Sunday, October 21, 2012

Romney and Obama fail the Deficit Test

Neither the Romney, the Ryan, nor the Obama budget are more than fairy tales told to the public according to fact checking journalists.

Once any intelligent adult realizes this they are ahead of the game. Second, the Romney budget helps the upper middle class and rich and leaves the middle class and poor dying from lack of health care and lack of food and jobs.

Though the Obama budget is a fantasy too, the difference is that thousands more will live because they won't lose their health insurance, and also millions won't starve or turn to crime as their food stamps are suddenly cut off by Romney.

Besides, fact checkers all concede that it doesn't really matter economically for people who have savings etc. who actually gets elected. In the end both outcomes are financially about the same. The only real difference is the amount of people that will literally die without health insurance and the 50 million who likely will have to beg or turn to crime in order to survive Romney's potential Presidency.

The other problem is the actual deficit itself. The politics of this nation is based upon 4 year cycles at most. But, the deficit problem is one that has been growing since about 1980. Part of it's growth is that the Congress has slowly stolen all the Social Security Savings garnered since the 1930s, to the point where only the money coming in on a daily basis actually funds Social Security now. So, Congress spent, for example, all the money I ever put into Social Security from 1963 when I was 15 until now was spent by the Congress on many things that had nothing to do with Social Security. So, if you wonder where all that money went just ask every congress since 1963 when I was 15.

So, once you realize the deficit was created by Congress spending Social Security out of the savings, and military operations since the Viet Nam War, then you begin to realize exactly why the U.S. and NATO countries are basically bankrupt now. You don't see China spending all it's money in wars. They spend all their money (50,000 uprisings across China this year) in suppressing their own people's clamoring for rights. But, even this is incredibly less expensive than all the wars that the U.S. has gotten into since the Cuban Missile Crisis with Castro including the Cold war from about 1950 until about 1990. This was extremely expensive.

So, the deficit has been slowly growing since at the very least 1980 in the aftermath of the Viet Nam War. Thinking it is going to be paid down anytime soon is a fantasy by either party.

So, in the short run the most likely scenario is a lessening of our credit rating here in the U.S. because of a short term fix by either Obama or Romney. By the way it will be a do-nothing Congress for Romney too in case you were wondering even if he gets in.

The stock market has already factored in a 5% drop before or after the election and then the stock market rebounding to 1000 points above where it is now by December or January which it has done during every new presidency which is traditional election year thing.

I can't guarantee this happening but since it seems to always happen it is expected by those in the know. However remember, what is happening in world wide news could change this in an instant. So, be ready for the stock market to turn on a dime at any point.

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