Its hard to feel optimistic about the direction of our country. It seems like all politicians want is to stay in power. One thing I have noticed recently is we still call politicians by the title they held while in office. Even if its 20+ years removed. A political office is not a life long title. They are elected to that position and when they are fired or quit they no longer hold the position. Why do we equate senators, speakers, congressmen titles like royalty? Once you're done being a Governor then you go back to being Sir or Mam. Your political office is not a life long title. Its an elected position that you hold for that term only.
Combine that with the horrible economy, debt crisis, healthcare mandate and Europe collapse we are in for some tough times.
Here are a few snippets from the news to put you in the mood.
Another U.S. Credit Rating Downgrade Is Likely
On August 5th of last year ratings agency Standard & Poor's downgraded the credit rating of the U.S. Federal Government from AAA to AA+. Though widely telegraphed the news sent stocks tumbling with the benchmark S&P 500 (^GSPC) index dropping 6%.
Despite vows at the time to change their profligate ways, the U.S. has, if anything, gotten even more fiscally reckless in the nearly 11 months since the downgrade, raising the questions as to whether or not the existing AA+ rating is at risk. Robert Prechter of Elliott Wave International says such another downgrade is "pretty likely, eventually" but regards ratings changes as the least of America's problems.
At the heart of Prechter's concern is the U.S. borrowing costs. Despite the hand-wringing of last August, bond yields have actually dropped since then. At time of S&P's downgrade the yield on the 10-year treasury (^TNX) was 2.94%. Today the rate stands at 1.58%.
Regardless of what S&P says about the U.S. credit rating, investors still regard our debt as a safe haven. But Prechter thinks that's about to change. "After 31 years the bond market may be ending a very long term uptrend and getting ready to turn down," he says, "that means higher rates."Once borrowing costs go higher the Federal Reserve will have few options left for fighting it's real problem: deflation. Prechter notes the current economic environment includes historically low rates, a 40% decline in real estate, a 40% drop in commodities, low money velocity and last month's drop in CPI. "These things are a surprise to most people," says Prechter "but deflation explains them all."
http://finance.yahoo.com/blogs/breakout/america-likely-see-another-rating-downgrade-prechter-134922494.html
The Individual mandate is a TAX
After months and months of focusing on Anthony Kennedy as the weak link in the conservative chain at the Supreme Court, it turns out that Chief Justice John Roberts was the one the Right needed to fear. With the more centrist Kennedy dissenting, Roberts signed off on the individual mandate in ObamaCare, not as part of Congress’ power under the Commerce Clause, or even the ludicrous reference to the “Good and Welfare Clause” from some Democrats, but from the more mundane and substantial power to tax. The opinion actually ruled that the mandate violates the Commerce Clause, but as a tax that no longer matters.
It’s an interesting argument, but one that should have Americans worried. Basically, this is a tax that you have to pay to private companies. For all of the screaming the Right did over single-payer — and for good, outcome-based reasons — at least the money paid by taxpayers would go directly to government . The Supreme Court has signed off on what is, in very practical terms, a tax levied by the insurance industry on Americans simply for existing. It’s an amazing, and fearsome, decision that really should have both Right and Left horrified.
Nevertheless, this is the law of the land. We can now look forward to taxes levied by the auto industry for not having bought a new car in the last seven years, the liquor industry for buying too few bottles of wine to maintain your health, and by the agricultural industry for not buying that damned broccoli after all. We might even have Obama attempt to impose a tax for not buying enough contraception; we can call that the Trojan tax.
http://hotair.com/archives/2012/06/28/mandate-upheld-what-now/
U.S. Per Person Debt To Grow 7 Times Faster Than Italy’s
The Senate Budget Committee released a new chart on Wednesday that projects U.S. per person debt will increase “7 times faster” than the corresponding per person debt in cash-strapped Italy.
According to the chart, Americans carry a burden of $52,900 per person based on a combination of federal, state and local gross debt per person “in nominal U.S. dollars.”
Meanwhile, each Italian carries a debt burden of only $41,200.
In five years, the debt burden on each American is projected to grow to $67,500 compared to $43,200 for Italians.
http://www.newsmax.com/Newsfront/us-debt-grows-faster/2012/06/20/id/442950
