So where do you think your governments going and what do you think they'll do next? If the Congress in the last 3 years of record tax revenues could do nothing to alleviate this recession, what do you think will happen this year when their tax collection will be cut by about 1/4-1/3. That is my estimate, and granted it is not very scientific.
The problem with government running your money is that they always know they can get more. The reason they do is because they usually can and not having had the sad experience of being cut off by the people, they are usually right. Frankly it would be better if they were.
Take for instance, California; by law they are supposed to set the year's budget by July 31st or be out of business.. shut down. Well of course, they are not.. but they should be for it means they are not doing their job. Imagine if you told your boss that you can't finish a project by deadline and what's more you'll still be working on it 8 months later, expecting full pay, of course. This government in California is doing just that and the people are taking it as if it was not their money being wasted. Now, the threat is that 21000 people will have to be laid off unless the budget is passed by tomorrow. My answer to that is .. good. In fact we should lay off a lot more, because less government, the less the government will cost and the faster we can get out of debt. Better yet, we should cut off all salaries of the legistlative body until the budget is passed, starting with the 1st day they are late.
OH NOOOOO you can't say that! How can I be so cruel as to ask that those workers lose their jobs. Well my dears, aren't there many other people in corporations losing their jobs? What did you say? Those "big bad" corporations squandered and wasted money and that's why their workers lost their jobs? So tell me where's the difference? Your government is doing the very same thing and worse, yet you want all those government jobs to be protected like some sacred cow with your hard earned money: YOUR TAXES!
Think about it. At least you have a choice whether you wish to invest in a corporation as opposed to being forced into investing in your government. So which is mismanaged the most: a corporation that has to show profits in order to get you to invest more money, or your government that knows it can get more from you or print more, no matter what and how they spend and manage. I am willing to bet that there are more wasteful, ineffective governments and government projects out there (with a lot more to come now) than there are wasteful, dishonest, ineffective companies (not being propped up by government). So guess which has more to hide. Follow the money! It's your debt they are creating and forcing on you to pay.
So which way do you think the markets will go?
