Saturday, May 19, 2012

Lost in the Woods

In California, tax income shortfalls have increase from 9 billion to 16 billion in 3 months. Governor “Moonbeam” Brown has proposed new bond issues to raise the revenue. Does anyone think that we are in a better position now to pay more in taxes than we were, when times were good? The logic escapes me. The State governments have to have a balanced budget. And the way to do that is by hook or crook—(Also known as creative financing). The trouble is, we have run out of hook and crook. Kind of looks like Moonbeam hasn't run out of rope to smoke - - yet.

If we shift to Greece, there is all of this doom and gloom. Why? If Greece repudiates its debs and gets off the Euro - - hey, we have another Iceland (A country that can now live within its means after telling the world to “go fly a kite”). Of course the people who loaned the money have a different perspective on this. The rich euro counties loaned money to their poor neighbors without regard to their ability to repay the loans. Mobilizing the military to get them to pay, would solve the European unemployment problem and bring in some cash--hmmm.

In the United States, the government has decided that if you bought a home with nothing down, you entitled to government subsidies to help pay it off. No Money down for a GSE home. And if you are upside-down they will forgive that part of the loan. Of course if you buy a Fannie or Freddie home, no money down, and need to sell right away, you’re already upside-down (with the 6 percent Realtor's fees). On the flip side, if you lose your job, you can live in the home rent free for two years while they go through the foreclosure process.

The debts are real, and the expectations that the debtors will pay back the loans, is nothing more than wishful thinking. The governments of the world have only postponed the final outcome. Reality is just around the corner. To quote Obama, “We are not out of the woods yet,” - - I wonder if he’s noticed that the smoke is getting thicker?

Copyright 2012 by Jim Brubaker

5 comments:

AIM said...

The capitalists, socialists and communists have made a total mess of things over the last 100 years.

The USA is fast slipping from a social democracy towards fascism.

All of the deceit, wrong thinking, self-serving actions and corruption have brought us to the point where we will soon have collapse and dysfunction on many levels... especially social and economic levels.

We have no leaders. Just self-serving career politicians, clowns and buffoons... and those who work towards a one world government and currency.

This will all have to go through an unbearable destruction cycle before a new (and hopefully workable) series of systems can arise. Unfortunately we will have to suffer through this transition period.

I'm tired of witnessing all of the idiocy and stressing over my net worth, my future, etc.

I've gotten to the point now where my policy is basically to ignore it all and enjoy my life. "Don't worry, be happy" is my new motto.

If feels good to have this new mindset. Feels good to be insouciant.

Whatever happens (and no one can really predict accurately how it will all go and what conditions will arise) I'll deal with it.

Going to enjoy my home, my wife, walks, good books, playing music, watching educational and uplifting DVDs, friends and family, and so on.

Going to celebrate my life and be grateful. Not gonna let the bastards bring me down.

AIM said...

And I should add...

I will have no problem moving out of California to Nevada or some better location.

Tyrone said...

We have no leaders. Just self-serving career politicians, clowns and buffoons... and those who work towards a one world government and currency.

Well said. I couldn't agree with your comment on "leaders". It seems as though the word is being used more and more. Perhaps it is to compensate for the real lack of leadership. You know... say it enough and people will start to believe it. At my company, we no longer have managers, we have "leaders". I said to a vice president that the word "leader" is becoming a four-letter word. I think he understand where I was going, but the other "leaders" in the room were fk'n clueless.

Anonymous said...

Jim,
This is a good writing and a good thread. Don't know why more people don't contribute.

Obama doesn't even know that there are woods let alone smelling the smoke. He's on another planet with an agenda that has nothing to do with any form of nationalism and making America the great country that it has the potential to be.

Wittingly or unwittingly, he's a traitor, just like the long list of presidents that preceded him. And all the Congresses as well.

Tyrone said...

Typo:
Meant to write:
I couldn't agree more with your comment on "leaders".
* need more proof-reading