First, obama created the "default plan" called sequestration. He pushed for it and got it passed.
Then obama got a tax hike on both the highest earners and everyone else. My latest paycheck was less, wasn't your??? obama caught in another li e when he said only people earning ver $250,000 would pay more in taxes. But I do not make anywhere near $250,000 and my taxes increased last paycheck.
So obama got two tax hikes without getting any spending cuts. The real problem has not been solved.
The tax hike will pay for only a few days in Federal spending.
Now obama want more taxes before he will discuss any spending cuts. Who is he kidding? All he wants is to TAX AND SPEND. Sound familiar? Oh Yeah, that's the Democrats plan. TAX AND SPEND - What os not said is "DAMN THE DEFICIT - IT DOES NOT MATTER"
But it does matter. It matters because we are now about FIFTEEN TRILLION 6 HUNDRED BILLION DOLLAR IN DEBT!!! That is a lot of "matter". And there is interest to pay on this debt. That is the 800 pound gorilla in the room.
WHY???
For two reasons.
1) Every dollar spent on the interest of the debt, can not be spent on the citizens for help with disasters, food stamps, keeping our borders safe, and all sorts of governmental expenses.
2) The Federal Reserve is forcing the rates down. At some point, the Federal Reserve will be face with one of many problems by keeping the rates so very low.
a) More money in circulation is a recipe for inflation - something no one wants.
b) As the Fed prints more money, the dollar drops in value. It has dropped about 28% since 2003.
As the value of the dollar drops, your ability to purchase things drops - specially as prices rise - c) As rates begin to rise, (as they will eventually have to rise to ward off inflation) the interest n the debt
will increase. One hundred of a percent increase per trillion dollars mean an increase of interest of
$10,000,000 or TEN MILLION DOLLARS, A full precent would be 100 times that or
$1,000,000,000 ONE BILLION DOLLARS. At Sixteen Trillion, Six Hundred Billion debt the
amount of interest per 1% increase of debt equals and EXTRA $16.500,000,000 in interest
payments. Money that can not be used for any social programs.And that does not even cut
one dollar of the debt.
SO THE DEFICIT MATTRS.
Getting control of the deficit requires a budget that is smaller than the Gross Domestic Product. BUT THE DEMOCRATIC SENATE HAS NOT PASSED NOT EVEN CREATED A BUDGET IN FOUR YEARS. AND THE OBAMA BUDGET WAS UNANIMOUSLY VETOED BY ALL THE DEMOCRATS AND REPUBLICANS. SO YOU KNOW THE OBAMA BUDGET WAS WORTHLESS.
Soo here we are. A "crisis" of the Democrats who are trying desperately to pin this on the Republicans while the obama administration is now going to 100 cities to sign up more people for government hand-outs. That has to stop or 'momentum' all by itself will implode the US DOLLAR and cause the real crisis as the dollar becomes worthless.
And that's the way I see it...
Straight Talk with Jay Clifford.
