Debt

Democrats, who just a year ago were roasting Bush and Republicans over the debt and deficit, have officially raised the debt ceiling by almost $2Trillion more (at the rate Obama spends it, that won’t even last a year). You can already see that it hit $12Trillion (the former ceiling) just this year.

Here are just a few things these clowns have wasted money on and continue thinking they are fixing things:

And the healthcare reform is supposed to be $850 Billion, but some estimates put it at over $2 Trillion in the long run. The healthcare plan is full of new taxes, the Cap & Trade bill is just another big tax, and the Bush tax reductions are going to expire in a year.

All of this means that we are going to be wrecked financially.

Federal Salaries

One of the things the government has no problem doing is raising their own salaries. More than ever are now making 6-Figures.

The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.

Considering the hundreds of thousands of federal employees, that’s a lot of 6-figures. Talk about a disconnect. The unemployment ranks are filling up while the government, the source of many of our woes, get rich. The fat-cats aren’t in Wall Street, they are in DC.

It’s interesting to note that the federal employees back taxes are about $3Billion.

It’s a Depression, not a Recession

Many people refer to a depression in many different ways:

unusually high unemployment.

This “recession” has all of those traits, but it isn’t being called a depression because of who would get the blame for it.

Well, some are not longer keeping quiet. This recession is really a depression.

The credit collapse and the accompanying deflation and overcapacity are going to drive the economy and financial markets in 2010. We have said repeatedly that this recession is really a depression because the recessions of the post-WWII experience were merely small backward steps in an inventory cycle but in the context of expanding credit. Whereas now, we are in a prolonged period of credit contraction, especially as it relates to households and small businesses.

…

As households begin to assess the shock and what it means for their retirement needs, the impact of this shocking loss of wealth on consumer spending patterns in the future is likely going to be very significant. Frugality is the new fashion and likely to stay that way for years as attitudes toward discretionary spending, homeownership and credit undergo a secular shift towards prudence and conservatism.

And don’t be fooled by the recent higher GDP. It was revised down and was solely due to government spending, which is a component of GDP.

Summary

This country’s economy is seriously deteriorating and the people at the helm don’t know or care.

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