Thursday, September 9, 2010

Intervention: Addicted to Credit

The federal deficit has breached 10 percent of GDP four times in US history: during the Civil War, during World War I and World War II, and in aftermath of the financial crisis of 2008.




1970

Pensions: $32 billion

Health Care: $22 billion

Education: $56 billion

Defense: $95 billion

Welfare: $21 billion

Protection: $7 billion

Transportation: $22 billion

General Government: $7 billion

Other Spending: $36 billion

Interest: $19 billion

Balance: $4 billion

Total Spending: $322 billion

Federal Deficit: $3 billion

Gross Public Debt: $514 billion

source: usgovernmentspending.com





2010

Pensions: $986 billion

Health Care: $1,107 billion

Education: $1,026 billion

Defense: $896 billion

Welfare: $762 billion

Protection: $351 billion

Transportation: $312 billion

General Government: $125 billion

Other Spending: $526 billion

Interest: $304 billion

Balance: $17 billion

Total Spending: $6,413 billion

Federal Deficit: $1,556 billion

Gross Public Debt: $16,635 billion

source: usgovernmentspending.com





Experience teaches only the teachable. The impact of irresponsible spending policies of the U.S. will have far reaching effects for generations. Historically this has led to massive economic problems.



Two areas to take advantage of during this artificial propping up of the economy is to buy commercial real estate while prices and rates are still CHEAP and buy gold!.

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