Since the deal cut by Congress to do nothing on the deficit foranother two years, you hear nothing at all about it leading up tothe November election. However, it is not that the deficit isshrinking. It is just racing upward less fast. This will acceleratewhen the recent budget deal expires, and the rise of the deficitagain moves up at a rate that is crippling. Right now, the Fed isessentially carrying the US government by keeping rateshistorically low. If the ten year were once again around a morenormal 5%, the interest burden would quite simply consume thebudget and make it impossible to provide many of the servicespeople have come to demand.

Instead of dealing with reality, all we hear is incomeinequality, women are grossly underpaid, we need to raise taxes,etc. So here is some of the reality. Only 58.9% of the populationworks and earns money. Only about Only 86 million people, 27% ofthe population, pays taxes. 49.2% get some money from somegovernment entity. 70 million people are on Medicaid with another16 million projected to join them due to Obamacare. That will meanthere will be as many people on Medicaid as pay taxes. Add onanother 50 million receiving Medicare going to 73 million. 47million receive food stamps and the administration runs programs tosign 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 earnmore than men. The average family earns less today in adjusteddollars than they did decades ago. The Fed drove asset pricesintentionally so it is true that rich guys with a lot of excesscash to invest in the stock market and distressed real estate madea lot of money over the past 5 years. They did this by just beinginvestors of excess capital-what capitalism is all about. Theadministration forgets all these guys lost trillions in 2008-9. Allthey did for many was get even, but to hear the income inequalitytirades you would think we all stole the money. If you were likeme, I simply invested and thanks to the Fed, I made a lot of moneydoing that. I took advantage on no one and I could have losta fortune if things had not been supported by the Fed. For this Iget vilified and they now take some of that profit through highertaxes to pass along to all those who do not earn a living, do notpay taxes, It really filled my heart with good will when I recentlystood on line in my local supermarket in Manhattan behind a fairlynicely dressed woman who had a lovely manicure and a new I Phone asshe handed over her food stamps to the cashier. It was gratifyingto see my hard earned money going to a really needy person.