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3% vs 2% September 30, 2017

Posted by hslu in 美國, Do you know?, Economics, Health Insurance, Obamacare, Taxes.
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We’re talking about the growth rate of American’s economy in the next 10 years.

Trump, well his underling, said that America’s economy will grow 3% on average for the next 10 years after Republican’s tax reform is enacted as law.

Source: Bloomberg.

You see, Republican and Democrat are ‘兩個烏鴉一般黑’, they are ‘一丘之貉’. They use this kind of financial trick to tell American citizens that even though their program, be it Obamacare in 2009 or tax reform in 2017, will increase deficit, but the resulting higher economic growth will generate enough taxes to make the new program budget neutral: a term you will hear repeatly before the end of this year.

Do you know the impact on American’s national debt if the economy grew 2% instead of 3%? 

About $2 trillion. And that’s assuming the U.S. won’t fall into a recession and no funny accounting gimmicks.

Last year, the U.S. federal deficit was $590 billion but the national debt rose by $1.4 trillion; a whoppying $810 billion difference.

Why? Where did $810 billion go?

Well, check out this link below and read yourself.

https://www.google.com.tw/amp/s/www.forbes.com/sites/johnmauldin/2016/11/02/thanks-to-obamacare-government-debt-is-worse-than-you-think/amp/#ampshare=https://www.forbes.com/sites/johnmauldin/2016/11/02/thanks-to-obamacare-government-debt-is-worse-than-you-think/
Allow me to give you some highlights to get you started:

Do you know that government’s borrowing to make student loans and repairs on highways and bridges aren’t classified as deficit? These items are ‘investments’ so that they don’t count as deficit. In addition, the U.S. government had to borrow some money to pay for social welfare recipiants because the government didn’t collect enough taxes from FICA deductions to pay for social welfare benefits: social security, Medicare and ACA. There are more in the article if your blood pressure is under control.

A warning: as powerful as America is, all bean counters working for the federal government couldn’t figure out where $82 billion went.

This is your America.

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$230 billion. Hmm…, that’s a lot of money. February 3, 2014

Posted by hslu in Congress, Economics, Global Affair, Taxes.
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That’s the interest payment America has to pay its creditors every year. That number is expected to go up to $650 billion if interest rates were to return to a medium level they were in the 1990’s.

Do you know how much is $230 billion?

it’s more than the U.S. spends at the departments of Commerce, Education, Energy, Homeland Security, Interior, Justice, State and the court system combined.

That’s scary!

What’s even more scarier is that the U.S. is adding nearly a trillion dollars to the national debt every year.

Hmmm…, I wonder who is going to pay the debt off?

US not trustworthy October 25, 2013

Posted by hslu in China, Economics, Euro, Global Affair, Obamacare, Politics, stocks, Taiwan.
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Foreign countries will no longer trust America no matter how many times Obama calls Merkel. It’s like an egg on American’s face which can’t be washed off easily.

Obama’s order to force Bolivia president’s private airplane to land in Austria has already caused serious consequences in its relationship with many South America countries. These countries will think twice before doing business with the U.S. again.

NSA’s monitoring of domestic and international communication has stirred up hatred towards American’s policy. This kind of action is simply not acceptable according to international laws. No amount of denying from Obama will ease other countries’ concerns. Even France and Germany are leery of American’s action and they will not be satisfied with whatever Obama or American ambassadors told them for a long time.

US federal government shutdown and debt ceiling impasse has became a joke among financial markets and other countries in the world. America’s credibility has been seriously damaged too. QEs by US Federal Reserve has other countries worried and countries like China, Russia, Korea and Germany will re-evaluate their foreign reserve policies. They will likely diverting some of their foreign currency holdings to other currencies such as Euro because Europe has started to emerge from financial ruins created by America five years ago. It appears that Euro as the single currency for EU countries is no longer in question and there is even some talk of creating a de facto central bank for EU countries. 

China will speed up its move to create more direct currency swaps with other countries, especially in South America,  in an effort to increase their acceptance of Renminbi in bilateral trades. As such,  the status of American dollar being the world reserve currency will be in question.

The high drama of currency war has just started. America, being the bully of the world, will continue to enjoy the privilege of being able to print the world reserve currency whenever it feels like it.

With American’s national debt at 100+% of US GDP and with America government borrowing 40 cents of every dollar it spends, the day of reckoning for the imperial empire is just around the corner.

Nothing but rotten eggs in US Congress July 12, 2011

Posted by hslu in Congress, Economics, Global Affair, Health Insurance, jobs, Obama, Politics, Taxes.
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A back door “raise the debt ceiling” plan was proposed by Senate Republican leader today.

http://m.cnbc.com/us_news/43729095/1

The US Congress has a lot rotten eggs who should have faced the run-away spending problem head-on with massive spending cuts in order to save the US from becoming the next Greece.

Instead they sit in their lavish office and dream up a plan only politicians’ mothers can like.

The debt problem is Obama’s problem. Obama can continue service the debt but he has to choose the programs he wants to fund and cut the ones he doesn’t like to fund. In the process, slashing the federal government by 10% just like any private company would do in the similar situation.

The US government is filled with waste and should be trimmed immediately.

Well, what is the chance this back door plan will pass the Congress?

ZERO.

It will be business as usual and the big bucket is being kicked down the road again.

As for the proposed $2 trillion spending cut in the next 10 years being tossed around these day, my advice for you is don’t bet on it because:

1. It is only $200 billion per year which amounts to about 14% of this years’ deficit.

2. Most of the cuts will in the out years which is a joke to start with. It doesn’t mean anything. Remember the spending cut for FY 2010? $60 billion became $20 billion. $20 billion was shrunk to $10 billion. Then $10 billion ended up as $450 million. Ladies and gentlemen, this was your Congress at it’s best with liberal media helping them hiding the real facts from US citizens.

3. The US government is very good at fudging the numbers. It has thousands of high paying zombies who are paid to message numbers on budgets, CPIs, PPIs and unemployment numbers. It will be the same on the so-called cuts.

Here is something you can wrap your arms around:

I say cut the federal worker by 5% a years for each of the next 5 years to start with. Cut their benefits retroactively to the previous 5 years. Let them eat their peas to borrow a phrase from Obama.

Then cut entitlement for those 30 and younger because they put Obama in the office who is responsible for the lousy economy we are in. Let them eat their peas because the have to face the consequence of their own actions.

More Porks are coming! More Porks are coming! December 10, 2010

Posted by hslu in Uncategorized.
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The Democrats are doing their best to add more Porks to the tax deal in order to buy out those senators and congressmen who are not happy with Obama.

$800 billion?

No way.

How about $1.2 trillion after all the sweet heart deals and behind the door arm twisting buyouts.

No way to pay for it? No problem. We’ll just borrow them from the China, Japan and Germany.

We have the press, don’t we?

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