4 Quarter GDP Up by 3.2%??? Clear The Smoke And Look For Yourself.

Well, the government media folks are pumping up the 3.2% increase in GDP, but they aren't telling you the whole story, or as the late Paul Harvey would say..."the rest of the story".

Read these two short articles and determine for yourself what is really happening.

The first by CNBC
Economy Grows at 3.2% Pace, Pushed Up by Sales Spike

And the other by The Market Ticker Guy, Karl Denniger
4Q GDP: Is That Daylight, Or A Headlight?

It is explained quite well by Mr. Denniger....

Social Security In The Red

It wasn't supposed to happen this soon. In 2010 the Social Security Trust Fund went in to the red, but it was expected to return to the black until 2016. It is now being reported that it will stay in the red and will go bankrupt by 2037. This year alone, it is expected to run a $45 billion deficit.

Don't count on Social Security to be there when you need it.

Detroit Public Schools may need to close up to half of their schools.

DPS considered but declined to file for bankruptcy in 2009. In the past year, debt in the district has increased by more than $100 million, brought on by a mix of revenue declines in property taxes, reduced state aid, declining enrollment and an unplanned staffing surge this past fall.

Firefighters began turning in their helmets and police officers their badges Tuesday as part of deep municipal layoffs destined to further erode the quality of life in Camden, already one of the nation’s most impoverished and crime-ridden cities...As many as 383 workers, representing one-fourth of the local government work force, are expected to lose their jobs, including about half the police force and one-third of the city’s firefighters...Located directly across the Delaware River from Philadelphia, Camden is rampant with open drug-dealing, prostitution and related crimes. More than half of Camden’s 80,000 residents, mostly black and Hispanic, live in poverty.


We will be seeing more of this in the future. What do you think the crime will do in Camden?

Illinois Raises State Tax by 66%

The Illinois government has decided to raise State taxes 66% from 3% to 5%. Now that doesn't sound like much, just 2%, but it will take more money fro the people that are already strugling. I hope we don't see Federal taxes rise, although I feel it will be likely that they will at some point.

Illinois Lawmakers Approve 66% Tax Hike.

http://video.chicago.cbslocal.com/global/video/popup/pop_playerLaunch.asp?vt1=v&clipFormat=flv&clipId1=5461547&at1=Political&h1=Illinois

Another One Bites The Dust

I'm afraid we will be seeing four or more cities/states defaulting on their obligations.

The city of Chowchilla defaults on a bond.

But at least one business is doing well...

"But his Brock Locksmithing has weathered the storm, meeting a frenzy of demand from lenders. "I'm optimistic," said Brock, 66, who was on his way out the door Thursday to re-key another foreclosed house for another bank. "But I think it's going to take a little while."

What Will Happen?

Have you thought about what will happen if Congress does not raise the National Debt limit? There will be cutbacks that will have to be made. We will not be able to continue to fund many programs...Social Security, Medicare, Medicaid, Food Stamps, etc as the list could go on. Where or where will the cuts be made if that happens. Wherever the cuts are made, even if it is a little from each entitlement program, it will be painful. There are going to be people that are going to be very upset. There will be people that will be violent. Are you prepared for that if it happens?

You might say, well then we should raise the limit. Well, where do we draw the line?  $15... $17... $20 Trillion. Whenever we come to grips that we have to draw the line, whatever the number, it will be painful. The day is coming, I believe, that America will have some hard choices to make. It won't be pretty.



Get prepared.

$14 TRILLION NATIONAL DEBT!!

How long can it continue. The CONgress will be voting soon to raise the National debt level which currently sits at $14.3 Trillion.
http://www.usdebtclock.org/