The 61% Ratio
August 20, 2009
We past the 61% time a week ago. A week ago, we started working for ourselves! It is an unfortunate fact. 61% of our early labor, wages, effort, and sweat goes to support governments at all levels. The first 222 days of the year we work to support stupid, lazy, idiotic bureaucrats, and the next 143 days we work for ourselves. Ever thought of it that way? Ever realized just how all encompassing governments are? Ever realize just how much effort you spend supporting gobbledygook at all levels?
Look at it this way: As of June 2009, 155 million people were laboring in the shrinking private sector of what remains of the American economy, with a per capita income of $39,751, or a per household income of $50,740. That 155 million worker figure is a bit misleading however, since only 20 million are actually working at construction or manufacturing. How many workers are selling stuff made in China? How many are accountants, trying to keep up with the latest tax codes? If we don't make what we use and sell, and spend untold billions of hours doing paperwork for the IRS, Medicare, or Medicaid, are those hours really productive? Is it really 'productive,' to sell foreign made items? I know, the store makes a profit and pays sales people a salary, but is it really good for America, not to make what it uses and sells?
These $50,740 per year income families were supporting 22.5 million government employees at all levels, and each one was making an average of $75,419 a year, according to Econowatch.
There are 3.9 million welfare recipients and 46.5 million Social Security recipients. These funds are paid directly out of the general fund, as there isn't a dime in the Social Security 'trust fund.' Only government IOU's.
There are 14.7 million drawing unemployment funds, with the time limit recently being doubled, plus many millions more to join them in the future, since the depression is no where near the bottom. How do I know this? The Wall Street Journal recently pointed out that not only are there 'ghost shopping centers,' with no tenants and in foreclosure, but hundreds of hotels and resorts are also in foreclosure. Even EMI, the music outfit, is under water. The bottom has not been reached yet, regardless of the stock market's idiocy, which will eventually be brought down when enough people realize the truth about the economy.
Everyone's bankrupt except the D.C. gang, and they can print all they want to pay their ever increasing bills. You say, "Wait a minute, aren't foreigners getting tired of the US debt, shrinking dollar, and lousy economy? Aren't they slowing down or even stopped buying our debt?" As Gary Cooper used to say, "Yup." No problem! The government will buy its own debt, which is called 'monetizing it.' They've already been doing it for some time, and there is no limit, unless they run out of ink. We're all paying for government laxness and the irresponsibility of 435 House Members and 100 Senators plus a non-citizen President, with ever increasing inflation and dollar devaluation. The more they print, the less they are worth and the less they will buy. History proves that once this starts, it has never been able to be stopped.
It's all so simple, and about as deceptive as a bank's balance sheet. With a bank, if you owe them, it's an 'asset,' and if you have money in a bank, it's a 'liability.' The 79 banks went under because they had far too many 'assets.' When D.C. fails to sell its debt, they print up the bonds and buy them themselves. $300 million last week alone...or was that billion? The whole thing is a charade, fraud, and hoax, as large as any Ponzi scheme in history. You think Madoff was a fraud? Try the D.C. Gang and their economics. The total unfunded debt approaches $100 trillion, an amount literally impossible to comprehend. The presses run merrily on, 7/24, while Joe Six pack is wondering if he can make his next mortgage payment, or if his home is worth as much as he owes on it. Each Thursday, the number of new applicants for unemployment payments are released. 576,000 last week; up from the week before.
How will it all end? Anyone's third grade arithmetic could figure it out. With an unpayable debt, government buying its own debt, and astronomical figures impossible to comprehend, you decide for yourself.
Want health insurance? Buy ten ounces of gold a year, if you're a youngster, and buy progressively more each year the older you get. You'll never have to worry about paying your medical bills!
When Obama visited Grand Junction Colorado last week, for a Town Hall, there were 3,000 there, and rumor has it that 2,000 Democrats were bussed in from Denver. When Sara Palan was in Grand Junction, there were 23,000 present and no one was bussed in!
The Wall Street Journal announces that this fall, a "Cash for clunker appliances" deal will be started. They'll be offering $200 for that old dishwasher, rather than my suggested $100. Surely the D.C. gang don't read my columns, do they? I guess they do. Why don't they try doing something helpful, rather than destroying everything they touch, including cars which run. How is destroying things, helpful to an economy? Thanks to typical government inefficiency, many car dealers have opted out of the 'clunkers' deals. Will appliance dealers also find that promised payments from D.C. take ages?