PeakTrader.com

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PeakTrader said...

The country should've gradually shifted into private retirement and health care accounts long ago, which would've earned higher returns and then could've been taxed to help the poor, instead of creating more welfare jobs to redistribute more welfare.

Interest on the national debt will soon exceed defense spending.

The solution by some people is cut defense spending

Another trend is the explosion of budget deficits before the 80 million Baby-Boomers begin to retire.

http://1.bp.blogspot.com/-1fhJmYj9j8c/TWCj2JIm6pI/AAAAAAAAO_g/9pEV7Sov7Cs/s1600/fedspending.jpg

http://www.aolnews.com/2011/02/19/opinion-what-does-government-do/

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The middle class and total taxes:

Main Street: Tax burden grows even heavier
Feb. 16, 2011

"The tax burden is not just heavy on the wealthiest Americans. The burden on the middle class and even lower-middle class is stunning when you start actually counting up everything. Taxes are often hidden. For example, one of us recently purchased a nice vehicle -- not a luxury vehicle at all, but a truck that we hope to keep for 10-12 years. The sales tax bill alone was over $2,400.

It very well could be that the state of Illinois made more money on that transaction than did either the dealer or General Motors.

What was it again the state of Illinois did to deserve a cool $2,400? And of course beyond that, there was more than $100 in licensing.

We Americans, after all, should be concerned about all forms of taxes: taxes on gasoline, property taxes, sales taxes, Medicare taxes, federal income taxes and now our new state income tax, up to 5 percent from 3 percent -- a 66 percent increase. We are getting hammered by taxes.

This year Tumblin will be tracking all of his taxes. Yep, every penny. When he goes through a toll booth, that's a $2 tax. He's keeping track. When he recently bought a notebook and supplies for school and was taxed $1.67, he's counting that tax. And on and on. We will report back the "good news" next January, but also give you some periodic updates.

We believe that a typical middle class family in Illinois that makes from $60,000 to $100,000 with two income earners is already paying nearly 30-40 percent of their annual income in taxes."

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PeakTrader said...

VangelV, the U.S. is not "paying to protect Germany, Japan, and Korea." Export-led economies pay the U.S. to protect them by selling their goods too cheaply to have the dollars to buy the commodities needed for production, which are eventually invested in U.S. Treasury bonds, at low rates, to finance the U.S. military.

VangelV: "Why the hell is the US spending more on defense than the rest of the world combined."

So, the U.S. can consume more than produce than what it spends on the military.

The World’s Reserve Currency
October 3, 2007

"A reserve currency is money that’s held by many countries as their foreign exchange reserves. It’s also the currency that’s typically used to price commodities, such as oil and gold, that are traded between countries.

A country whose currency is the predominant reserve currency benefits tremendously. In the case of the dollar, the U.S. benefits from the increased demand for the dollar that the reserve currency status creates. Other countries give the U.S. valuable goods in exchange for dollars issued by the Federal Reserve. They also lend the dollars they’ve accumulated back to the U.S. at low interest rates. Most significantly, the U.S. benefits from importing these goods and exporting its inflation to other countries in the form of depreciating dollars."

http://moneygirl.quickanddirtytips.com/money-currency.aspx