In the news this morning: President Obama delivers his 2012 proposed budget to Congress, unrest in the Middle East spreads, rising gold demand, and more…
Proposed 2012 U.S. Budget: $3,730,000,000,000... Today, President Obama delivered his proposed 2012 budget to Congress... Total: $3.73 trillion in Federal spending for fiscal year 2012... Includes spending cuts and tax increases... Lots of hand-wringing over the "difficult" cuts that had to be made... Is this comedy? How do painful cuts equal $3.73 trillion in spending? If this is considered "painful" then real cuts appear impossible. Projected "savings" making headlines today: $1.1 trillion over the next decade... Not nearly enough...
Budget fight to begin this week in Congress... All for show... Pandering to the Tea Party and whoever else is still listening... Neither party dares to touch the most expensive drivers of the deficit... Social Security, Medicare, or Medicaid... These alone -- not counting interest on the debt -- will consume 60% of total Federal spending in 2012.
Problem: Politicians have no incentive to cut spending...
Solution: Term-limits for all elected officials, including Congressmen. If the job can no longer be a career, re-election will not be the only incentive, as it is currently...
Bonus Solution: An opt-out option from Social Security for younger workers... Unlikely as ponzi schemes stop working without fresh blood...
2011 Deficit Sets New Record... And it now appears that Washington will spend at least $1.65 trillion more than they take in FY2011... Highest dollar amount on record... Represents 10.9% of the U.S. GDP... Out-of-control...
Egypt Under Martial Law... After last Friday's historic ouster of Egypt's long-time leader, Hosni Mubarak, the nation is now officially being led by Egypt's military, the Supreme Council of the Armed Forces. Things appear to be normalizing in the country. On Sunday, traffic flowed freely around Tahrir Square and most of the shops around the square were open. Over the weekend, the military announced it had dissolved the country's Parliament, suspended its constitution, and was promising fresh elections. Martial law now in effect... "Democratic" elections appear at least six months away...
And, protesters have once again taken to the streets in Egypt... But this time, its to clean up the streets left in disarray after the widespread protests...
Mideast Unrest Spreads... Demands for political reform are sweeping the Arab world...
Libya's leader, Muammar Gaddafi, is calling on Palestinian refugees to rise in protest against Israel...
Meanwhile, the people of Libya are planning protests against their dictator...
The Palestinian cabinet resigned today to signify attempts at reform...
Anti-government protests planned in Iran today...
Fresh violent protests rock Yemen...
Should Russia and China be worried?
"Day of Rage" in Bahrain...
And in Algeria...
Shockwaves...
Rising China vs. Shrinking Japan... 2010 GDP numbers show Japan's economy was valued at $5.47 trillion dollars while China was at $5.88 trillion... Japan's economy shrunk less than expected, yet China has still surpassed it... Officially the #2 economy in the world... Expected to surpass the U.S. within 20 years...
France Calls for New Global Financial System... As the current head of the G-20, France will push for a new global monetary system that is less dependent upon the U.S. Dollar, and instead based upon several international currencies...
Gold Demand Up... Hedge funds are piling back into the yellow metal... and into silver... Three reasons why gold will go higher in 2011... Interview with veteran precious metals advisor, Tom Cloud...
Also in the news...
1) With cotton at new all-time highs, the era of falling clothing prices is ending...
2) The cost of servicing the interest on the national debt is set to triple with higher rates...
3) Why higher oil prices are good for silver...
4) Ziebach County, SD: A look inside America's poorest county...
5) The worst cases of hyperinflation...
Finally... Here's a list of 100 ways to say "I Love You" to that special someone on Valentine's Day...
Why So Serious?... It's time to laugh a little.
Recently seen on a bumper sticker... "Palin 2012: Prove the Mayans Right"
"The NFL and the players’ union have canceled their contract negotiations, which could mean no NFL football for next season. Both sides agreed this is the only way to prevent another Black Eyed Peas halftime show." -Conan O'Brien
Until tomorrow,
Jerry Robinson - FTMDaily.com
