Hey, Did Warren Buffet Just Agree With Me?

By Bill Glynn

I’m in Good Company Finally on Debt and Deficit

Okay, I am not a national economic brand like Warren Buffet, but very proud to be “On the Money.” With that, I must say I do have a pretty large voice across the country and I have been ranting about the deficit and debt for two years. Finally, the big boys are going public with their vision of a catastrophe just waiting to happen to the entire U.S. economy that will be much worse than the financial crisis. Yes, I am frustrated and a bit red-in-the-face that I don’t have an Op Ed in the NY Times. But my book IOUSA NOT is coming out in the next few months. I do feel a great deal of pride in the “On the Money” track record I have built. The debt and deficit as I have been shouting about at the top of my lungs are cancer, brain trauma, suicide... It is simply not sustainable and with everything done over the past two years and foreseeable future, we are sunk. During the time of World War II, the nation had a deficit of 4% of GDP. We have triple that this year - 13% or $1.8 trillion. Here is the catch - what do you think the GDP back then was compared to today? These comparison figures are apples and oranges and astronomically different. This will come home to roost and be devastating - MARK MY WORDS! Dare I say again. [more...]

Federal Deficit Numbers are WRONG

By Bill Glynn

$1.8 Trillion in 2009 - $1.3 Trillion 2010

We can add! $11.7 trillion debt + projected $3.1 trillion (2 yr deficit) + a trillion of newly printed currency. Taxes projected to be down another $500 billion this year. Whoops! I forgot the other $1 trillion (sure to be much higher) for healthcare. The fact is this is too rosy a picture. As bad and fiscally irresponsible as this is, I am calling the shot now that this will be much worse. Let’s not forget the interest on the debt. We are fast approaching $750 billion in interest annually alone. This will be at $1 trillion in just a few years. Projecting a 2-year $3.1 trillion deficit, far beyond anything ever seen, won’t be the number. I expect we will be closer to $4 trillion than $3 trillion. Why? Well we all know numbers from our government are always much lower than they tell us, for one. Second, recovery will be slow and painful, so tax revenue will be less and less. And does someone think taxing the $250K+ earners will make up for it? Not in a million years! It will make matters worse. [more...]

Churches & Non-Profits Get Hammered

By Bill Glynn

Christians Are Not Exempt From Financial Woes

Churches and all non-profits are severely wounded by the financial crisis that has really hit home. Dependant on donations, both are struggling to keep the lights on in some cases and significantly reducing programs for those that need it most especially now. This is a time in history where more and more people are looking for help and turning to the church for guidance while the coffers are running dry. Non-profits across the nation are also being tapped out so people can’t turn there either. Add to this the Administration’s proposal to pay for healthcare reform by eliminating the Non-Profit tax exemption for people who earn over $250K. Who the heck do you think gives the money to non-profits? Yes, financial discrimination again; but this is the bread and butter that keeps these institutions alive. People that tithe at churches definitely write off their donations. Those who can afford to tithe are mostly higher income families. So inflow of money is down severely and now you want to eliminate the deduction too? [more...]

An Economic Playbook 2009

By Bill Glynn

Economy May be Bottoming but Main Street will Remain Under Water

Economists are being conservative in a quarter-by-quarter analysis of how and when the U.S. economy and housing market will recover. Based on manufacturing output, exports, and a host of variables, everyone is eyeing GDP growth - especially when compared to last year. I am of the opinion that a lemonade stand would look positive against the last year. Expect that U.S. "big business" will take some time to begin to revive itself - not the expected big bounce, but a slow, painful and gradual increase. The key will be you and me getting back to buying products, goods and services. It has always been the key. Without consumption, no economy can survive. Credit-addicted consumers will remain in rehab and locked out of the spending game for quite a while. The unemployed and under employed will be a huge factor in recovery given that they are hobbled and scared. Those consumers are likely to have curbed their spending or stopped all non-essential purchases already. These consumers will most likely be withdrawn from spending and focus on rebuilding their lives - that is if they can ever get a job or something comparable. Expect this to further impact domestic growth. The credit-addicted can't get more credit and the creditworthy aren't going to spend enough to make up for all that. It is the credit spending that artificially boosted the economy for so long. [more...]