If you think the debt crisis is bad now ...

Discussion in 'Economy' started by The_GiantNoodle, Jul 30, 2011.

  1. The_GiantNoodle
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    The_GiantNoodle Member

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    Excellent article!



    CONTINUED: If you think the debt crisis is bad now ... - Business - Stocks & economy - msnbc.com
     
  2. expat_panama
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    expat_panama Silver Member

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    It's an excellent choice for spurring discussion. The article crudely distorts economic realities, because it boils down to little more than an extreme left-wing political rant. Here are a few examples of politics posing as economics:
    Prestige would only drop with foreign leftists while financial interests would continue to see stable prices for US currency, debt, and equities.
    --and that assumes no change in anything else. Things change. Grown-ups deal with it.
    Some rating agencies have talked and others have already downgraded US debt. Market values of US debt are unchanged and that means the markets have downgraded their rating of the rating agencies. Remember that a few years ago both Moodys and S&P failed to downgrade mortgage debt portfolios until market values had already collapsed.
    In a business world where poeple work for a living, PV's have clear and specific planning uses. Government agencies use them for justifying spending.
     
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  3. william the wie
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    william the wie Gold Member

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    Largely agree with expat on this one but a little exposition is needed.

    The welfare states of Europe, the Far East and the British commonwealth are built on US garrisons and military spending directly and indirectly subsidizing those economies.

    There are only two sources of the revenue needed that are big enough to balance the US budget: entitlements and defense. Both need to be cut drastically with most defense cuts coming out of the garrisons.

    Places where US garrisons have been pulled out, Greece, Iceland and the Philippines, generally have not done well. Panama is the major exception.
     
  4. Truthmatters
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    Truthmatters BANNED

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    Republicans in Congress, not wanting to appear to defend the rich, have attempted to block any deal that includes higher taxes on the grounds that tax hikes are “job-killing.” But experience shows that in a period of slack demand like the present, tax hikes are no more job-killing than spending cuts, and probably less so. Cutting spending — say, by firing federal employees or canceling procurement — removes demand from the economy dollar-for-dollar. A dollar tax hike, on the other hand, especially one aimed at upper incomes, cuts demand by less than a dollar. Those who pay the tax cover part of it from their savings and only part by reducing their spending. If lawmakers insist on using the phrase “job-killing,” Roberton Williams, a senior fellow at the Brookings Institution-Urban Institute Tax Policy Center, wrote in a recent blog post, “they should apply it equally to both tax increases and spending cuts.”
     
  5. mudwhistle
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    mudwhistle Diamond Member

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    Steven Spielberg couldn't have written more unbelievable fantasy. We've had no tax cuts in over 7 years, only tax increases and the threat of more to come and because of this the economy is in the toilet.

    This phony debt-crisis is only about raising taxes. Not on the rich, but on all of us. The trick all along has been to make us feel it was necessary.

    Well, I don't think it's gonna work, and I'm afraid the left will find out what people think of this scam Nov. 2012.
     
    Last edited: Jul 31, 2011
  6. KissMy
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    KissMy Free Breast Exam

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    Firing a job killing government employee & taking away their defined benefit pension is always the best form of stimulus.
     
  7. mudwhistle
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    mudwhistle Diamond Member

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    If you want to start firing federal employees start with the IRS, EPA, and the Dept of Education. All of them cost more then they're worth.
     
  8. expat_panama
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    expat_panama Silver Member

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    The budget numbers for 2010 are found at Budget of the United States Government: Historical Tables Fiscal Year 2012 . Here they are in $millions:

    Deficit: $1,147,700

    Spending:

    National Defense $693,586

    Human resources
    Education, Training, Employment, and Social Services $127,710
    Health $369,054
    Medicare $451,636
    Income Security $622,210
    Social Security $706,737
    Veterans Benefits and Services $108,384​
    [total human resources] $2,385,731
    Everything else $376,883​

    [total spending] $3,456,200
    We don't spend that much on defense. We could cut all defense spending completely and not balance the budget. The deficit is almost twice defense spending. We spend a huge amount on welfare. We could balance the budget from welfare alone and not even cut it by half.
     

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