Rusted Sky

Unless you're the US government. First, a quick explanation.

Hemorrhaging - Especially Uncle Sam « Maenianum Secundum

The Biblical-proportion deficit predictions we’ve been hearing about are based on spending targets, but more importantly, on receipt targets. If spending is more than budgeted, the deficits will be larger, but only if receipts come in as expected. If receipts are greater than expected, then the deficits will be smaller than predicted (that was the Reagan-era phenomenon). If receipts are lower than expected, then the deficit will be larger. If both are off, such as spending being more than budgeted, and receipts are less than predicted, the deficit death spiral will be enormous.

And that is exactly what is happening, at such an accelerated rate that the economy is contracting… for the first time in decades and decades.

But that's okay - because it's the mean, evil corporations that've caused this problem in the first place, right? And Obama knows just how to solve it, by making those evil rich folk pay their fair share.

In September 2008, many people saw the writing on the wall, and began preparing for a Democratic-controlled Congress and a Democrat in the Oval Office. Unlike the Carter dormancy period (the months leading up to his win and the months before he took the Oath of Office), business had no experience with which to forecast how a Democratic Congress and President would behave. This time, we knew.

In those months before Carter took office, it was as if no one could see that the train wreck was about to happen, but this time, especially since Obama's Chicago-style ideology was clear to anyone who'd read more than one book in their lives, businesses (and individuals) had a warning of the future train wreck.

Business began shedding workers immediately, and moving their investments/cash in preparation. The only thing that has been surprising is how quickly the train wreck occurred, and how large the death toll.

This was a much bigger train, and the conductor wasn't simply asleep at the wheel, he was purposely running the engine at full throttle.

It's really rather surprising to see just how 'determined' Obama is on fomenting class warfare. If the UK Ttelegraph is noticing, you've got to believe the folks that Obama's depending on to pay the billis notice.

But just how bad is it?

There's graphs at the link - they're pretty bad.

Apparently April 2009 receipts are down almost 40% from last year.

Not four percent - forty.

From BizzyBlog.Com

And the press doesn't seem to have caught on yet that something's been chopping on the money tree. You'd think that tax receipts being down that much would have been noticed, right?

I guess not - in Obama's fantasy-land where corporations and the rich can be tapped for everything they've got and then some. But in reality? It doesn't work that way. A business has to have a fair expectation of being able to STAY in business, and they've got to make a PROFIT to do so. Making it harder for businesses to stay in business, making it 'evil' to make a profit - well, they ain't in business because they couldn't make it on the government dole.

There are a thousand reasons why Federal receipts are down, but the one that is most interesting is the attitude towards government effect. Our attitude about how our government is doing can be good or bad, depending on how we side on the issues. If we feel that government is doing a good job, we’re more likely to prepare our tax returns and calculate our withholding based on an optimistic outcome (taking fewer risks). The reverse is also true: when we believe that the government is doing a bad job or mishandling our tax dollars, we will take riskier deductions on our tax return, as well as calculate our withholding in such a way as to prepare for a bad financial year (to hold back as much cash as possible), or with the intent to starve/punish the beast.

Whether intentional or not, the beast is being starved. If the Federal receipts continue to hemorrhage, the deficit predictions will be wildly understated. Unlike you and me, where we would reduce our spending in the face of lower receipts, the government, especially this government, will do no such thing.

No, i'm afraid they won't. Instead - they'll blame business, they'll blame the rich, they'll say the 'fair share' isn't being paid - and they'll want more and more to pay for all the nice things Obama's promised.

Well - folks wanted 'change'. With luck, they'll have some left by the time Obama gets done.

J.