Oil futures shot higher Tuesday, closing above 100 for the first time as investors bet that crude prices will keep climbing despite evidence of plentiful supplies and falling demand. At the pump, gas prices rose further above 3 a gallon.”
To read the complete article from the AP, click here.
Let’s see. Can we squeeze the American middle class anymore? It’s an important question because ONE OUT OF EVERY TWO AMERICANS falls into the category” Middle Class.”
Falling real estate prices.
Rising food prices.
Rising gas prices.
Rising unemployment.
Rising property, income, sales, you-name-it taxes.
Americans are now required to spend more, drive farther to work, borrow more, save less, and invest more than their parents 8212; just to maintain a slightly inferior standard of living.
U. S. citizens now owe a staggering 2. 5 TRILLION to creditors for everything from cars to houses. Credit card debt alone is now topping 1 TRILLION.
The U. S. now has a NEGATIVE savings rate. Americans, on average, now spend 102 for every 100 they earn. Think about those numbers for a second and how unsustainable they are.
But, then again, we learn to borrow and spend from our elected Mandarins in Washington DC. The U. S. government alone has spent more than NINE TRILLION DOLLARS more than it has taken in via taxes and fees.
Interest alone on the national debt each year is 400 billion and growing 8212; despite record low interest rates. Think of how many truck drivers, factory workers, teachers, and secretaries it takes just to pay interest on money spent decades ago. The Federal government is currently spending 1. 55 BILLION PER DAY more than it has in tax money in the till. Talk about digging the hole deeper 8230;.
The new budget proposed by President Bush is 3. 1 TRILLION. The new budget will DOUBLE the Federal deficit from a projected 200 billion to more than 400 billion. Why? Additional defense spending, Congressional foolishness like earmarks, and the ridiculous” stimulus package.”
Oh, before I forget, your share of the Federal deficit is 30, 536. That’s more than THIRTY GRAND for every man, woman, and child in the United States.
But that’s okay because the U. S. for the last fifteen years is the WORLD’S LARGEST DEBTOR NATION. When I was born America was the world’s largest creditor nation. People worked hard every day all around the world to pay obligations to make Americans rich. Now, it’s the reverse. Guess which side of the see-saw it pays to be on when you want to grow a prosperous country?
I could go on and on but what’s the point? The captain and his crew are not only asleep at the helm they are looting the wheelhouse. But the passengers don’t mind because they are too tired from their long commutes, second jobs, and penny pinching trips to Costco. Plus it’s more fun to sit in front of a new plasma TV bought at 24 interest and watch WWE wrestling than worry about the future of your country anyway.
You want some good news? Well, sort of. The U. S. trade deficit fell in 2007 for the first time in six years. We only bought 711 billion more in good and services than we sold. How is that good news? The number was projected to be larger but since the U. S. is slipping into recession Americans bought less stuff. Talk about mixed messages.
If you expect your local real estate market to thrive in these economic conditions you are crazy. I have never seen worse fundamentals for the U. S. economy. Never.
Investors long equities, beware.
Robert J. Abalos, Esq.
investinginland yahoo. com.
source
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