I finished my income tax class today. I submitted my test and just received my results. I got a 97%. I’m very happy with that. Income taxes are easy for me. The forms make sense. Don’t get me wrong, I think we pay too much in taxes, but it’s not the income tax returns I disagree with, although I’d be just as happy with a flat tax. It’s the U.S. Congress that spends the money I disagree with. Since I’m saying something about it, I now have to vote. I’ve never voted in my life. But I haven’t complained in the past. I’m happy with my life. I have great friends. I enjoy getting out and doing things. We have good roads, streets, law enforcement that allows for it. I even enjoy staying home and reading novels. I love the little circle of my life. But last year a credit rating agency lowered the credit rating of the United States. Being a finance person, I’m now scared. What does that mean? The U.S. government has always been able to borrow money at the lowest interest rates in the world because we’ve ALWAYS paid our debts. For the first time in my life I’m afraid the U.S. will go broke ‘’in my lifetime.’’ Jerry O’Dovero, living with disabilities, quadriplegic, wheelchair
You should be afraid; if you have children or are younger, you should be very very afraid. I can guarantee if the government doesn’t cut spending, soon, it will be too late. It’s very simple the law of compounding interest. Interest rates are at all time historic lows. They’re like at a teaser rate on a credit card. Spend all you want at less than 2%, but when the trial period ends the rates will be at 15% to 20%. I’m not going to stay on this subject much longer either you believe me, you don’t or you are like I was and don’t care.
The government isn’t borrowing money just from China; the largest owner of the U.S. debt is the U.S. government. The Federal Reserve has been buying most of the government bonds the U.S. government sells so it can spend the money on crap most of us don’t benefit from. Basically the U.S. government issued itself a credit card and has been spending trillions and trillions and trillions on it. http://finance.yahoo.com/news/biggest-holders-of-us-gov-t-debt.html That’s how they’ve been able to keep the interest rates so low. The rest of the world is letting us get away with it because the world is financially barely above water. In a few years the rest of the world will have its own financial houses in order. If we don’t, we’re screwed. Interest rates on the U.S. debt are going up someday to levels the U.S. won’t be able to afford.
OK one last rant on my soap box and I’ll quit. Today the U.S. is the largest economy in the world. The U.S. consumes something like 25% of all the world’s goods and services with only 4.5% (300,000,000) of the world’s population. In 10 to 20 years, China will have a middle class alone of 300,000,000 people. And more billionaires then the rest of the world combined. India isn’t that far behind. What does this mean? The world will no longer have to kiss our ass anymore so we’ll buy their crap. Someday in the not too distant future the rest of the world will be rich enough to buy the crap they make themselves. They won’t lend us money at cheap or very low interest rates. They won’t have too.
My advice, the people that have been reelected term after term after term have created this mess. They spend our money like drunken sailors. WAIT, that’s an insult to drunken sailors. When drunken sailors run out of money they have the common sense to quit spending. DO NOT REELECT THEM at any level of government. Kick the bums out and put new bums in office. If we do this every election for the next 20 years they’ll get the message and start doing the right thing rather than selling their souls to get reelected.
Now, electing the president is a little different. The 22 amendment limits the president to two terms or 10 years. You should elect the president for two reasons; the rest of the crap is hot air. First, he/she is the commander and chief of our military. The most powerful military the world has ever seen. Is he/she going to keep us safe without starting WWIII? Second, the president appoints federal judges and most importantly the Supreme Court judges. The federal courts and especially the Supreme Court interpret the laws for as long as they stay a judge, in the Supreme Court, usually for the rest of their lives. You should pick a president with the same moral values you have regardless of their party.
Whether you believe me or not, these are the glory days. I’m going to finally start voting. I hope you do as well.