I found this comment at economist.com which sums it up well.
Aug 4th 2011 5:35 GMT
I see this is the beginning of the end of an empire…..
Let’s go from the top; President Obama is a lawyer; another politician, he and his wife have been on some sort of government payroll all their life and never made a penny in private sector. Obama turns out to be a bullshit artist, another politician doing horses trade you have never seen in U.S. history. Bailout Wall Street, Government own GM, increase bureaucracy, etc. So, he can get donations from Wall Street, vote from Union, and whoever benefited from his policy. The country is low on his list, but, keeps on giving lip service of how great the country is.
The U.S. congress is owned by special interest groups, lobbyists. U.S. congress will fight for his/her district and whoever give them money. People vote for whoever can benefit that voter the most. The country is also low on the list as well.
The real problem is people that mean you and me. The greed, selfish, gets whatever I can and forget others are the real problem. Unless the mindset changed, this country will continue go downhill until it hits a brick wall, something dramatic will happen, may be revolution, may be war, may be the worst depression you have never seen, or contagious diseases.
Let’s take a look at the main street of what is going on:
Right now, Bank of America has an inventory of 200,000 foreclosed homes (have not paid their mortgage for more than 2 years) on hand ready to hit the market. There were all sorts of law suits for lost papers, wrong signatures, tired up in court to be resolved too.
Think about all other banks. Federal Reserve has more than one trillion dollar non-function loans on hand, ready to be released.
Currently, 20% of home in Florida is vacant. Another 20% are under the water; almost 40% of homes in Florida are vacant, abandoned or underwater.
Home values in California lost 60% of its value in Stockton and most areas in Sacramento; almost 25% of the homes in California are vacant or abandoned.
The situation is worse in Las Vegas, Nevada and Phoenix, Arizona. The home values lost almost two third.
The worst of all is Detroit; the home value lost 75% in most area.
The interest is going to rise; another adjustable mortgage is ready to hit the home owners.
Federal Government is running 1.56 trillion dollar deficit; just like every one dollar U.S. government spend, 45 cents is borrowed from China, Japan, or printed money from thin air.
Most state, county, city governments are also running billions after billions deficits, they keep on increasing fees and taxes. In stead of cutting back their huge bureaucracy.
America needs to cut spending, reduce taxes, cut bureaucracy, and abolish PAC and lobbyists, etc. Make the society more productive and produce things.
Few months ago, in the CBS 60 minutes, it said U.S. has the highest corporation tax rate in the world, many companies moved their company to oversea; Transocean has 1200 worker in U.S., but, their headquarter in Zug, Swiss, after that their 10 executives moved to Geneva for lower tax rate. Accenture (formerly known Anderson consulting) moved their headquarters to Bermuda.
U.S. needs to become more competitive, creates real jobs, not funny jobs, government creates non productive jobs will only hurts the country in the long term. Most of the taxes collected by U.S. government is taking money from productive sectors into non productive sectors. The abuse in welfare system, food stamps, military, disability Social Security payments…….
Last time I checked, the U.S. National deficit is 14.2 trillion.
The 2011 budget is 3.5 trillion and the deficit for 2011 is 1.56 trillion.
If you add all the state deficits, county deficits, city deficits, mortgage debts, student loan debts, credit cards debts, underfunded Medicare obligations, underfunded drug prescription obligations, underfunded social security obligation, etc…. That is equal to 1.2 million dollar for every one in U.S.A.
So, everyone in America, young or old, male or female, is a negative millionaire…..
If interest rate increased to 10%, in few years, the total income for U.S. government can not pay…… just the interest on the total U.S. National deficit of 14.2 trillion and increasing……
The rude of awakening…..
What a sad joke…..