To paraphrase the US Constitution: “We hold these facts to be self evident; we’re in deep dodo!”
This is one of those “decide for yourself” blogs. These are the facts as I know them:
For the USA:
- A $16.3 trillion National Debt, on a GDP of $15.1 trillion (debt is nearly 110% of income)
- 47 million people on food stamps
- Over $222 trillion of unfunded Federal entitlement liabilities
- Over $5 trillion of unfunded State entitlement liabilities
- True unemployment above 20%.
- True inflation above 5%.
- A stock market at the same level as 1999, with a 10 year expected annual return of less than 4% – Stocks for the really, really long run. 10 year bond returns of 0% will be a miracle.
- A savings rate of 3.7% and with Bernanke’s ZIRP, no incentive to save. Real hourly earnings continue to fall.
For the UK:
- As of Q1 2012 the UK national debt amounted to £1,278.2 billion, or 86.8% of total GDP
- In 2012 the interest on the UK national debt will cost £44.8 billion a year. That’s more than is spent on the national defence
- The official unemployment rate is approx. 8% , but the unofficial rate rises to nearly 20% if one includes those looking for work (but not registered) and those in part-time work trying to find full-time employment.
- Economy growing at just under 1.0% per year
- The UK must borrow nearly £121 billion, or over £2 bn a week to meet its expenditures
- The UK funds the EU to the tune of £10.8B annually
It is what it is and there is no use looking backward as to who did what. It’s definitely time to move forward with real solutions, not more rhetoric or debate.
What’s the plan, Stan?
Mr. Fixit and millions of others living in the US and UK want to see real, courageous, fixit plans from our elected officials. Now!
John R Childress