patience wrote:Slight problem with US.gov finances. It seems the tax take is down significantly.
Quote:
"Receipts from individual income taxes fell 27% in March, versus year-earlier figures
Slight problem with US.gov finances. It seems the tax take is down significantly.Quote:
"Receipts from individual income taxes fell 27% in March, versus year-earlier figures. Individual refunds are up 14% so far this year. Compared with a year earlier, corporate income tax receipts fell 90% to $3.4 billion." From Nathan's Blog, at http://economicedge.blogspot.com/2009/0 ... march.html
Meanwhile, spending is going up toward infinity.
The whole piece is worth a read. How the hell are we gonna print our way out of this?
shortonoil wrote:patience said:Slight problem with US.gov finances. It seems the tax take is down significantly.Quote:
"Receipts from individual income taxes fell 27% in March, versus year-earlier figures. Individual refunds are up 14% so far this year. Compared with a year earlier, corporate income tax receipts fell 90% to $3.4 billion." From Nathan's Blog, at http://economicedge.blogspot.com/2009/0 ... march.html
Meanwhile, spending is going up toward infinity.
The whole piece is worth a read. How the hell are we gonna print our way out of this?
This idea of “printing ourselves out of debt is absurd”. It is like trying to pick yourself up in a bucket! The FED does not print money, it prints currency. Until someone assumes a debt no money comes into existence. The truth is that the economy shrunk by 6.3% last quarter. $850 billion per year.
That $850 billion will reflect itself in $ trillions of lost credit origination. Without growth this shebang is going down the drain, and it is going to go about it geometrically.
Without additional energy, economic growth is not going to occur. One hundred years of fossil fuels’ declining ERoEI insures that any additional energy won’t be coming our way soon. Check Mate!
rangerone314 wrote:http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/is-america-about-to-go-broke.aspx
2nd page of article has a nice chart comparing unfunded obligations to net worth of country.
Government obligations for Social Security and Medicare may soon exceed the combined net worth of every household and nonprofit organization in the country.
mefistofeles wrote:I think the horse is already out of the barn, America isn't going broke its already there.
Yup. The question is how soon they are incapable of paying even the INTEREST on the debt. I think its like 2011 but it might be sooner given the massive deficit spending...-G
Retail Sales -0.4% in April from a month ago, well short of economist consensus of +0.1%. Sales are 10.1% lower than a year ago. Ex-auto, sales were -0.5% vs. consensus of +0.2%. Electronics sales fell 2.8% in April, leading decliners. Auto sales were up 0.2%, while building materials were up 0.3%. Motor vehicle and parts sales were 20.7% lower than April 2008.April's sales decline was the eight drop in the last 10 months. With 2/3 of the economy dependent on the consumer, this puts the green shoot theory in the toilet.
US federal debt will be $3 trillion in fiscal ‘09. Foreign investments are now negative, To finance this huge debt they are two choices, increase Treasury bond yields significantly or monetize.
Andy Kessler: "The stock market still has big hurdles to clear. You can have a jobless recovery, but you can’t have a profitless recovery. "
alokin wrote:America is far away. which countries is it likely to take with in its free fall?
Gerben wrote:The UK is in similar trouble. Then there is Ireland in between. Some south European countries are also not doing very well. Some Mid and East European countries borrowed too much in foreign currencies. In short: Europe as a whole could be next.alokin wrote:America is far away. which countries is it likely to take with in its free fall?
JPL wrote:Ah well, here's something to cheer y'all up:
JP
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