-- Posted Friday, 27 February 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Friday, February 27, 2009
“Phenomenally accurate forecasts”
Here’s Mike Huckabee, former governor of Arkansas, cutting to the quick yesterday on Fox: “You can’t spend your way to prosperity,” said Huckabee, “with money you don’t have.” Hard to argue with that statement. And if Americans understand this, as they very likely do, we should expect to see Fox’s ratings climb in the weeks and months ahead. Fox has been nearly alone in applying common sense to its analysis of the Democrats’ various stimulus packages, and, more recently, to the prospect of big new taxes that the Obama administration is considering.
Mr. Obama is predictably eager to take the scalps of some allegedly fat cats. In his view, apparently, fat cats are those with incomes exceeding $207,000. Under his soak-the-rich proposal, it is at that threshold that the value of deductions for charitable gifts and mortgage interest would start to decline sharply. The genesis of this plan should leave no doubt that the President has stepped onto the slippery slope of the politics of envy, given that he campaigned on a promise not to raise taxes on anyone earning less than $250,000.
$207,000 Buys Bupkus
So what’s the big deal about sliding the benchmark for fat cats down to $207,000? Well, for many two-income households, $207,000 before taxes is barely making ends meet. In high-tax states like California and New Jersey, that equates to about $100k of disposable income. Subtract $35k for your kid’s college expenses, $30k for mortgage payments, and another $20k for a family health plan, and that leaves a whopping $15k for things like food, clothing and utility bills. If anything remains for that well-earned vacation, you’ll be lucky if it buys three days at a Holiday Inn in Phoenix.
Even Americans who are hopeful that Mr. Obama’s fiscal effusions will somehow “work,” implicitly understand that no stimulus can possibly recoup what has already been lost. Our “golden years,” for instance. We were supposed to be able to retire at 65, but it is probably not exaggerating to say that most Americans 55 years or older have seen their retirement dreams vanish in the last year. Far from retiring to a life of golf and vacation cruises, we now wonder whether we will be able to meet our most basic needs. Will Medicare and Social Security be able to cut it when The Government has put trillions of dollars worth of obligations before them in order to bail out “the system”?
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Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers' initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 27 February 2009 | Digg This Article | Source: GoldSeek.com
