Economic Reality

Discussion in 'Economy' started by Bullypulpit, Aug 9, 2007.

  1. Bullypulpit
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    Bullypulpit Senior Member

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    <blockquote>Despite the Federal Reserve’s stay-the-course message yesterday, investors are betting on at least one interest-rate cut by January, intended to quell turmoil in the markets and to juice the slow economy. But with the dollar also weak — recently hitting its lowest point in 15 years against an index of other major currencies — the Fed may be reluctant to oblige.

    A declining dollar is a source of inflationary pressure because it can boost the cost of imports. So if the Fed tried to rev up the economy with a rate cut at the same time the dollar is falling, it could end up provoking even more inflation. That would be a drag on economic growth rather than a boost. In an extreme case, it could result in a toxic combination of weak growth and high prices that is a central banker’s nightmare.

    How did the Fed lose room to maneuver? The answer is rooted in the Bush administration’s misguided economic policies.

    Over the last several years, America’s imbalances in trade and other global transactions have worsened dramatically, requiring the United States to borrow billions of dollars a day from abroad just to balance its books. - <a href=http://www.nytimes.com/2007/08/08/opinion/08wed1.html?ei=5088&en=1044bec877b0e02b&ex=1344225600&partner=rssnyt&emc=rss&pagewanted=print>NYT</a></blockquote>

    What's needed to fix the problem? A dramatic reversal of the Bush administration's economic policies, starting with a roll-back of Bush's tax cuts. Tax policies need to be aimed at giving the average person incentives to save rather than expanding the already generous tax-shelters for America's wealthiest families. Also, the rapidly growing burden of health-care costs need to be addressed by the government in a responsible manner. Neither of which this administration is likely to do. More importantly, however, the government MUST be weened off of the sugar-teat of foreign borrowing. Rather than do the responsible thing and raise taxes to finance the disastrous war in Iraq, the Bush administration has borrowed money from abroad to pay for it, leaving this nation vulnerable to economic black-mail, such as <a href=http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml>China is now doing</a>.

    Strong leadership is required to guide this nation through the economic pit-falls it now faces, leadership the Bush administration has utterly failed to provide. They have abandoned their responsibilities in this arena as they have in so many others.
     
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  2. Toro
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    Toro Diamond Member

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    Rolling back the tax cuts right now wouldn't be a good idea. The economy is slowing and parts of the financial markets are in turmoil. Increasing taxes and/or cutting spending would exacerbate the problems.
     
  3. Truthmatters
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    Pretty much no matter what is done pains will be felt.

    That is the meaning of this post I think.

    We have been warning about this for years and got told we were just beating on Bush.

    The fact is the govs insistance on tax cuts and war along with its complete lack of oversight of industies like the banks to keep them from making the types of loans which were destined to failure is what has gotten us here.

    Rock meet hard place and thank the Republican party.
     
  4. Delbert
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    Delbert Rookie

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    Republicans are to blame.... yes this is true,...... but.....
    any of you who think the dems are any less responsible
    are just foolin yourselves. The truth of the matter is both
    political parties are equally to blame. If your trying to make
    yourself feel better about who you support, then so be it.
    I have seen the light, and Repubs=Dems. There is very
    little meaningful difference, especially fiscally. I will only
    support a candidate who has the best interest of the country
    at heart, sadly there are few to choose from.
     
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  5. JeffWartman
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    JeffWartman Senior Member

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    :clap2:
     
  6. mattskramer
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    mattskramer Senior Member

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    According to you, is everything negative the fault of the Bush administration? Did the mining incident happen because Bush is in office? I don’t hold current presidents exclusively accountable for the current economy. There are many factors that are practically out of the president’s total control. The purse strings are held by congress. There is residual from the past administration. There are global and international factors. There are the whims of the citizens. There are technological waves like the “dot com” booms and busts. There is the Federal Reserve chairman. There is just so much to consider.
     
  7. Vintij
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    Vintij Senior Member

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    Or we could just use the evidence of Bush's past projects and failures to predict his many failures in the highest project of the land, the presidency.

    He snorted coke
    Smoked Weed
    Is an Alcoholic
    Bankrupted his company and his friends company
    Dodged the draft
    Failed with the rangers
    Had a DUI at a "mature" age


    How much more failure do we need to start thinking that Bush IS capable of fucking up in a big way? Especially with something he does not know how to handle, fiscal budgets. You dont hand US economic Policy to someone who bankrupts companys. Its just something that should not happen but did, twice.
     
  8. mattskramer
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    mattskramer Senior Member

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    It looks like partisan hype. Okay. Perhaps Bush had a minor drug and business problem. I could come up with a list of Bill Clinton’s crimes or indiscretions. It still does not answer the question about whether or not – or to what degree – a current president has absolute control over the nation’s current economy.
     
  9. Vintij
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    Vintij Senior Member

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    Im not saying clinton was any better. The point of this particular post was to point out the enormous amount of influence the "blind votes" have on presidential elections which result in certain failed economic policy.

    What blind voters dont look at, is how much of a failure a president was in the past. Infact the only thing they look at really is, who the parents are.....what faith they are....and when they signed up for the service. Thats about it.

    If not for these blind voters, people would realize that Bush's foreign borrowing is the exact same tacitc he used to hide his debt and costly ambigous agenda's when he ran his own company.
     
  10. Truthmatters
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    Tax Cuts at the same time you are waging a war is utter stupidity.

    Not policing the sectors like the banks when they are putting our economy at risk (so the economy still "looks" good).

    destroying our military by straining to the breaking point.

    Ignoring disastors.


    Most of America now looks back at the Clinton years very fondly.

    You are fooling yourself if you think the Dem party is equally to blame here.

    Tell me how are you going to fix ANY of this with the major parties?
     

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