The U.S. Government owes more money than all of the other nations combined. It now borrows 40 cents for every dollar it spends. Soon the cash deficit will reach $14.3 trillion, which is the current limit by law. We expect the debt ceiling limit to be raised to about $17 trillion, and the best we can hope for in spending cuts is a pathetic $50 billion.
Yet the president claims with his new budget that he will save us $1.1 trillion over ten years, and that there will be a freeze on spending. Sure, after he first increases spending. He must have owned a retail store in his first life, because like a store owner, he’s going to raise prices by 50% just before announcing the “onetime only” half off sale. He plans on paying for his spending spree by increasing the marginal tax rate from 35% to 45%, dividends from 15% to 30%, and by raising the death tax. He must think we sit on the stupid bench!
Why should we be so lucky this time to think the president is telling us the truth about the meager 10 year, $1.1 trillion savings; especially after he lied to America about not mandating healthcare during his presidential campaign? His quote was, “Hillary mandates that everyone buy healthcare. She would have the government force every individual to buy health insurance. I won’t have such a mandate when I become president, because I don’t think the problem is that people don’t want health insurance as much as they can’t afford it. I’ll focus more on lowering costs, not mandating that everyone buy health insurance. If mandating everyone to buy health insurance would solve the healthcare problem, then we should mandate to solve the homelessness problem by forcing everyone to buy a home. No, I would never mandate health insurance and force people to buy it.”
Now that he is president, not only has he required that we all buy health insurance, he’ll hire 5600 more IRS agents to enforce the law. And like the Gestapo, he’ll throw anyone in jail for a year who refuses to either provide health insurance for their employees or to pay the mandatory fine. So much for the words honesty and democracy, where a promise was a promise, and a person’s word was good.
Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect | Mike Shedlock