Obama is HOSED!!!!....can he save America???
It appears the Bush/Pelosi administration handed President Obama an economic catastrophe that will impact EVERY American in radical ways in the very near future.Federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago — the biggest April drop since 1981, a study released Tuesday by the American Institute for Economic Research says.
When the economy slumps, so does tax revenue, and this recession has been no different, says Kerry Lynch, senior fellow at the AIER and author of the study. "It illustrates how severe the recession has been."
For example, 6 million people lost jobs in the 12 months ended in April — and that means far fewer dollars from income taxes. Income tax revenue dropped 44% from a year ago.
"These are staggering numbers," Lynch says.
Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.
In 1981 America's national debt was a fraction of what it is today following the last 8 years of incredible borrowing. In 1981 our entitlement obligations were much smaller...especially after the enactment of the prescription drug bill dramatically increasing the burden on government.
Let's think about this, revenues down 44% and six million workers lost their jobs in the months leading up to Obama's presidency??????
How can any executive walk into a company, where upon entering....the revenues drop 44%, its its fixed and variable costs are rising dramatically, and its citizens NOT be aware that he has been handed an economic catastrophe? Conspiracy or coincidence??? Not only is the tax revenues dropping, but the demands on expenditures are rising because millions have lost their jobs and now depend on the government for food and medical care as there are few replacement jobs out there to make a living. As the population ages, millions more will make demands on the government.
Hundreds of hospitals now depend on government payments to keep their doors open. Thousands of retailers depend on the revenues from food stamps and other aid given to our citizens. And as unemployment keeps going up, more and more will depend on government assistance just to survive even though the revenues to government will shrink. In the end, we all depend on each other as we all live in one economy.
How will Obama be able to make up a 44% revenue drop when 2/3 of the budget simply went to paying interest and entitlements BEFORE his arrival. If he doesn't pay entitlements, hospitals, clinics, and retailers shut down and millions will be out on the street. If he doesn't pay interest payments, the rates all Americans pay on their loans will climb to levels never seen before and few can afford.
How can President Obama simply meet the debt obligations? The previous Bush/Pelosi era created as much debt in eight years as America incurred since 1776 in total.
The math simply doesn't work and those that lend money to the U.S Government know this....
How could the previous Bush/Pelosi administration burden this nation with so much debt and not warn the citizens??? Now, at the current tax revenue receipts....just interest and entitlements will consume MORE than the total tax revenues....and that is before defense, security, and every other government expenditure. Did the previous administration think we should just shut down the country after its departure?
What should our President do??? Should he shut down hundreds of hospitals serving the health needs of our citizens??? Should he default on our debt driving borrowing costs for the citizens higher??? If he prints money and borrows even more, interest rates will also rise and few will be will be willing to fund an economy where declining tax revenues barely cover entitlements and interest???
Yes....President Obama was hosed the day he walked into the job of CEO of America due to the wanton spending of the previous eight years in the Bush/Pelosi era........now our President is faced with extremely difficult choices....shut down health care facilities, fire millions of workers slowing the economy further, and/or borrow even more likey causing interest rates to reach levels few businesses can afford?
At this point there are no easy choices....and Wall Street knows it....why do you think they are pursuing a Zombie Bank Policy transferring as much of taxpayer money onto their balance sheet as quickly as possible???....maybe becuase they know asset values are crashing and that we are running out of money???.....according to President Obama on Saturday....we are already out of money.
There you have it...Alstry's 100th blog for May......what can he say....but we are out of money and it is now time we as a nation start dealing it....or we will all be Zombulated soon.