Time to polish off this instablog and relook at the issues.
The spending is out of control and there seems nothing congress will do to stop it. Lip service by the two political parties (Dumbo and Jackass) will not return spending to a level that is sustainable by the incomes of the American people. We are in serious financial trouble.
Unfortunately I think preventing a day of reckoning is already to late.
The two graphs below say everything that needs to be said. A picture is worth a thousand words really is true.
Thanks to Heritage.org for the following chart
Oboma claims he inherited the deficit. He did, but it was smaller than it is now and instead of fixing it he is adding to it. But one must also remember he voted for the spending in 07 and 08 as senator in a congress run by Democrats that bypassed Bush with a continuing resolution in 08. He inherited his own spending and now look at what we, our children and our grandchildren are going to inherit.
Additionally it becomes apparent that the spending can not be paid based on the incomes of the American people. See the second graph below.
We are in deep trouble and only a HUGE correction in spending will fix our problem since we now have a large interest payment compounded upon this dept that will add to the spending woes.
Thanks to Political calculations for the chart and info that followes.
If you were asked to produce a single chart illustrating the biggest single political issue in America today, what would it look like?
We're taking on that challenge today. Here's what we came up with:
In this chart, where we've graphed the trajectory of the total spending of the federal government with respect to the median household income in the U.S. for the years from 1967 through 2009, we see that the U.S. federal government's spending today has decoupled from the primary source of income that is required to sustain it.
Worse, it has literally "gone vertical" during the last two years.
In mathematical terms, that's the sort of thing you see when you divide any number by zero. Applied to the chart above, that means that the relationship between the change in total government spending and the typical income earned by an American household from year-to-year is now "undefined."
In practical terms, that means government spending has become completely disconnected from the ability of the typical American household to support it. And until this skyrocketing spending growth is arrested and reversed, we suspect that government spending has become disconnected from the ability of any American household to support it.Data Sources
White House, Office of Management and Budget. Historical Tables, Budget of the U.S. Government, Fiscal Year 2011. Table 3.1 - Outlays by Superfunction and Function: 1940-2015.
U.S. Census. Table H-5. Race and Hispanic Origin of Householder -- Households by Median and Mean Income (1967-2009).
Authors note. Things are headed in the wrong direction and it is just a matter of time till we are dead meat as the little kid said in Mel Gibson's movie Mad Max. Somehow jumping in the trunk of the car and climbing down a rat hole seems futile at best.
Best to prepare for an Austerity plan for America. Can you financially survive that?
Disclosure: None but I will be taxed with every other American to pay these pending bills.