Debt Bombs Ticking Throughout US Heartland

The economy is not improving, instead in my opinion it’s getting worst. With record high unemployment and no jobs being created meaning less tax revenue from people working and Obama still spending like a fool I see very little recovery if any.

 Debt Bombs Ticking

The 50 states have racked up a record $2.4 trillion in bond debt during the economic downturn — the highest level of state and local indebtedness in history, economic analysts warn.

State and local bond debts now consume 22 percent of the nation’s annual gross domestic product (GDP) — a bigger slice of the economic pie than ever before.

How much more record debt international markets will tolerate is an open question. Municipal bond debt tends to be sold domestically, while many of the largest consumers of federal debt are foreign nations such as China.….Keep Reading and Video at SOURCE

CBO Warns Exploding US Debt a Huge Risk

The mushrooming U.S. government debt burden may cause a new financial crisis by spurring a sharp rise in interest rates, warns Doug Elmendorf, director of the Congressional Budget Office (CBO).

Countries such as Greece already have seen such crises, as their debt buildups sent interest rates soaring and drove away international bond investors.

The CBO projects that U.S. federal government debt will reach 62 percent of GDP by Sept. 30, up from 36 percent just three years earlier. Only once before has that figure surpassed 50 percent, during and just after World War II.

The debt, of course, is created by massive budget deficits, with the White House projecting a gap of $1.47 trillion this year. Read More At SOURCE

President Kennedy cut the highest income tax rate to 70% from 91%, revenues also rose. Income tax receipts from the top 1% of income earners rose to …

Tax reduction thus sets off a process that can bring gains for everyone, gains won by marshalling resources that would otherwise stand idle—workers without jobs and farm and factory capacity without markets. Yet many taxpayers seemed prepared to deny the nation the fruits of tax reduction because they question the financial soundness of reducing taxes when the federal budget is already in deficit. Let me make clear why, in today’s economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarged the federal deficit—why reducing taxes is the best way open to us to increase revenues. Keep reading at: President John F. Kennedy,
Economic Report of the President, January 1963

I sure would like to see a good debate on this issue, why is it President Obama does not get it in his thick head that big spending and higher taxes on the rich by the government will not help the economy or create jobs?

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