There's a way out of their mess...
Suppose we didn't want the publicly held debt to rise more than 2 trillion over the next 10 years. Here's some numbers. Starting with Treasury Direct's Debt to the Penny, we discover that on December 31st, 2009, publicly held debt was 7.8 trillion. As of March 4th, 2010, it was 8.06 trillion. Thus we are going add about 1.16 Trillion a year to publicly held debt.
The estimate for 2010 (see the Monthly Treasury Statement for Dec 2009) is that all individual income taxes will total 1.03 trillion for this fiscal year (Oct 09.Sept 2010). Because our interest rates will rise when the economy recovers, our debt servicing costs are going to rise quite a bit.
In any case, to fend off further increases in the publicly held debt (and higher interest payments), we would need to pretty much double each taxpayer's individual income tax bill. So whatever you are paying in taxes this year, multiply by 2. That's what it requires.
That's just the teaser.
I love this: Annual Growth of Federal Revenues and Gross Domestic Product, 1970 to 2020.
Meanwhile, "cash-strapped states such as North Carolina, Alabama and Hawaii have been forced to slow down issuing income tax refunds to individuals and businesses because of a lack of funds in their budget".
But not to worry, in the minds of the "Obama Recovery Watch High Alert" media: 36,000 workers laid off in February = "positive jobs report".
With our national economy so dependent on trade with the elephant to the south, you'd think those numbers would be scaring the bejesus out of each and every one of us - beginning with our finance ministers. But by all indications, you'd think wrong.
Any predictions on the inevitable economic 'armageddon' ? When, how and what the landscape will look like? Will we go back to agrarian or hunter/gatherer lifestyles? The ecokooks will be happy I suppose.
The jury's in. The Progressive Conservatives beat out the Reformers for control of the Conservative party. And I laughed at Joke Lark when he said "we're not joining anybody, we're taking over".
What a grim, and realistic, assesment.
It is obvious that Barry's brain is over heating due to global warming and the result is a tragic love with the national credit cards.
New Jersey Elected a man who is doing the job that needs to be done.
Check out his talk to the mayors of New Jersey.
He is telling the truth and will fall on his sword to get it done.
Christie speaks, liberals bleed
From the Financial Post article:
"The “strategic reviews” of departmental spending aimed at trimming fat from the public sector will only save $1.3-billion over five years.
Over the five year period, the federal government plans to spend over $1.4-trillion. The “savings” plan will actually shave only 1% off total government spending. How is that austere?"
It seems to me that $1.3-billion is only 0.1% of $1.4-trillion, not 1%. Even less austere.
From Jay Lenos monologue:
President Obama had his annual physical last week. While the colonoscopy didn’t reveal any polyps, they did find three MSNBC reporters and a New York Times columnist.
Wasn't the war supposed to be paid off with oil revenues?
Obama's war on prosperity will either succeed in collapsing the Republic into a basket case welfare state or he will have inspired the second American revolution which will see the productive sectors collapse the parasitic and regulatory political ruling class. Forget the "Party of No", the saviors of the Republic must become, if a democratic solution is possible, the "Party of Creative Destruction".
All federal entitlements should be phased out and virtually all federal agencies eliminated. The IRS should be replaced with an initial 15% flat tax on all personal income gradually reduced to 5% after elimination of the federal debt. Corporate taxes should be eliminated. The federal government should be reduced to core functions of National security, Judicial and Military. The states could then compete without the federal mandates and bribes.
Anything less would be a bubble gum weld on a rusty ship.
That was simple.....Next?
By far the hardest hit provinces in an eventual US meltdown will be Ontario and Quebec ... so I wonder how they'll feel then, after all, they voted for Obama.
Pundits apart from the Insane Right Wing of Limbaugh and Hannity seem to be confused by Obama. They do the numbers, they read the writing on the wall, which by now is written in letters of flame thirty feet high, and they are confused.
Obama's chosen path here OBVIOUSLY leads to catastrophe. But how can that be? Obama is The One, the Hope and Change We've Been Waiting For.
They can't wrap their heads around the idea that the Democrats have to be trying to ruin the US economy -deliberately-. Because nobody, not even Barry, could be this stupid naturally.
As for Harper, can y'all imagine what would have happened if the CPC brought out a budget with no stimulus spending plus budget reductions for the federal government? Actual CUTS to the holy bureaucracy, not just "reduced increases"?
Does anyone here seriously think the Canadian Union of Public Employees wouldn't riot and burn the frickin' parliament buildings down?
These things were grown slowly, they have to be bled to death slowly. One little slice at a time by assassins in the night, as it were.
And lets not forget, there's always Wild Rose.
Oh, and lets not forget that cops and firemen are UNION, shall we?
Kathy Shaidle posted something the other day about the police strike in Montreal years ago. The author of the piece seemed to think it said something about how Canadians aren't as nice as everybody thinks.
I think it demonstrated the folly of trusting your personal safety to a government union.
Who in hell put that graph on GDP growth together??
GDP growth of more than 10%??? In China maybe. Sure as hell not in the us. Sure as hell not in the recession in the early 80's.
Only one negative GDP growth period on that whole graph? I don't think so.
GDP growth of 3% is considered a good year in a developed nation and the US is considered by most people to be developed.
Obamametrics is just not like the math I learned in school...
Yep, and wait until the rest of the baby boomer's retire in the USA(roughly 10 years, that's me)and there will be roughly 3 workers supporting 1 retired individual. Pitty our children (those entering the workforce now, they'll have zip to depend on from the government. I suppose I won't either because that is when our system will implode from debt.
Canada in some ways is worse off. The Provinces have a Total Public Debt of 957B. Ont. has over 300B, Quebec over 400B worse than Greece. The Ottawa Debt is around 3T. Canada only has about 16M actual Taxpayers. Taxes now consume more of the average Canadian's Family budget than Food, Clothing, Housing and Transportation combined. Link To Debt Stats. http://docs.google.com/viewer?a=v&q=cache:8jUbCS5Jp1IJ:www.fraserinstitute.org/commerce.web/product_files/CanadianGovernmentDebt2008.pdf+canadian+government+debt+2008+a+guide&hl=en&gl=us&pid=bl&srcid=ADGEESj0P_nVzS6Tc3Ur6lQplD68WfZOnqVy9lIz124tNumbwWTqIj0k0MQmJlCEpL1bkuIimBD0o2hNCO-3SvshkTFs29juN_tSObFdaKr0QeZubbOW5hDq_epwWfsMqG4IA2rtSKRm&sig=AHIEtbTiwbdX5Ex4nNsa-jQwsWSxgeDLvw
Arty @ 10:52 said "The Progressive Conservatives beat out the Reformers for control of the Conservative party."
That is what I told the fellow from the Conservative Party a few weeks ago when he phoned for a donation. I suggested to him that Prentice appears to have bought Al Gore's AGW scam and the "progressive" conservatives appear to have taken over. He agreed with me.
Sometimes I think that the bureaucrats actually run the various ministries the way they want and the federal or provincial ministers are just fronts for the bureaucracy.
RFB, remember: tinyurl.com can be your friend.
btw, the Fed finance minister is already being diss'd by the MSM for bringing a conservative budget and not giving out any new goodies. Publicly stating that the US economy melt down could be a problem for Canada would only spin up the panic (or is that pandemic) public. Remember, most voting sheeple can't handle the truth.
Ken (Kulak)
[....Sometimes I think that the bureaucrats actually run the various ministries the way they want and the federal or provincial ministers are just fronts for the bureaucracy.]
Think??? Know it!!!!
Phantom is correct. Cutting the size of government will result in a bloody insurection. Remember the union's bitter feud with Harris' Common Sense Revolution? The unions openly stated the government had a responsibility to it's employees---first.
The Teachers Union as much as stated that schools' purpose primarily is to employ teachers.
What Kulak and sasquatch said.
I've been there- in spades.
The TO Sun had an section and articles on GTA and TO schools and how they did on the grade 3 and 6 tests. Harris brought in so many great things in education but the unions have eliminated almost everything he did. Now the teachers want to eliminate the Frazer testing of the students as the money should be spent on music and the arts!
They have succeeded in getting rid of student marks on the first term report card and replaced it with the same stupid and useless computer generated comments like "Jane is doing much better than last term." Really helpful to the parents.
Plus McGuinty has allowed the teachers another $1.5 billion annually to have full day kindergarten. Surprise, surprise it will require hiring more teachers!
It will be a bloodbath cutting back the snivel servants as they are entitled to their entitlements.
Careful... These two guys..
Niels Veldhuis and Charles Lammam ..are only expressing an opinion.
I think they fail to account for Harper being not only an economist but a tactical POLITITION.
A page full of fancy numbers mean nothing if the modus operandi is misunderstood.
Politics means unexpected elements designed for party survival. Nothing is as it appears...
Big funds set aside for research project in the North. Set aside! not released.
Current projects in the North continue short of funds.
A variety of Stimulus funds at the ready, but many not released.
A Harper minority likes to set up plans with a delayed activation lever. Those levers to be released when the timing and politics are exactly correct.
I love it Steve. Just what I would do.
With our current deficit running at 4 point something, there's nothing local to worry about at all.
It is the coming misfortunes of the USA that will hobble Canada's economy.
That is if the PIGS don't mess everything first.. [PIGS = Portugal, Italy, Greece , Spain]
['I' could be any of.. Italy, Ireland or Iceland]
The ' ' PIGS ' ' link if you missed it going by here earlier..
marketoracle.co.uk/Article17147.html
The US economy will not recover until government gets out of peoples' lives and manufacturing and resources are again allowed to do their thing.
Jason - the graph shows nominal growth (including inflation), not real growth, so it's rather misleading.
The idea that the public sector and socialism can continue to grow with the taxation model being used today is a fallacy. The public sector and all of its free loading benefactors are essentialy parasites that feed on the taxpayer. As the parasite grows the host becomes unable to support the guest. It is only a matter of time before this problem will have to be delt with, and there is only one solution when government and the people living off of their revenues are bigger than the private sector paying the taxes (you know you are already taxed every which way from Sunday now), and that is simply eliminate all taxes completely and let the government print new money to fund their budgets. This provides unlimited econimic stimulus and instead of paying taxes and fighting with all the paperwork, you just run, run from inflation as fast as you can, because it beats being road kill, and inflation may actually turn out to be cheaper than taxes, because as the money supply grows the less effect the government budget has over it.
Real GDP numbers are very different.
"Several tax provisions enacted over the past decade are set to expire in December 2010. Because of those expirations and a strengthening economic recovery, CBO projects that revenues will increase substantially after 2010..."
Uh-oh.