New York Times: U.S. Racing Toward Debt ‘Shock’

Monday, November 23, 2009 1:51 PM

A page one, top-of-the-fold New York Times report Monday warns that U.S. debt is rising so fast that the federal government is careening toward a “payment shock” in the not-too-distant future.

The Times lead headline read: “Federal Government Faces Balloon in Debt Payments: At $700 Billion a Year, Cost Will Top Budgets for 2 Wars, Education, Energy.”

The Times headline appears eerie just as the Senate moves to push forward on a radical healthcare reform — with CBO estimates for a final bill costing nearly $1 trillion dollars over the next year.

The national debt now stands at over $12 trillion and the White House estimates that the cost of servicing the debt will rise to more than $700 billion a year in 2019, up from $202 billion this year. The Times suggests that $700 billion annual payment cost may be conservative.

The additional $500 billion a year in interest payments would surpass the combined budgets this year for education, energy, homeland security, plus the wars in Iraq and Afghanistan, the Times observes.

Treasury officials face not only huge new debts incurred in response to the economic meltdown but a balloon of short-term borrowings coming due in the months ahead, and interest rates that are certain to return to normal levels when the Federal Reserve concludes that the fiscal emergency has passed.

“Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages,” The Times reported on Monday.

Unbelievable Corruption – Government To Rebate $42,000 On $110,000 2 Seat Sports Car!

What former Politicians or current Political contributors are cleaning up on this scam?

How much of the “stimulus money” went to underwrite the budget in the State of Colorado and therefore indirectly underwrite this giveaway program?

We all know there is only so much money to go around – that is why the US Government is borrowing trillions of dollars from the Communist Chinese to pay our current bills. Trillions of dollars that the younger generations of Americans will be forced to repay.

And now we have this stupidy …….

The State of Colorado’s “income”, which it generates through taxes and fees and the transfer of funds from the US taxpayers who don’t live in Colorado, isn’t umlimited.

So why funnel $42,000 to inidivuals who buy a a Tesla. Tesla is a California based company, which is partially owned by Daimler AG (as of May 19, 2009). You remember, Damlier, Chryslers’ former owner?

Tesla has already received $500 Million from the US Department of Energy (March 2009) to “defer” the cost of developing these vehicles. $500 million from the Department of Energy, when the “owners” or “investors” in Tesla, have committed approximately $100 million of their personal wealth. In other words, 5 out of 6 dollars has been funded by American Taxpayers through the Department of Energy to start with. Now the Taxpayers will fund half the purchase price of the car for those who can plunk down $100,000 plus to start with.

You don’t need to sell Tesla’s to develop the technology – the technology is already in the car. If someone wants to use the “technology” they should pay a royalty to Tesla to use and adapt it. If the plan is to let Tesla “hoard” the technology, that is fine, but they can do that without further Government subsidy.  If Tesla can make autos that will sell on their own, let the private market place fund the venture, not the American taxpayer.   

At the present time Tesla employs something slightly more than 350 people. Tesla has 8 sales stores, 2 in California, 1 in Colorado, 1 in Illinois, 1 in Florida, 1 in Washington, DC, 1 in Toronto, Canada and 1 in Monaco.  At full production, Tesla manufacturers approximately 25 autos per week.

The Tesla vehicle in question carries a US Identification number, however, the chasis and most of the vehicles external parts are manufacturered outside of the US. The components are assembled and shipped to the US where the battery packs and power drive are installed.

It appears that the Tesla is a wonderful vehicle, but as a $100,000 plus 2 seater, it isn’t really a practical vehicle for a family of 4?

For every $42,000 that the Government “rebates” for the purchase of a Tesla, that is $42,000 that isn’t in the Government’s budget to pay for the operating expenses, expenses that lead to “budget deficits” and budget short falls. $42,000 that isn’t available for student loans, to pay teachers, fireman or police officers or to cover unemployment benefits for the 7.6 Million lost jobs in this Country.

$42,000 that must be replaced by taxing the average working stiff.  

Has the Country gone crazy or just the people we elect to govern it?

World’s Largest Cash-Back Rebate: $42K Off Tesla Roadster

provided by      

If you’re in the market for a new car and would like a little help with the purchase, there’s a nice $3,500 cash-back rebate this month on the Pontiac G8. There’s a similar $3,500 rebate on leftover 2009 Ford Mustangs. Or, for Colorado residents, there’s a $42,083 rebate on the all-electric Tesla Roadster.

Yeah, read it again. Didn’t change, did it?

Autoblog reports, “Colorado is offering a $42,083 rebate on the 2009 Tesla Roadster until December 31st…yep, that’s a 38-percent discount on what must be the most desirable electric car currently for sale in the United States.” 

For the uninitiated, the Tesla Roadster is a guilt-free supercar. A topless, wind-in-your-hair rocket that surges from a standstill to sixty miles per hour in less than four seconds, it’s fast enough to catch the gingerbread man. It corners faster than a caffeinated chipmunk running from a lawn mower and, oh yeah, it doesn’t use gas. When you get home (which shouldn’t take long), you just plug it back into the wall.  

The only problem with the Roadster is its buzz-killing six-figure sticker price. Except, apparently, for those who can see the Rockies from their driveway.  

Autoblog explains, “The incentive actually applies to a slew of qualifying hybrid and electric vehicles and will be paid in the form of an income tax credit that’s calculated by determining the difference in price of the alt-fuel car or truck as compared to a competitive gas-powered model. In the case of the Tesla Roadster, Colorado figures the EV costs a whopping $50K more than its competitive set.”  

We have no idea what possessed them to think the Tesla had competitors. There’s just nothing else like it. They may have compared it to the Lotus Elise, a similarly-sized, lightweight track racer that does cost about $50K less.  

(McAuleys World: So the Government thinks they should help you buy a Tesla, provided you live in Colorado, and to make sure you don’t have to pay more than you would spend on a Lotus – and just how many of us drive a Lotus sports car?)

Whatever they were comparing it to, they took a massive chunk out of the price. Jalopnik notes, “The final price, after the tax credit, is a relatively low $67,800 (relative to the 110K starting price).”  

Tesla dealers are rare, but Colorado shoppers are in luck. Fox News reports, “Tesla will open a new store in Boulder, Colorado, this Friday.”  

If you need more than two seats, or trunk space for something larger than a pen, the Tesla won’t meet your needs. But we found jaw-dropping rebates on some cars that might. A fact sheet put of by the Taxpayer Service Division of the Colorado Department of Revenue lists the lot of them, ranging from $3,906 off a Ford Escape Hybrid to $20,392 off a Lexus LS 600 hybrid

Hmmmm …. $20,000 plus off a Lexus LS 600 Hybrid.

Somebody pays for the $20,000 discount on the Lexus, just like somebody pays for the $42,000 on the Tesla. Wanna guess who?

Wanna guess whose tax money was sent to Colorado to subsidize their State Budget and indirectly subsidize this giveaway program? 

It is absolute insanity!

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