So were in Recovery mode eh?

[jschurchin]

Then how come tax receipt's are down 7.7% yoy in December?

http://market-ticker.denninger.net/

Remember folks, our nations GDP is driven by US, the consumers. And how do we calculate how much we are spending? Tax receipts. December 2008 was SHIT, Retail sales down better then 2.5%. Remember? And now tax receipts for December 2009 are down 7.7%.
I don't know about you, but every time our government economists open their mouths anymore, I call bullshit. Because the data isn't jiving with their scenarios.

Oh well. It's January in Pittsburgh and I have to tend to my Rose Garden. You do believe me, Right?

[dmallind]

1. How much did online shopping go up? Rarely collect sales tax there. NT

[jschurchin]

3. I agree.

However, here's what bothers me, and it has bothered me for a number of years. How long can we spend more then we take in? Last year on the federal level, we spent 4.5 trillion dollars and we took in 3 trillion. Now the states are finding themselves in a similar prediciment.

How long could any of us spend 30% more then we make, without having to pay the piper? 1 year, 5 years, 10 years. How long?

I have lived 47 years in, for the most part, prosperity. I don't know how the next 30 will play out, but from everything I can see, it won't be pretty. Our national debt is 12 Trillion dollars. There are 300 million of us. As it stands, right now, we each OWE $40,000. Do you have 40k laying around? I don't.

[Vinnie From Indy]

2. Don't worry - Gallup manufactured a poll a few days ago indicating everything is hunky dory

I know in my little piece of the world in Indiana things are not looking so hot.

[FBaggins]

4. Tax receipts are a poor proxy for GDP

IOW... your premise is incorrect.

[sendero]

5. Only if..

... GDP is a poor proxy for economic activity, which it is.