6 Months into Fiscal 2013 and Debt contines to Explode

The Federal Government continues to run up deficits.  As we approach the halfway point in Fiscal Year 2013 (October through September) the US has increased its debt by nearly 700 Billion Dollars.  Congratulations to the President and Congress who are doing an exceptional job.  Based on the current run rate the National Debt will increase by nearly 1.4 Trillion Dollars in Fiscal 2013.   

Your Kids are Screwed

A bill has been introduced in the House which if passed means any 6 year old in the future will have their retirement age set at 70.  Don't believe me see the link below.

http://www.govtrack.us/congress/bills/113/hr1160#overview 

Social Security is in Bigger Trouble than most Realize

The chart below shows my projections based on when the Social Security Trust Fund will go broke.  I'm assuming Receipts will increase by 2% a year while Expenditures will rise by 3% a year.  Meanwhile keep in mind by the end of 2015 the Disability Trust Fund will be broke.  The CBO projects the Disability Trust Fund will run up a deficit of nearly 1 Trillion Dollars by 2023 which means it will have to be funded by something.  Recently Stephan Goss, the chief actuary for Social Security said the best way to fund the Disability Fund was to raid the Social Security Trust Fund (SSTF).  If they raid the SSTF for 100 Billion starting in 2016 by the end of 2022 (point A) the SSTF will be broke according to my estimates.

   

Obama and Boehner Live in Fantasy Land

Last week both Obama and Boehner said the US doesn't have a Debt Problem.  These two are complete liars.  Since Obama has been in office the National Debt has increased by nearly "7" Trillion Dollars.  By the time Obama leaves office it will likely exceed 10 Trillion.

 

Cyprus goes Full Retard

Folks,

You better start waking up to what is beginning to develop in Europe.  Last night the IMF forced Cyprus to charge people with deposits in their banks a one time fee.

Cyprus will impose a levy of 6.75% on deposits of less than 100,000 Euros and 9.9% above 100,000 Euros. The measures will raise 5.8 billion euros, according to Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers.

So just think some day you wake up and all of a sudden the US Government will force the banks to charge a one time fee ranging between 6.75% and 9.9% on all deposits.  In addition they will not allow you to take money out of the bank before it's implemented either.  If you don't think that can happen here you are mistaken especially if the US continues to pile on debt. 

Obama adds 200 Billion to Debt in February

After having a slight increase in net revenues for January...Obama added just over 200 Billion in new Debt for February.  This is the 4th largest monthly increase in debt with all of them coming under his leadership. 

 

Housing Recovery is a Mirage

Now we know the real reason there is a so called housing recovery.  Hedge Funds and Private Equity Firms have been buying substantial amounts of properties so they can rent them out.

See article at Zerohedge

Obama is Clueless

I'm sorry but this guy is living in another world.  We are nearing a 17 Trillion Dollar Deficit and all he care about is the economy which is going to collapse regardless of what he does.  The Hill had a direct quote from the President which said "his priority is to prevent an economic slowdown and not to produce a 10-year balanced budget during a closed-door meeting Wednesday with House Republicans". 

Fitch, Moody's and S&P should be Ashamed

These three ratings agencies are a complete joke.  Back in the Summer of 2011 they warned they would downgrade the US if no progress had been made on deficit reduction.  Here we are in March of 2013 and nothing has been done to reduce spending.  The Sequester is a complete joke and reduces the 2013 budget by only 42 billion.  In the end I doubt it will even be that much.      

Is Obama on Time with Anything?

By law the President was supposed to issue his budget for 2014 Budget by Feb 2.  However it was then supposed to be presented to Congress by early March.  Now we find out it won't be presented until some time in early April.  With another Continuing Resolution likely to be agreed too by March 27th this means there will be no actual budget for 2013 which is the 4th year in a row.  The big question is will there be an approved budget for 2014?  Since the President is never on time with anything maybe the rest of us should join him and be late for everything as well.

The Bailout America Plan

This was taken from the site at Amateur-Investors.Com Since nobody in Congress, the President or anyone else for that matter has a plan to really help the American People I would propose the following plan. Trillions of Dollars has been used to bailout the Banks but nothing is being done to help people who are underwater in their homes or are in substantial debt.  To be fair a plan should be implemented that helps everyone not just those who are underwater or in substantial debt.  I would propose a plan that includes  the following: 1. If a homeowner is underwater let the loan be refinanced at fair value with a 30 Year Fixed Rate not to exceed 4%. 2. Allow every homeowner who isn't underwater to refinance at a 30% Fixed Rate of  2% based on what they currently owe (No Cashouts are allowed). 3.  For those with non-collateral debt (including Student Loans) allow a one time write off not to exceed $100,000.  (Also if you take the one time write off you will adhere to strict credit restrictions over a 10 Year Period such that you will not be allowed to have more than 2 credit cards with a combined maximum amount available of $2000).  Also if you want to get a car or a home you must be able to document your income and not buy something you can't afford.    4.  For those who have no debt there has to be some reward.  I would propose that you get a $10,000 Tax Deduction for each year over the next 5 Years which adds up to $50,000.  After this you will get a $5,000 Tax Deduction each year thereafter for an additional 5 Years which adds another $25,000.  Thus over a 10 Year Period you will be given a total of $75,000 in Tax Deductions for not being in substantial Debt. I know this is a rather simple plan but nobody in Congress or the President has proposed any type of substantial plan to help the other "99%" in the country.

No Pay Raise for 2014

The Republicans are trying to sneak a measure into the next Continuing Resolution that includes no pay raise for Federal Employees in 2014.  That would make 4 years in a row with no raise. 

Debt continues to Climb

At the end of February the national debt has reached almost 16.7 Trillion.  keep in mind at the end of December it was near 16.4 Trillion so in 2 months we have added 300 Billion Dollars in new Debt.  By the end of the year it will be well over 17 Trillion.

Ridiculous Headline from CBS News

Here is the headline "Fiscal talks fail, US stumbles toward Steep Budget Cuts"

You have to be kidding me these cuts are only 2.2% of the 2013 Budget.  Yet CBS News says this is steep spending cuts.