Today it was announced the economy sank at 5.7% this quarter (January to March). But don’t worry, economists are hopefuly the economy is falling apart at a slower rate in our current quarter; “Things are getting less awful,” said Bill Cheney, chief economist at John Hancock Financial Services (from the linked article above).
Meanwhile the Federal government added 12% OR $6.8 Trillion in new spending during 2008. If that number doesn’t jump out at you in giant flasing letters like this…
… then let me put it another way. That right there is $55,000 more in spending per household. We are heading toward bankruptcy people. Making the matter much worse because of rapid unemployment government tax revenue is sinking. In April the government lost 34% of revenue compared with a year ago. When taken into account with Obama’s spending plans this means massive federal budget deficits are on their way according to the Congressional Budget Office.
In short, something has got to give.
Oh & did I mention the dollar = becoming worthless?
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