Archive for September, 2011
A DOUBLE DOSE OF REALITY:
This is how the President and Congress (‘Belt Way Buddies’) manage our country’s annual budget:
| Annual Tax Revenue to the U.S. Government: | $2,170,000,000,000 |
| • 2011 Government spending: | $3,820,000,000,000 |
| • Government borrowing (additional debt) to cover spending shortfall: | $1,650,000,000,000 |
| • National debt (as of 8/29/11): | $14,271,000,000,000 |
| • Recent spending cutback (budget reduction): | $38,500,000,000 |
And here is fiscal reality for Main Street USA (‘taxpayers’). Remove 8 zeros and think of the Belt Way’s budget as if it were a taxpayer’s budget:
| Annual family income: | $21,700 |
| • Money the family spends in 2011: | $38,200 |
| • Additional family debt (goes on the credit card; home equity is used up): | $16,500 |
| • Outstanding balance on the credit card: | $142,710 |
| • Family spending cutback: | $385 |
And now we understand why the Belt Way Buddies do not see or feel the pain on Main Street.
Starting with the latter analogy, a template might be developed which provides an intellectual response to solving our nation’s spending and borrowing crisis.
Warren Buffet recently suggested an increased tax on the wealthiest Americans. It is interesting that despite polls suggesting most Americans support a tax increase, Congress refuses to pass a budget increasing taxes.
With politicians taking so many spending items “off the table”, it appears the table is set for the PIIGS (Portugal, Ireland, Italy, Greece and Spain are all countries facing the same spending and debt crisis which the U.S. is in the midst of).
George Vitta, President
Asset Strategies Portfolio Services, Inc. is an independent, fee-only, institutional, investment consultant located in Auburn Hills, Michigan.
For more information, please call 248-373-9900.
Asset Strategies’ Investment Consultants to attend MAPERS Conference
George Vitta and Katherine Ghannam will attend the MAPERS 2011 Fall Conference on Sunday, September 18 through Tuesday, September 20 at the Amway Grand Hotel in Grand Rapids, Michigan.
The three days of educational programming targeted to public retirement plan trustees includes new a ‘New Trustee Workshop’ geared toward first term fiduciaries, investment education sessions on managing risk while pursuing returns and investment strategies. Of great interest to many of our clients will be the review and discussion of the MAPERS membership survey conducted earlier this year.
The theme for the conferences’ social events is the ‘Awesome 80s’. While most of us recall the era of trend-setting fashion and the driving beat of the dance music, we may prefer to forget the 12 – 15% mortgage interest rates that prevailed through much of the decade.
Asset Strategies Portfolio Services, Inc. is an institutional, investment consultant located in Auburn Hills, Michigan. For more information, please call 248-373-9900.
August 2011: Capital Markets & U.S. Economic Update
August 2011: Capital Markets & U.S. Economic Update
Asset Strategies Portfolio Services, Inc. is an independent institutional investment consultant located in Auburn Hills, Michigan. For additional information please call (248) 373-9900.
