Wednesday , 22 May 2024

Debt & Deficits

Say “I WILL NOT PAY!”: An Open Letter to Those Under 18 (+2K Views)

I implore you to pass around this letter to your friends. Talk about it among you. Post it up on Facebook, Twitter and elsewhere. Discuss the fact that our government and your parents think you are going to pay over $180,000, and rising rapidly, so that us older folks can have our cake and eat it too...and then force you, the children of this nation, to cover our selfishness and outrageous conduct. I say to you in this open letter that it is your right to stand as American citizens, irrespective of your age who have not yet consented, and say in a loud, clear, singular voice: "I WILL NOT PAY!" Words: 2112

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The Markets & Politicians Got It Right: The Fiscal "Cliff" Is/Was Nothing to Panic About

Why are Congress and the White House not panicked about the looming fiscal "cliff"? Why has the Dow pulled back only 2% rather than plunging 2,000 points as time to forge an agreement by year-end has foolishly dwindled down to just a couple of days, and odds of it happening have become remote? Probably because the markets and politicians are aware that the economy is not going to suddenly plunge over a cliff into an abyss on January 2 if an agreement has not been reached by then. [Let me explain just what it does mean, though.] Words: 785

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New Consumer Earnings & Spending Data Show U.S. & E.U. Citizens Living Way Beyond Their Means

The west is living far beyond its means and is struggling with pitifully anemic growth. This is a long-term trend, and one that is only going to accelerate. Nevertheless, as obvious as the indicators may be, few people will actually do anything about it. A lifetime of propaganda will plant many heads in the sand, ignoring the dangers and opportunities all around. [Let's take a close look at just what these indicators are.] Words: 311

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U.S. Debt 101: If the U.S. Were A Stock Few Investors Would Own It – Here’s Why (+2K Views)

There has been a lot of media coverage about the United States' debt issue these days. Why should we care? Because as U.S. citizens, we all own stock in this "company" called the United States of America (let's say the ticker symbol is USA). We purchased this stock through the various taxes we pay every year (income tax, payroll tax, corporate tax) and we receive dividends through the various benefits we receive every year (security provided by defense budget, Medicare/Medicaid benefits, Social Security benefits, etc.). This article attempts to explain the U.S. national debt in simple layman's terms by analyzing the United States and its debt issue as if it were a stock investment. Words: 1929; Charts: 5; Tables: 1

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World Debt 101 (+3K Views)

"World Debt 101" examines some of the world's largest economies and illustrates just how much they have borrowed and what measures many of their governments are now taking to curb spending and narrow those deficits.

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The Government May Soon Force You to Include U.S. Treasuries In Your IRA and/or 401(k) Plan

There are huge amounts of money in the IRA ($3.5 trillion) and 401(k) ($5.1 trillion) retirement plans in the U.S. (another $9.9 trillion in assets held elsewhere) according to a recent Investment Company Institute study which makes it very tempting for government to try and get at it. [While] the government may, or may not, tax the money, they may force you to include a sizable percentage of the retirement assets in your IRA and/or 401(k) in U.S. Treasury securities, which may be among the worst investments in the years ahead as interest rates go up and price inflation eats away at the buying power of those IOUs. [Let me explain.] Words: 802

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Lack of Economic Growth Expected to Continue Until 1 of 2 Things Change – Here They Are (+2K Views)

Saving rates continue to fall. As full-time employment remains elusive, the average American continues to resort to debt, and governmental support, to fill the gap between waning real incomes and their expected standard of living....[This] will continue to impede economic growth until such time as either debt returns to levels that are conducive for higher levels of personal savings or incomes rise. [Words: 1322; Charts: 7]

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Drop Over & Read These 10 Insightful Articles on the "Fiscal Cliff"

So much continues to be written on the so-called "fiscal cliff" that someone had to sift through the 100s of such articles and find those worth one's time to read. I have done just that and provide below links to 10 of the best such articles each of which been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy!

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