In case you weren’t paying attention in history class, The UNITED STATES OF AMERICA is made up of WE THE PEOPLE… and WE THE PEOPLE basically owe the debt of the USA… Over the last SEVEN YEARS.. each taxpayer is now some $60,000 more in debt because of Congress’ inability to spend only what comes in via tax revenues… some years as much as ONE TRILLION more spend than taken in.
The Federal Reserve has help this Administration dodge a lot of unpleasantness by keeping the going interest rate at around 0%. But with a extra NINE TRILLION in our national debt.. what doe you think is going to happen when – NOT IF – the interest rate returns to its normal range of 4%-6%? Think 450 billion/yr in new debt service costs.
That low interest rate works good if you are buying a new house or refinancing existing loan… but.. if you are retired and expecting to live on the interest on the money you saved during your working years… lots of luck with getting 1%-2% the money that you have in the bank.
Those that are living on Social Security income, the Feds are always “readjusting” what is in the “market basket” that determines what the CPI is… the lower the CPI .. the lower the increases that have to be given to SS recipients at the beginning of each year.
The Medicare Disability Trust “lock-box” is suppose to go into a 20% negative cash flow sometimes in 2016.. and why is that .. because Congress has “borrowed” all the money out of all the trust “lock-boxes” and left behind IOU’s from UNCLE SAM… and while we are now spending more than we are taking in … just where/how is Congress going to make up that 20% short fall… give all the people on Medicare/SS disability a 20% “financial hair cut” or just raise taxes on the 53 % of the households that pay Federal Income taxes ? That’s right… 47% of households pay NO FEDERAL INCOME TAXES…. while the IRS admits that they fail to collect abt 500 BILLION/yr in income taxes…
Next year (2017) the next stage of Obamacare kicks in and this is going to be a major increase in the cost of Obamacare… just as Obama leaves office Jan 20th.
During the Obama administration people on food stamps went from 28 million to 46 million, but expected to drop by ONE MILLION in 2016 because of harder rules to qualify.
Labo
r participation rate… the lowest in 36 yrs.. and a rather steady decline since 2008.
This means that the 5% unemployment rate that this administration is reporting… does not count these people who have given up on getting a job.
It has also been reported that the term “employed” means that a person could be working 5-10 hrs/wk or 40+ hrs/wk and is counted as being EMPLOYED.
Maybe it is just a coincidence but the war on drugs seem to have a serious uptick within 1-2 years after Obama Administration came to power and it now seems that we are seeing a uptick in a last ditch effort in this administration’s last year.. with the CDC, DEA, Surgeon General and other parts of the the Federal alphabet soup of Federal agencies are “getting on board” to this “bum’s rush” to gain as much ground as possible over the last year of this administration’s ability to influence this … war on drugs/pts.
Filed under: General Problems
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