This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

We Are All Greeks

NEW YORK ( TheStreet) -- When I see the protesters rioting in the streets of Athens in response to austerity measures, it always makes me scratch my head and wonder. I think, "What are you protesting about? You're broke."

At the same time, I'm equally perplexed by the lack of protesting here in the U.S. After all, we still have a chance to do something about the curious way in which we manage our finances, and the outcome this management delivers.

As a first step, I highly recommend all voters (and, sadly, all future voters) check out the "budget" at www.whitehouse.gov/omb/budget. I put it in quotes like that owing to my background, where the word budget, when uttered by my father, was usually used in connection with some familial sacrifice, which I don't see much in evidence in this budget. Here's a few pearls I pulled from it.

Our taxes will increase $1.9 trillion over 10 years.

The budget gives us four straight years of trillion-dollar deficits. As my father would say, "You call that a budget?"

Our interest payments will reach $1 trillion a year by 2022. With the Chinese such large holders of our debt, we can finance their entire military budget with our interest payments alone.

The budget spends $47 trillion over 10 years and assumes receipts of $40.2 trillion, for a net contribution to the deficit of almost $7 trillion, an amount, by the way, that is larger than the economies Italy, France and the U.K. combined.

The budget assumes compound annual growth in the U.S. economy of 5%, a rate that has not been achieved over the past 10 years. Using the historical rate of 3.96% that was achieved over the past 10 years for the next 10 years would mean our debt would likely exceed 85% of GDP, not the 76% the budget purports.

Whatever the talk was a few months back about deficit reduction, I'm afraid I just don't see it in this budget. While the numbers may lie along the way, they don't lie in the final analysis. With GDP projections calculated at more modest historical rates, another hard truth emerges: We're heading toward debt levels that are more than 85% of GDP. We are becoming a European nation.



I can't prove this scientifically, but my theory is that the rise in spending and deficits is directly correlated with the complexity of new laws and regulations. Before you take in the substance of the graphs below, keep in mind the word count of the U.S. Constitution is just 4,543 words, the length of a long-ish college essay.

Chris Markowski is a radio show host and founder of the financial-planning firm Markowski Investments. A former sales professional in the brokerage industry, Markowski has dedicated himself to exposing the corruption he saw there. His radio show, "Watchdog on Wall Street," is now in its 10th year of syndication.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.03 1.90%
FB $80.55 1.50%
GOOG $539.80 1.40%
TSLA $247.43 -0.01%
YHOO $43.39 1.30%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs