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3345roc
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Posted on Mon, Jan 13, 2014 08:14

I posted this on Bernie's PTSD blog but it seems to have disappeared....

Making some Braised Pulled Pork Shoulder for the family dinner tonight.  It takes 3 1/2 to 4 hours to cook and I was thinking, of all the freedoms we have in America where does the right to Economic freedom rank.

We all know that the Federal Debt ended the year at $17.2 Trillion, $54,000 for every person living in the US, 102% of GDP and about 6 years worth of Federal Revenues.  That's pretty bad but the economy is recovering slowly despite the ineptitude of the Government... but is that the whole story?

Corporations have to account for future obligations such as pensions and retirement benefits. The Government isn't bound by these same rules when preparing the budget but it is accounted for in the Financial Report of the US Government.  You might have heard the term "unfunded public mandate" with regard to city bankruptcy or states being unable to honor employee pensions.  That happens when new contracts are signed with employee unions or others, administrations change and no money is set aside to cover those financial contracts.

I don't recommend you read the 2012 because we know for a fact that lawyers and accountants have a language that few of us understand.  Hell, lawyers even use weird size paper that doesn't fit in filing cabinets.  I heard that if you add up all the pages of the ACA and all of the pages of the regulations that the minions in each Federal department wrote to define the process you would have approximately 20 "War and Peace" novels. I hardly was able to get through one.

Ant way... if you do add up all of the unfunded mandates at the Federal level.. employee pensions, military pensions, Social Security and Medicare and a whole lot of other accounting minutiae...

 

The real Federal Debt would be $67 Trillion

 

 

 



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SundanceWoman
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Posted on Sat, Jan 25, 2014 20:38

Holy cow!


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3345roc
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Posted on Mon, Jan 20, 2014 15:49

Quoting Diana3316:

Ok...maybe I'm too simple to understand.  Our whole economy is built on consumption.  We don't actually make anything any more.....except perhaps weapons.  We've allowed corps to move all our manufacturing overseas and bring the products back here to sell.  So if we cut back on our consumption and stop buying.....how does that help our economy mend and improve?  Seems like that would just slow it down more.

 

I think the our trade deals with foreign countries has been an absolute disaster!



Consumption does account for 70% of GDP but you can't discount private sector investment, government spending on goods and services as well as the difference between exports and imports( which is very small right now).  Consumption is down and corporations are holding onto cash because of the uncertainty this admin has fostered.  If the stimulus money was really spent on shovel ready projects things might be a bit better.

 

The economy is growing slowly despite the inepitude of the admin and the dysfunction in Congress.  It will continue to do so this year but wages will remain low because of supply and demand.

 

 

 

 



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Diana3316
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Posted on Sun, Jan 19, 2014 09:19

Ok...maybe I'm too simple to understand.  Our whole economy is built on consumption.  We don't actually make anything any more.....except perhaps weapons.  We've allowed corps to move all our manufacturing overseas and bring the products back here to sell.  So if we cut back on our consumption and stop buying.....how does that help our economy mend and improve?  Seems like that would just slow it down more.

 

I think our trade deals with foreign countries have been an absolute disaster!



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3345roc
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Posted on Sat, Jan 18, 2014 09:16

Quoting Florasab:

I think its the technology, we spent big on tech, like phones, and the rest always updating and running big bills , kids have games, all the wants that we dont necessarily need, lifestyle,  and the convenience of re using your credit cards once you paid it and the rest goes on and on



$67,000,000,000,000.00.  Do you think if we cut back a bit on our credit card that'll help the Fed get out of debt?  You might have a furture in government.



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Florasab
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Posted on Sat, Jan 18, 2014 01:35

I think its the technology, we spent big on tech, like phones, and the rest always updating and running big bills , kids have games, all the wants that we dont necessarily need, lifestyle,  and the convenience of re using your credit cards once you paid it and the rest goes on and on



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MizzSunShineHere
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Posted on Wed, Jan 15, 2014 22:26

Yes I agree....  "Cash is King!!"   :-)



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3345roc
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Posted on Wed, Jan 15, 2014 20:33

Quoting Linglit:

It's all about "robbing Peter to pay Paul" but when will it end?!  Perhaps soon as things tamper down to the bare end. I mean how much longer can our country (the USA) continue to print "paper" money and it will be worth nothing if we don't have the gold to back it. I believe this is a FALSE economy that we are all living in! I just wonder how much long it's going to hold up. The stock market has been up and down so it's unsteady. But we all know at any time it can crash, just a matter of when.

The truth about debt is EVERYONE has been living well above their means. They can't afford their life style! To many people use credit cards as a form of payment instead of saving up their cash to pay for things. What happened to the simple life!? ( A regular affordable home and car!) That's what WE ALL need to do to get things back on track. Live within your means of what you really can afford and be PROUD of it!

Keep it simple!  :-)

 



 

The only answer I could come up with is when Peter goes bankrupt.  Luckliy the economy is slowly recovering despite the ineptitude of the Obama administration.
I have more faith in the Federal Reserve than I have in the Fed.  Printing more money would be inflationary and tha's especially problematic when the economy is depressed and so many people are in need.  Be careful renegotiating the Nat Gas contracts.
The markets were pretty consistent last year and all the indices were significantly up.  I think this year will be up and down and I'd say buy on the downs.  I retired early and the reason was absolutely no debt... no  mortgage and I never had a car loan.  Cash is King!! 
Simple is good.



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MizzSunShineHere
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Posted on Tue, Jan 14, 2014 14:39

It's all about "robbing Peter to pay Paul" but when will it end?!  Perhaps soon as things tamper down to the bare end. I mean how much longer can our country (the USA) continue to print "paper" money and it will be worth nothing if we don't have the gold to back it. I believe this is a FALSE economy that we are all living in! I just wonder how much long it's going to hold up. The stock market has been up and down so it's unsteady. But we all know at any time it can crash, just a matter of when.

The truth about debt is EVERYONE has been living well above their means. They can't afford their life style! To many people use credit cards as a form of payment instead of saving up their cash to pay for things. What happened to the simple life!? ( A regular affordable home and car!) That's what WE ALL need to do to get things back on track. Live within your means of what you really can afford and be PROUD of it!

Keep it simple!  :-)

 



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