Chart 1 should be disturbing because:
1) The deficit was nine times greater in 2009 than it was in 2007;
2) Governments operating cost was ~eight times greater in 2009 than it was in 2007;
3) The 2009 budget deficit (white column) was greater than the net operating cost (red column) for the first time in the period covered by the charts.
The bright side is that in spite of spending 8 times as much money as they did 2 years ago, government is no more efficient; their damage to the economy has reached a sort of equilibrium where more money does not translate into more damage.
Chart 2: Monthly Indeividual and Corporate Tax Witholdings, Net of Refunds
Tax withholdings is one of the best indicators as to how the economy is doing. It is highly seasonal. So it would have been nice to compare monthly receipt to the previous year's monthly receipt. All of the months are there, so that can be done. Each and every month is down compared to the previous year's equivalent month.
Chart 3 OASDI / 100 worers
OK, two many entitlees and not enough workers.
and the outlook for workers working is not good.
Chart 9 Future Interest Costs Would Soar Without Futur Policy Changes
The author agrees with this projection and I don't.
1) The chart is 'interest costs' as a percentage of GDP. They are dividing the interest cost by the GDP. In a highly leveraged modern economy, like ours, a small change in interest rates upwards will close highly leveraged businesses. A small increase in interest rates will collapse GDP. It is a very risky & unstable environment. There won't be any smooth increase over the next seventy years. Most likely, one fine day, there will not be any credit available to Uncle Sam at any price. There will be a cliff in interest rates and commerce will cease.
