Posts Tagged ‘taxes’

Great Collapse: a hyperinflationary great depression

April 29, 2011

Ok, now Shadow Government Statistics is scaring me with this report on a hyperinflationary great depression. 

Essentially – the government is monetizing the debt, killing the dollar, for a deficit we can’t afford anyways.  All leads to a massive, Weimar Republic type collapse…soon.  Like in the next 12 months.

What’s scares me about this is its using statistics and data to verify what I’ve heard other people I trust who say the same thing.

Correlation is powerful.  This is scary.

BTW, the WSJ is starting to see this too.


Alternative Fiscal Deficit and Debt – Scary Stuff

April 24, 2011

I am loving Shadow Government Statistics.  Very interesting reading.

One scary page was the 2010 Financial Statements of the U.S. Government.  The US government uses cash accounting – something a small business of 1-2 employees would use.  Meanwhile, in the real world, any company with more than 10 people uses GAAP accounting (or accrual accounting).

With GAAP, if you owe money in the future (like, umm, social security checks) to someone, you have to call it out on your financial statements now.  With companies using GAAP, this call-out usually becomes a liability (aka debt).  This attempts to clearly shows investors what the company’s future looks like.

But the federal government doesn’t do this.  If it accrues liabilities (like Obamacare or Medicare for baby boomers), the Feds don’t include these future debts in the financial statements. They just count the cash in and cash out in one year.  Like a babysitting business would.

This year, the Federal government ran a cash deficit of $1.294 Trillion.  An already disgusting number.  But, what if we required the Feds to use GAAP (just as GE, WalMart, and any other business does).  Oh, in that case, Shadow Government Statistics estimates the deficit this year at $5.3 Trillion (4X HIGHER!).

And what if we did this into the future?  Well, in that case, our already disgusting federal debt of $14.2 Trillion explodes to $76.3 Trillion in current dollars.

Who’s got that in their savings account?

Breakdown of Federal Personal Income Taxes – Yes, the Rich do Pay Taxes

April 20, 2011

Breakdown of Federal Personal Income TaxesA great graph and analysis from the Mercatus Center on the breakdown of federal income tax payers.  And, what do you know, the top 25% pay 86% of the income taxes.  86%!!!  Is this enough of their “fair share”?

At some point, the government will just shift the entire tax burden to the top 25% (or worse) and then it’s end game.  The bottom 75% will never ever ever vote to change the tax code.  The productive 25% reduces working and risk taking and economy (and country) collapses.

But, hey, at least those politicians got reelected.

Millionaires and Billionaires on Tax Day

April 18, 2011

Rather than breeding resentment against the wealthy, the president should use his bully pulpit to encourage people to emulate their success by working hard, increasing their savings, and eschewing debt. Unfortunately, those are the attributes that today’s income tax punishes, and on this Tax Day the president is pushing policies to make the situation even worse.


No Sorry, Taxing the Rich Won’t Solve the Problem

April 18, 2011

Good editorial from WSJ. Taxing the rich won’t solve the deficit/debt crisis. And besides, just how much do you want a person to pay before it crosses into immoral ranges?

The fix. Flat Tax please. The best way to make middle and lower class citizens care about politics more is to make sure they are “paying THEIR fair share” (which they don’t today).