Jobs, Jobs! But, All the Wrong Kind

Since 2014, the U.S. has added 547,000 bartenders and waiters but lost 36,000 manufacturing workers, which are those well paying jobs.

Almost Over!

Ignorance is a Blessing?

“Speculators often prosper through ignorance; it is a cliché that in roaring bull market knowledge is superfluous and experiences are a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss.” Lance Roberts

Obama Refers to "Obamacare as a Starter Home." I Believe it is a "Train Wreck."

Medical Pricing Scam

Why does a "MRI" scan cost approximately $2,000 in the United States?  We are told they are expensive because of the technology cost to manufacture these machines, cost of doctors, and trained radiologists to read the images.  First, technology drives down the cost of production.  Think in terms off what you can purchase a TV and/or computer today from five or ten years ago.  Second, Japan manufactures MRIs, has doctors, and radiologists. In Japan, you can walk into a clinic and get your MRI scan done for approximately $150 in cash.  According to my math, that is a cost savings of 92.5%.  But, we are told that the $2,000 is reasonable and necessary.  In other words, we are fed a bunch of "BS," and, like sheep, we believe this crap.  Have you ever driven by your local hospital and noticed all the new construction and wondered how it can finance these structures?  Now, you know. And, the MRI cost in the United States is just the "tip-of-the-iceberg." Just think of all the services that the medical profession provides and the tremendous mark-up of those services.  If you want to true health care reform, you should be demanded that Congress look at these outrageous pricing practices. 

The "REAL" Federal Deficit for Fiscal 2016

For the fiscal year ended September 30, 2016, our government states the federal deficit was $590 billion.  That is, of course, the federal government spent $590 billion more than it took in for the fiscal year. By all accounts, the amount of tax revenue taken in by the federal government was a record. Our government simply cannot live within its “financial means.”  But wait, the federal deficit was a whole lot worse than the reported $590 billion.  Why?  Simply take a look at the total national debt on September 30, 2016 and compared it to September 30, 2015.  On September 30, 2016, the total national debt was $19,573,444,713,936. On September 2015, the total national debt was $18,150,617,666,484.  The difference of $1,422 trillion is the “REAL FEDERAL DEFICIT,” not the $590 billion. 

Please Don't Forget What Happened on September 11, 2001

10 Reasons the U.S. Govt Doesn't Deserve Your Tax Dollars

Investment Idea for the Week of September 5, 2016

 

AGQ -- Long  2x: Daily Performance of Silver (SLV) @ $49.68 or better.

President Obama Delivers on His Promise to Bankrupt Coal Industry

In 2008, Obama vowed to "bankrupt" the coal industry by imposing massive fines on greenhouse gas emissions. Well, in fact, six of America's largest public coal mining companies, including Walter Energy, James River, Patriot Coal, Alpha Natural Resources, Arch Coal, and Peabody Energy have all filed for bankruptcy over the past 2 years destroying billions in shareholder value and leaving thousands of people unemployed in Kentucky, West Virginia, Ohio, and Pennsylvania.  Per BLS data, coal-mining jobs in the U.S. peaked around 90,000 at the end of Obama's first term but have since declined by over 42% to around 50,000 as mining companies have filed for bankruptcy and shutteredmines. By the way, the median coal-mining job pays $21.63/hour. But you say, look at all the jobs the economy has created since 2008.  Yes, bartenders and waitresses at $7.25/hour, which equates out to be a 66% decline in disposable personal income.

The Problem with Governments

Governments are great at promising everything but are incapable of managing anything.

The Underlying Reason Why the Democrats Should Maintain the White House in November 2016

 In 2013, the top 1% of Americans in income paid 38% of all income taxes. The bottom 50% of income earners, half the nation, paid only 3% of all income taxes.  In 1980, the top 1% of income earners paid 19%; while the bottom 50% paid 7%. Therefore, over the past 33 years, the top 1% earners had their tax burden increase by 100%; while the bottom 50% had their tax burden decrease by 57%.   

If one belongs to that third of the nation that pays no income taxes but receives copious benefits, why would you vote for a party that will cut taxes you don’t pay, but take away benefits you do receive?

Recession Dead Ahead???

The following chart illustrates what happens to Federal Tax Receipts when an economy substitutes energy/manufacturing jobs for Wal-Mart Greeters, Bartenders, and Waitresses. By the way, the percentage decline in federal receipts portends to an economic recession on the horizon.

Houston, We Have a Major Economic Problem on the Horizon!

Karl Denninger, who is the author of the Market-Ticker, had some very sobering words about the Federal Budget over the next ten years. (Please read his last paragraph.) 
 
“Last year Medicare and Medicaid had an unbridled explosion in expense, as I've documented previously and which is a continuing pattern, not a one-year or two-year aberration.  This year, thus far through May, it has continued with the two programs up 8.93% in spending against this time last year.  And no, it's not just about people getting older; Medicaid block grants are up 5.5% this year so far.

Let me remind you that federal receipts (income  to the government, which the rest of us call "taxes") this year are up only 1.68%.
That's a growth rate of spending on these two programs that is 5.3x that of tax receipts.
These two programs are 32.5% of the total expenditures of the government thus far this year; 1/3rd, almost exactly.  Social Security increased 3.2% over last year; and while that exceeds the tax revenue increases as well it is not Social Security that will blow up the government and the economy, it is the medical scam system.

Folks, at a nearly 9% rate of increase (last year's full-year increase was 9.25%, or statistically identical) within the next four to five years the federal budget will collapse.
It will collapse because Medicare and Medicaid will grow to require $1,830 billion ($1.8 trillion) or an increase of more than $500 billion annually within the next four years while tax receipts will only accelerate at present rates by less than half that amount. Social Security will consume a huge chunk of that revenue acceleration all on its own.  
This will blow a roughly $400 billion and exponentially accelerating deficit hole in the budget; a 10 year projection will show that hole to be not a $400 billion deficit hole but closer to $2 trillion annually.

That is, within 10 years Medicare and Medicaid will require more than $3 trillion annually out of $3.8 trillion in projected federal revenue.  Adding in Social Security will exceed all federal revenue.  There is no possible way to fiscally survive this event and within the next President's term it will be evident to everyone in the market for both government and private securities along with all business executives that this outcome is inevitable.”