestic product and employment. That makes it less likely that the economy will pick up steam at the rate it did in previous recessions. These changes in the labor force “imply that future recessions will be deeper, and will have slower recoveries, than historically has been the case,” according to a paper issued last month by James H. Stock of Harvard University and Mark W. Watson of Princeton University.
Congratulations for being in the know!!!
Visit CrushTheStreet.com for featured videos, news articles, and live metals pricing.
Opt-out of conventional wisdom!!!