1987 style 20% crash coming, page-19

Chart 4 says it all , people are getting comfortable with these stock rises and the VIX is back to 2007 levels. I know what the brokers like GS are doing , spruiking all is well with good ol USA and S&P to rise while they short it to death. Just because a few companies are doing well with low interest rates what happens when they raise and the Government has to increase taxes just to pay for expenses. The USA is borrowing roughly a trillion a year to fund expenditure. I know if jobs are created then more taxes will be raised. How many lowly paid jobs do you need to cover a 1T shortfall in expenditure that doesnt even cover the $400B interest payments on the other 17T outstanding.


"In fiscal year 2012, the federal government spent $3.5 trillion, amounting to 23 percent of the nation’s Gross Domestic Product (GDP). Of that $3.5 trillion, nearly $2.5 trillion was financed by federal revenues. The remaining amount (about $1.1 trillion) was financed by borrowing; this deficit will ultimately be paid for by future taxpayers"

http://www.cbpp.org/cms/?fa=view&id=1258

Debt clock

http://www.nationaldebtclocks.org/debtclock/unitedstates