Tax (Photo credit: 401K)taxes (Photo credit: 401K)
US DEFAULT LIKE GREECE ?
SPENDING “SO MUCH MORE” THAN YOU MAKE – WHY TRUST ANYONE WHO DOES SO?
Obama proposes spending $3.8 trillion for the 2013 budget year, which begins Oct. 1, a slight 0.2 percent rise from expected spending for the current fiscal year.
DEFICITS: Obama’s budget projects that the deficit for the current year will total $1.33 trillion, the fourth straight year of deficits over $1 trillion.
TAXES: The budget would raise $1.5 trillion in new taxes over the next decade, mainly by letting Bush-era tax cuts expire at the end of this year on families making more than $250,000 a year. Obama also recycled a past proposal to limit the deductions wealthy taxpayers can claim and certain tax breaks for corporations, including oil and gas companies. Obama would also raise money by imposing a rule named after investor Warren Buffett that would seek to ensure that wealthy people making more than $1 million a year pay at least 30 percent of their incomes in taxes.
JOB GROWTH: Obama is seeking more than $350 billion in measures to boost economic growth and job creation in the short term, including $50 billion in upfront investments for transportation projects, $30 billion to modernize at least 35,000 schools and $30 billion to help states hire teachers, police and first responders. Republicans, unhappy with past stimulus programs, blocked these proposals last year.
EDUCATION: The budget seeks $850 million for the administration’s “Race to the Top” competition to provide grants to schools undertaking approved reforms and $8 billion to support efforts by community colleges to train 2 million workers in high-growth industries.
MILITARY: The Pentagon’s overall spending would drop in 2013 as the military begins an effort to save about $260 billion over the next five years, in part by slashing the number of troops, ending the wars in Iraq and Afghanistan and making limited reductions in weapons systems.
HEALTH CARE: The administration seeks to slow the growth in Medicare and Medicaid by about $360 billion over the next decade, but the Obama budget avoids the radical overhaul that House Republicans are pushing and that deficit commissions have said will be needed to get control of the biggest driver of future deficits.
REACTION: Republicans, who oppose tax increases to deal with the deficit, criticized Obama’s budget as offering recycled proposals that have been rejected in the past. They also charged that Obama is too timid in his proposals to get control of the growth in government benefit programs such as Medicare.
We mapped out the risks facing business and in investors at the first of the year on our blog. You can print them.
The Greece EU situation remains fluid as contagion – the sperad of the default of sovereign nations – is significant – credit rating downgrades from the UK to SPAIN hold imposisble new challenges to IF the EU can remain united as a block – due to the trillions upon trillions more required to bail out nations spending so much more than they earn. The unsustainable credit matrix keeping all such nations states and provinces afloat – are now unraveling. The markets are too smart and to aware to fund insolvent borrower where the court of last resort – say the EU itself – becomes just another bad bet – another default agency.
The promise- the one promise – a nation will pay one dollar on its dollar debts – is now shattered from Greece – why would other nations pay one dollar on the dollar next – why indeed.
The system functions on trust.
Trust has been broken.
What will happen next is not going to be pretty.
In our opinion.
We believe the old order is dying and a new regimene is being born. We are working advocating COOPERATIVE CAPITALISM to repair the abuses of Competitive abuse systemically that inflicts such pain on institutions and individuals. There IS a better way and we are working to see a better way materalize.
Investors are advised to invest in inflation proof assets like real estate – the USA remains the superior real restate market to invest into – shed gold – buy quality real estate – would be our suggestion with your licensed professional being your guide.
Berny Dohrmann – Chairman
{ 2 comments… read them below or add one }
Why real estate Berny?
There is substantial evidence to support that all prices in major US markets are still 1 standard deviation ABOVE normal.
No observant investor could possibly support getting into a paper asset like Real Estate and expect it to hold any value at all.
Such a broad brush suggestion as selling gold for US real estate is unwise in my view.
Trust me – fortunes will be made – from here forward – the best place to invest on earth – is STILL – EARTH – no adult will match the lower price ( often under construction replacement cost ) for good real esate in 2012 – at the low low interest – everyone will look back and wish they had moved – taken risks to win – in these markets – the market of maximum adult opportunity is 2012 to 2015 – use it or loose it. Venture space is the only card that trumps real estate – new CROWD FUNDING will help everyone partciipate in venture space more fully in 2012 – thanks to the US Congress. We’ll keep a light on for ya.
Berny