Since the deal cut by Congress to do nothing on the deficit for another two years, you hear nothing at all about it leading up to the November election. However, it is not that the deficit is shrinking. It is just racing upward less fast. This will accelerate when the recent budget deal expires, and the rise of the deficit again moves up at a rate that is crippling. Right now, the Fed is essentially carrying the US government by keeping rates historically low. If the ten year were once again around a more normal 5%, the interest burden would quite simply consume the budget and make it impossible to provide many of the services people have come to demand.

Instead of dealing with reality, all we hear is income inequality, women are grossly underpaid, we need to raise taxes, etc. So here is some of the reality. Only 58.9% of the population works and earns money. Only about Only 86 million people, 27% of the population, pays taxes. 49.2% get some money from some government entity. 70 million people are on Medicaid with another 16 million projected to join them due to Obamacare. That will mean there will be as many people on Medicaid as pay taxes. Add on another 50 million receiving Medicare going to 73 million. 47 million receive food stamps and the administration runs programs to sign up more people.

All of the objective studies show women overall earn about 96% as much as men and in some fields where women predominate they earn more than men. The average family earns less today in adjusted dollars than they did decades ago. The Fed drove asset prices intentionally so it is true that rich guys with a lot of excess cash to invest in the stock market and distressed real estate made a lot of money over the past 5 years. They did this by just being investors of excess capital-what capitalism is all about. The administration forgets all these guys lost trillions in 2008-9. All they did for many was get even, but to hear the income inequality tirades you would think we all stole the money. If you were like me, I simply invested and thanks to the Fed, I made a lot of money doing that. I took advantage on no one and I could have lost a fortune if things had not been supported by the Fed. For this I get vilified and they now take some of that profit through higher taxes to pass along to all those who do not earn a living, do not pay taxes, It really filled my heart with good will when I recently stood on line in my local supermarket in Manhattan behind a fairly nicely dressed woman who had a lovely manicure and a new I Phone as she handed over her food stamps to the cashier. It was gratifying to see my hard earned money going to a really needy person.