Global Economy Bursting?

[Workbox]

Treasury Auctions To Take US Over Debt Ceiling On Monday

http://www.nasdaq.com/aspx/stock-ma...ctions-to-take-us-over-debt-ceiling-on-monday

Wonder if interest rates will show any affect?

Good point! One of the charts that I subscribe too has the "SPY" turn negative. I think I am going to plan for a correction to come soon.

 

[Randolph Kinney]

Rising food and gasoline prices drove the annual inflation rate to 3.2% in April.

The supply of T-bills will continue to drop, anchoring rates in the shortest part of the Treasury yield curve near zero no matter what else happens. That means no matter which way consumers think inflation is going to go this year and regardless of worries about sovereign debt fueled by continued instability in the euro zone and political theatrics in the United States, short-term rate investors are going to cling to whatever T-bills they can find.

Long term rates may rise as the Treasury shifts to rollover maturing debt to longer maturity. That may spook the stock market.

 

[Randolph Kinney]

Many seeing homes more as liabilities

http://www.chron.com/disp/story.mpl/business/7566068.html

 

[Big ole Boy]

Use Starke as a macrocosm .

Starke, Bradford County .......... 80% of the income comes from government jobs ....

... look at our real estate market ... a joke .......

.... do any of these forecasts include a shrinking in government spending? including towns and states .......... ........... I am thinking ....... NOT

 

[Randolph Kinney]

The Biggest Myth About QE2 Gets Busted
Read more: http://www.businessinsider.com/char...mpaign=Clusterstock_COTD_051811#ixzz1Mk2HerWo

All that's happened from QE2: By bidding up Treasuries, investors have been forced to put their money elsewhere (stocks, commodities, etc.).

 

[Terrel L. Shields]

The oil business will draw $3plus billion in tax breaks this year....the alternative energy business (2% the size of conventional oil in sales) will enjoy $10 billion in subsidies. Ethanol subsidies alone will top what the oil industry gets. Fine, take it away. The cost will get slapped onto our gas bill....but really, isn't it time to rethink all subsidies including home mortgage? Why not eliminate all such subsidies and forbid any state from offering tax breaks for a business to move there...just lower the rate for everyone.

The fact is our entire tax structure is geared to offering incentives to one party or the other. Interesting letter to editor in our papers a few days ago that pointed out this social engineering meant our tax RATES were higher than Europe, which is true. But the overall tax BURDEN was less than Europe. Industries that have been unable to benefit from such incentives that are out there are moving offshore...those who have been able to mine these lucrative tax deals are doing very well indeed. HP in Arkansas, Toyota in Mississippi....all these "plum" high tech jobs come at a huge cost to taxpayers nationwide and particularly in the very state that draws them.
Think how much it costs to go to a professional sports event and how much of your own tax dollars were spent building that facility. We have made the tax system a joke by subsidizing the winners and pillaring the losers.

 

[Randolph Kinney]

The reality for taxes: deductions and subsidies are going away. Tax rates go down at first in exchange, but it won't be revenue neutral.

The problem has been and will be, spending exceeds revenues.

The structural problem with the budget that can't be solved is the interest on the national debt and Medicare-Medicaid spending along with Obamacare.

Companies will continue to go off shore.

 

[Randolph Kinney]

The principal driver of the increase in TrimTabs Dependency Ratio is the rapid rise in government wages and salaries and social benefits over the past decade. From 2000 to 2010 private sector wages and salaries grew 29%, whereas government wages and salaries plus social benefits grew 89%, nearly three times the growth rate of private sector wages and salaries.

The government is playing an increasingly dominant role in the economy by borrowing massive sums to fund social welfare programs. This borrowing is financially unsound if not morally wrong. Instead of creating new wealth, it is simply piling more debt on an economy with the same capacity. At some point, the carrying capacity of the economy will be exhausted. We believe the economy is at or near that point.

 

[Couch Potato]

The reality for taxes: deductions and subsidies are going away. Tax rates go down at first in exchange, but it won't be revenue neutral.

The problem has been and will be, spending exceeds revenues.

The structural problem with the budget that can't be solved is the interest on the national debt and Medicare-Medicaid spending along with Obamacare.

Companies will continue to go off shore.

You forgot Social Security in your list.:new_all_coholic:

 

[Randolph Kinney]

You forgot Social Security in your list.:new_all_coholic:

No, Social Security is not the magnitude of the problem. It can be fixed, really easy.