Interesting comparisons – where is the U.S. going?

Have you seen the movie, Coriolanus? That’s the story of a Roman general who despised the general population, but loved winning wars and battles for Rome. He admired only the patricians and the Senate, which was the supreme governmental body at the time, and feared both would be over-run by the mobs, represented by the Tribunes, who were elected by the people of Rome. Shakespeare was depicting the end of the Roman Republic in this play, now a movie.

Did you see Madonna’s half-time show during the Super Bowl this year? The show started with what looked like hundreds of Roman soldiers stolidly, deliberately, inexorably marching. But where were they going? Perhaps some numbers just reported by The Sovereign Man point the way:

US monetary base as of January 1st each year [Source: St. Louis Fed]
2001: $  616.7 billion
2002: $  673.7 billion
2003: $  719.6 billion
2004: $  756.8 billion
2005: $  793.8 billion
2006: $  825.2 billion
2007: $  843.5 billion
2008: $  851.4 billion
2009: $1,730.2 billion
2010: $2,010.1 billion
2011: $2,057.1 billion
2012: $2,647.7 billion

US federal government budget outlays. [Source: CBO, OMB]
2000 budget: $1.9 trillion
2001 budget: $2.0 trillion
2002 budget: $2.2 trillion
2003 budget: $2.2 trillion
2004 budget: $2.3 trillion
2005 budget: $2.4 trillion
2006 budget: $2.7 trillion
2007 budget: $2.8 trillion
2008 budget: $2.9 trillion
2009 budget: $3.1 trillion
2010 budget: $3.6 trillion
2011 budget: $3.8 trillion

Americans on Foodstamps. [Source: USDA’s Supplemental Nutrition Assistance Program]
2007: 26.3 million
2008: 28.2 million
2009: 33.5 million
2010: 40.3 million
2011: 44.7 million

Food banks are reporting huge increases in consumption of their food stores. Unemployment benefits are being paid up to 99 weeks! Student debt, a startlingly large amount of which is being undertaken by people over age 35, is increasing faster than the economy is growing. Shaky mortgage debt is still huge.
Federal spending doubled in eleven years. Wasn’t that supposed to cure the economic ills above?

We are paying people not to work and not to worry about food or housing, while encouraging them to loaf around in “schools,” taking on debt many probably have no intention of paying off, if they even understand that they are taking out loans. Many people today view all government largesse as free money.

In the past, we could say, taxpayers were paying for this, but with fed govt deficits, it is more accurate to say that the fed govt is printing money to pay for these huge welfare programs. Hence, the destruction of our American currency, actually, a far worse action.

There is more bad news, but that’s enough for today.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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