by Jerry Robinson | FTMDaily Editor-in-Chief
HOUSTON, Apr 5
March Madness Strikes Washington…
The fiscal insanity in Washington is on clear display for all to see. According to a report issued by the U.S. Treasury Department, the Federal government collected $194 billion in tax revenue during the entire month of March. Yet, during the same month, the Federal government reported $1.1 trillion in expenses. An in-depth article released by CNSNews.com headlines the problem well: “March Madness: U.S. Government Spent More than Eight Times its Monthly Revenue”
Among the expenses for the month of March…
U.S. Treasury redemptions… $705 billion
Social Security payments… $50 billion
Medicare payments… $48 billion
Defense contractors… $38 billion
Medicaid payments… $22.5 billion
How is the government able to stay open for business despite spending eight times it’s monthly income? By borrowing more money. During the month of March, the government reportedly sold $786.5 billion in new government debt securities. And the ponzi scheme continues…
GOP Cuts and Gov’t Shutdown Loom…
While the Federal debts and deficits spike, our nation’s hard-working representatives in Washington are on edge this week as a government shutdown looms. The debate apparently is a tough one. The “spendthrift” Democrats appear willing to cut only around 0.5% from this year’s budget. On the other side of the aisle, however, the “cost-cutting” are demanding that the American public deserve a full 1% reduction of this year’s Federal budget. If neither side budges, the debate will lead to a government shutdown this Friday.
And now… The GOP is proposing $4 trillion in cuts from the Federal budget over the next 10 years. The cuts would amount to just less than 10% from the projected $46 trillion in Federal spending over the next decade. These types of cuts certainly mark a step in the right direction for the country.
Also In The News…
1. BOOMER FEAR: The first big wave of Baby Boomers are beginning to retire and years of fiscal mismanagement and bad financial advice is just starting to sink in.
2. MOODY ON PORTUGAL: Moody’s cut Portugal’s credit rating down another notch this week warning that the country needs an immediate bailout.
3. CHINA RATE HIKE: For the fourth time since October, the inflation-fighting Chinese central bank has announced another quarter percent interest rate hike. The one-year lending rate now stands at 6.31 percent and one-year bank deposits are at 3.25 percent.
4. DEFAULT SCARE: U.S. Treasury Secretary, Tim Geithner, is warning that the Federal government will reach its legal borrowing limit on May 6.
5. BERNANKE SAYS: U.S. Federal Reserve Chairman, Ben Bernanke, said this week that he expects to see a very high rate of foreclosure starts in 2011.
I have received quite a few emails regarding my commentary from yesterday entitled: “America’s Entitlement Mentality is Killing Our Nation.” The commentary also includes the #1 way to build wealth in this country, which many people commented on in their emails to me. Thanks for the emails, although some of you weren’t so nice… You can either leave your comment below the article or you can send your thoughts privately to me at firstname.lastname@example.org
Why So Serious?…
Its time to laugh a little. Here’s a sampling from some of the late-night jokers.
“According to a poll, 55 percent of college students approve of the job President Obama is doing. That may change once they graduate and try to find a job.” –Jay Leno
“TLC will start airing new episodes of “Kate Plus 8.” And they’re going to keep airing them until Gadhafi agrees to step down from power.” –Jimmy Fallon
“If the government shutdown occurs, there may be a freeze to all new wars in the Middle East.” –Jay Leno
“A woman in the United Kingdom left her daughter out of her will because she didn’t like the name of one of her grandchildren. That means no inheritance for the woman, or for her baby, little “Grandma Sucks.” –Jimmy Fallon
Cartoon of the Day…
Jerry Robinson – FTMDaily.com
Jerry Robinson is an economist, published author, columnist, international conference speaker, and the editor of the financial website, FTMDaily.com. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour long radio show dedicated to deciphering the week’s economic news.