Economic News: Economy Slowing, Debt Accelerating

obama-deficit3

Recently, a guy who never had a real job until a mind-bogglingly unaware and unconcerned nation elected and then re-elected him President  said that the US economy was ready to take off.  Today the Federal Reserve, stacked to the gills with high level economists and regional bankers, said “Um, no, not really.”

The Federal Reserve tweaked its forecasts for the U.S. economy Wednesday, predicting slightly slower growth ahead and barely any change in the unemployment rate next year from current levels.

The central bank predicts the U.S. economy will grow 2.3% to 3% next year, down from its September forecast of at least 2.5% growth.

The weak prediction fueled the Fed to expand its stimulus program, in an effort to improve the job market in particular.

Meanwhile, the Fed expects the unemployment rate will fall to between 7.4% and 7.7% by the end of next year, marking little improvement from where it stands now.

In other news, in November, the second month of the government’s new fiscal year, the federal budget deficit increased 15% from last year to $172 billion.

In November, the government spent $334 billion and took in $162 billion in revenue.

For the fiscal year to date, the deficit is up 24% compared to the first two months of fiscal 2012.

If we confiscated ALL, as in 100%, of the wealthiest 1%’s income (roughly $1.4 trillion), we could run these deficits for eight months before we’d have to move on and confiscate 100% of the next group of folks’ incomes.  And then the next, and then the next…

We’re broke and we’re gonna crash.  Don’t believe me?  Take it from this guy.

It’s mid-October, and Jeffrey Gundlach is giving a stump speech to a luncheon crowd of about 200 financial advisers and investors at Los Angeles’s City Club. The renowned money manager’s theme: the financial catastrophe on the horizon.

In the ominous third phase, he predicts another crisis: Deeply indebted countries and companies, which Gundlach doesn’t name, will default sometime after 2013. Central banks may forestall these defaults by pumping even more money into the economy — at the risk of higher inflation in coming years.

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  • mikemc1970

    Nonperishable food supply, precious metals, and ammunition are great investments strategies for the Obama economy. Get some, you’re gonna need them soon.

  • WOOF

    So things are looking up.
    “The central bank predicts the U.S. economy will grow 2.3% to 3%
    the unemployment rate will fall to between 7.4% and 7.7% by the end of next year”

    • HG

      Woof, even you should know that is a dismal projection. Especially since to reach 7.4 all we have to do is have another 1/2 million workers give up on finding a job. That’s how we got to 7.7.

      • WOOF

        GDP growth,”Truman (4.8 percent), Kennedy (5.2 percent) and Johnson (5.1 percent)—— Reagan, by contrast, averaged 3.5
        percent, Carter 3.3 percent, Nixon 3.1 percent, Bush I and Ford 2.2
        percent, and Bush II 1.65 percent.” 3% is going in the right direction.

        • Thresherman

          It is only a prediction, you glittering jewel of ignorance, not a fact. Let’s see if it comes true or if it is yet another in a long, long, long line of positive predictions that “unexpectedly” failed to occur.

        • HG

          That is the high end of the projection. We have yet to meet any of the projected numbers under Obama. Numbers that deficit forecasts have relied on.

    • $16179444
      • WOOF

        Employment is a political fiscal decision.

        • Thresherman

          Yeah, because when an employer considers hiring someone, one of his top considerations is the political ramifications of it.

          • WOOF

            Gov’t and the Feds job is tofill the land with work and money, that creates demand. Demand creates jobs and business.

          • mickey_moussaoui

            so why is odumbo failing so badly then?

  • sbark

    ………data indicate that 17,446,537 tax returns showed an income over $100,000. These returns represented a total income of $3.765 trillion.

    Estimated 2012 spending comes in at $3.796 trillion . This is still $30 billion more than a 100% confiscation of the annual income of all Americans that reported more than $100K of income for 2009.

    The bottom line is that we cannot fund our current levels of spending even if we make unrealistically charitable assumptions about taxpayer response to confiscatory tax rates and confiscate the entire annual income of every American who made more than $100K in 2009………data via Am Thinker

    …..so this present spat over 8 days of revenue via taxing the “rich” …..is really just an election ploy so the next GOP that runs on “cutting taxes” gets laughed out of the building.

  • mickey_moussaoui

    This was predicted 5 years ago if odumbo were elected

  • mickey_moussaoui

    bottom line: nothing obuma is doing or plans to do will make much of an improvement over the next 3 to 4 years. big shocker.
    This IS his economy. It was HIS economy four years ago and it is HIS economy NOW and it’s not working

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