Thursday, September 1, 2011

Obama's Plan To Save The Country: Get Ready For More Debt And More Failure

Please note: in the 3 years that Obama has been President, the outstanding amount of Government debt has increased by 40%. Nominally that number is $4 trillion. But wait, as I was discussing with someone last night, Obama also added $7 trillion in Fannie Mae/Freddie Mac debt to the Treasury debt-load, but this is still counted as "off-balance-sheet." I guess because there is hope that one day the housing market will recover enough to start paying off that debt. BUT, in reality, the Taxpayer debt burden under Obama has actually climbed - not from $10 trillion to $14 trillion - but to $21 trillion when you include the FNM/FRE debt, which technically needs to be included.

There's a statistic compiled by the IRS that shows 54% of the population is expected to pay 100% of the Federal taxes paid by individuals this year. Think about what the means for a minute. If you are one of the 46% of the U.S. population who does not pay taxes, you don't care if the Government spends money like Obama is proposing because it doesn't come out of your pocket. It's not food taken away from you or your family and given to someone else. To me that is a stunning reality about how badly the incentives are skewed in our system and it's why the Government can continuously implement spending programs that transfer wealth from the the Taxpayers to non-taxpayers and the elitists with little resistance from the masses: FORTY-SIX PERCENT of the country either benefits directly from this wealth transfer OR does not help to fund it or both. Think about that if you are one of the 54% who actually pays taxes.

I recall that in 2002, when a close colleague and I were discussing how we thought the collapse of the system would unfold. So far what we outlined has largely unfolded, only it's taken several years longer to occur than we originally envisioned. I remember him saying that "eventually we are going to see things that will blow our mind." I can truly say that the way the last three years under Obama have unfolded - and the incredible, tragic acceleration in fraud and massive theft of middle class wealth enabled by him - has truly blown my mind.

Be prepared because it's going to get a lot worse.

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