Green Energy
- The Deal ? Maybe The Answer Is To Boycott The Next 2 Election Cycles
The news is now filled with portents of a ramp over the fiscal cliff.Instead of increasing the tax rates on those making $250k or more, it’s $400k.INCREASES in spending would be cut by about 10%. How? Well one way is to reduce the increases in social security...
- Hooray For America! We Suck The Least!
Despite everything, it’s the USA, the american people as expressed by US Treasury NotesForeign holdings of US debt hit record highForeign holdings of US debt hit record high; China ups holdings after 2 declinesForeign demand for U.S. Treasury...
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Bloomberg: Bernanke Says 8.3% Unemployment Understates Weakness in U.S. Labor Market By Craig Torres and Josh Zumbrun Federal Reserve Chairman Ben S. Bernanke said the 8.3 percent rate of unemployment in January understates weakness in the U.S. labor...
- Debt Beyond Belief
Alan Caruba's essay is HERE. As Mr. Caruba rightly points out, the United States has now reached the point that the government can no longer collect enough taxes to make a smidgen of difference and our national debt. When a household reaches the point...
- For Discussion: Deficit Reduction
HERE in the Washington Post you can read the highlights of the deficit-reduction proposals. The include the following:-Overhaul individual income taxes and corporate taxes. For individuals and families, eliminate a host of popular tax credits and deductions,...
Green Energy
"How would you feel if you knew that almost all of the money you pay in personal income tax went to pay just one bill, the interest on the debt?”
CNBC Today
Chances are, you and millions of Americans would find that completely unacceptable and indeed they should.But that is where we may be heading.Thanks to the Fed, the interest rate paid on our national debt is at an historic low of 2.4 percent, according to the Congressional Budget Office.Given the U.S.’s huge accumulated deficit, this low interest rate is important to keep debt servicing costs down.But isn’t it fair to ask what the interest cost of our debt would be if interest rates returned to a more normal level? What’s a normal level? How about the average interest rate the Treasury paid on U.S. debt over the last 20 years?That rate is 5.7percent, not extravagantly high at all by historic standards.So here’s where it gets scary: U.S. debt held by the public today is about $12 trillion. The budget deficit projections are going down, true, but the United States is still incurring an annual budget deficit by spending more than we take in in taxes and revenue.The CBO estimates that by 2020 total debt held by the public will be $16.6 trillion as a result of the rising accumulated debt.Do the math: If we were to pay an average interest rate on our debt of 5.7 percent, rather than the 2.4 percent we pay today, in 2020 our debt service cost will be about $930 billion.Now compare that to the amount the Internal Revenue Service collects from us in personal income taxes.In 2012, that amount was $1.1 trillion, meaning that if interest rates went back to a more normal level of, say, 5.7 percent, 85 percent of all personal income taxes collected would go to servicing the debt. No wonder the Fed is worried.
Nothing to worry about. In January the govt will demand that we all have health insurance or pay a fine, and for all who make less than $92k they will get a check from the govt for that, ballooning that debt further, which goes to insurance companies (i.e. THE WINNERS)
No problemo, right?
- The Deal ? Maybe The Answer Is To Boycott The Next 2 Election Cycles
The news is now filled with portents of a ramp over the fiscal cliff.Instead of increasing the tax rates on those making $250k or more, it’s $400k.INCREASES in spending would be cut by about 10%. How? Well one way is to reduce the increases in social security...
- Hooray For America! We Suck The Least!
Despite everything, it’s the USA, the american people as expressed by US Treasury NotesForeign holdings of US debt hit record highForeign holdings of US debt hit record high; China ups holdings after 2 declinesForeign demand for U.S. Treasury...
-
Bloomberg: Bernanke Says 8.3% Unemployment Understates Weakness in U.S. Labor Market By Craig Torres and Josh Zumbrun Federal Reserve Chairman Ben S. Bernanke said the 8.3 percent rate of unemployment in January understates weakness in the U.S. labor...
- Debt Beyond Belief
Alan Caruba's essay is HERE. As Mr. Caruba rightly points out, the United States has now reached the point that the government can no longer collect enough taxes to make a smidgen of difference and our national debt. When a household reaches the point...
- For Discussion: Deficit Reduction
HERE in the Washington Post you can read the highlights of the deficit-reduction proposals. The include the following:-Overhaul individual income taxes and corporate taxes. For individuals and families, eliminate a host of popular tax credits and deductions,...