US Economy...

I wouldn't normally post on politics since that is not my cup-o-tea. However, I came across an article today that caught my eye. We receive a two weekly newspapers and for the most part, they don't tell too much. I glance through them quickly for information on swim lesson registration, to see what is on sale at Adonis, community happenings. But today when I was reading The West Island Suburban, there was a small article entitled Rein it in a bit Washington. The title caught my eye since most of the time I feel so far removed from US politics and news stories...and in some respects I am OK with that. I don't miss all the stories in the war in Afghanistan, shootings, crime stories, and political wrangling. I perk up when I see a Canadian take on what is going on back "home" and since this once makes sense, I decided to share it with you. Let me know what you think about what David Lisbona, B.C.L., LL.B, MBA, FMA, who is an investment advisor at RBC Dominion Securities, says.

"Like most pre-teen boys living in Montreal in the late '70s and early '80s, a transistor radio resided permanently under my pillow so that I could get my nightly fix of Sports Rap with Ted Tevan. I was saddened to hear of his passing last Friday, as this is yet another chapter closing in Montreal I remember from my youth.

Ted, while being the consummate entertainer, was always the man in control, if he didn't like what a caller had to say, the machine guns were unleashed and the caller was unceremoniously dismissed. There was little room for dissent in Ted's world, it was his way or no way. You always knew who was the boss.

By contrast, the lack of leadership in the U.S. is troubling to say the least. It is a rudderless ship with everyone, yet no one at the helm. The United States is in a heap of economic trouble, I don't believe you need a degree in economics or finance to come to that conclusion. One of the reasons for their dysfunction is their political system. While some may be praising the effects of democracy for the recent debate over the debt ceiling, the incessant threats and grandstanding from their political actors simply made an anxious world even more so; to put it mildly, it was not one of America's finer moments. Regrettably, our neighbors to the south have even less faith in their politicians than at the time this whole mess began. Even more regrettably, those same politicians did very little to restore faith in the system and worse still, their inaction on cutting the massive debt may have been a contributing factor to the market correction we have been forced to endure over these past two weeks or so. The Democrats and Republicans weren't rearranging the deck chairs on a rudderless hip. They have been taking pick-axes to the hull and facilitating the ship's demise.

Say what you want about Warren Buffet, but earlier this week, he made it clear that the politicians are acting solely in the best interest of a select few wealthy Americans and that it is time for the "super-rich", as he calls them, to pay their way as part of the "shared sacrifice" in bringing the U.S. debt under control. Unfortunately, Congress continues to protect the wealthy minority in the U.S. which will continue to impede true debt reduction and ultimately serve in postponing the tackling of their fiscal problems. President Barak Obama has even agreed with Buffet's tax proposal, however, he is powerless to implement any measures that are required.

The oft-cited refrain has been that we are simply taxed too highly in Canada, perhaps that is true, but could it be possible that Americans are not taxed enough, to the point where they are unable to sustain all of their entitlement programs without something giving way, and soon?

I'm not that discouraged, notwithstanding the clear inability to reach consensus in Washington up to now, I have no doubt that they will come to their senses one day and address the debt crisis with the fervor and diligence it requires. Otherwise, it may be time for American electors to "790" their politicians, just like Ted would do."

Article taken from the Business section of the West Island Suburban, Wednesday, August 17, 2011, Page 15.