Recovery? How About 'Relapse'?

[Cold Highway]

Rebound? In the first quarter of 2010, private business paychecks shrank to new lows, representing their smallest share of personal income in US history, while government-provided benefits (social security, unemployment, food stamps, etc.) rose to record highs.

With private sector jobs being lost, incomes declining and tax bases shrinking, the increases in government spending were both unsustainable and destructive. More was being spent by the government than earned by the private sector. Not only were taxes not covering expenses, impoverished states with insufficient cash on hand to meet obligations were holding back tax refund checks!

So who with a straight face can say that when Government spends more than people are making as a collective as a good thing?

Recovery? How About 'Relapse'? by Gerald Celente

 

[Johnny]

When I saw the title I thought you were posting about Eminem's last two albums lol.

They need to start cutting the POTUS' and Congressmen's pay. They need to stop these wars and start ending this military empire around the world.

Foreign policy and politicians are some of the biggest wastes of money and the costs are sky high.

Spending needs to be cut somewhere.

 

[MaggieD]

So who with a straight face can say that when Government spends more than people are making as a collective as a good thing?

Recovery? How About 'Relapse'? by Gerald Celente

I can. Families do it--while being fiscally responsible. There's no reason government can't do it as well. The way our government is doing it, though, is unsustainable. We have a national debt we never pay down. We only create more. It's not much different than a home equity loan that requires a payment of interest-only...never paying down the principle. Look what that creative financing did to our housing market. It will, eventually, do the same thing to the US. We aren't tooooo bad off now. Our national debt is about 35% or so of our annual income (taxes and all revenue the Fed gets). If a family was trying to borrow money to buy a house that put their debt/equity ratio at 35%, it would certainly raise eyebrows and the interest rate. Too high.