We are living in a time of financial chaos. Currently the Government has accumulated debts (loans) of over $14 trillion. This amount is almost 100 percent of our nation's GDP; and does not include its off balance sheet obligations. This also doesn't include the States' debt obligations of around $3 trillion; or their various off balance sheet obligations.
The Government is going to collect around $2.5 trillion in taxes this year. However, it will spend about $3.9 trillion. This will add another $1.4 trillion to our Federal deficit. Are we becoming more like Japan like some people fear?
Japan has around 900 trillion Yen in debt obligations; which is almost 200 percent of its GDP. Japan brings in around 40 trillion Yen in tax revenues each year and spends about 55 percent of this amount on social security and debt servicing.
Based on our numbers, I expect the market to retest its lows sometime during the next five years. However, I would expect Japan to face a new crisis first if our deficits are to have this type of impact on our economy.
The Government is going to collect around $2.5 trillion in taxes this year. However, it will spend about $3.9 trillion. This will add another $1.4 trillion to our Federal deficit. Are we becoming more like Japan like some people fear?
Japan has around 900 trillion Yen in debt obligations; which is almost 200 percent of its GDP. Japan brings in around 40 trillion Yen in tax revenues each year and spends about 55 percent of this amount on social security and debt servicing.
Based on our numbers, I expect the market to retest its lows sometime during the next five years. However, I would expect Japan to face a new crisis first if our deficits are to have this type of impact on our economy.
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