Health, Myths, Fraud and the Crisis

Posts tagged ‘Banana Republic’

U.S. is 244 years old and over one-third of the national debt has been created in just the past three years

said David Rosenberg in one of his Breakfast with Dave musings: “The Fed has allowed its balance sheet to explode even further to obscene levels of $2.43 trillion or triple what it was before the financial crisis took hold. In the past three years, the Fed’s balance sheet has expanded by $1.5 trillion and nominal GDP has only managed to rise over $500 billion. Fascinating. And we had the U.S. public debt explode by $5 trillion over that same time frame — the country is 244 years old and over one-third of the national debt has been created in just the past three years. Incredible. The U.S. government now spends $1.60 in goods and services for every dollar it is taking in with respect to revenues which is unheard of — this ratio never got much above $1.20, not even during the previous severe economic setbacks in the early 1980s and early 1990s.”

This is one of those record numbers that probably wont make it to the Guinness Book, but certainly worth posting.

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Banana Republic …

A  NYT article runs this headline today referring to the income inequalities in the US. What the author forgot to mention is that 42 million Americans were on food stamps during the month of August. The circumstances of Mr. Change’s visit to India  – 600 security guards, 9 escorting air planes, 3 booked hotels, a tunnel to the Taj Mahal and removal of all coconuts hanging over Obamas footpath – support imo also his view :

The richest 1 percent of Americans now take home almost 24 percent of income, up from almost 9 percent in 1976. As Timothy Noah of Slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela and Guyana.

C.E.O.’s of the largest American companies earned an average of 42 times as much as the average worker in 1980, but 531 times as much in 2001. Perhaps the most astounding statistic is this: From 1980 to 2005, more than four-fifths of the total increase in American incomes went to the richest 1 percent. (more…)

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