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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Monday, March 23, 2009

Chart of the day....

So look a the chart below that compares savings, interest rates and home ownership rates....



Savings have already increased to 5% and it on its way to 10% in my opinion. Additionally, home ownership rates will fall, probably to the mid-60's range. The implication is that as savings rates rise, household consumption will fall to a more sustainable level.

However, interest rates will eventually rise and coupled with the gigantic increases in the PUBLIC debt, that is debt issued on the market and owned by others, will definitively create interest payments that will bust the American Government's budget and cause it to default on its obligations. Probably the first obligation that it will default on is Social Security and/or Medicare.

1 Comments:

At 6:44 PM, Anonymous Anonymous said...

"Probably the first obligation that it will default on is Social Security and/or Medicare."

Good! The second criminal act FDR committed was the SS. I will never get anything from it, yet I will pay for it my whole life.

The first criminal act of FDR was the Gun Control Act of 1934. Liberals hate freedom, the individual, and getting caught.

 

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