Stop running up the National debt

You have to also remember on monetary inflation that we've had decades worth of Keynesian economists that believe deflation is the absolute devil. They fight it harder than inflation. But defaltion can be a sign of a good economy/sound monetary policy.

When prices fall, purchasing power increases. Reducing the need to stimulate by creating more supply. Sure, that reduces wages too, but when prices fall, you don't require more money, so it's the same balancing act, except savers and builders win instead of borrowers and consumers.
 
There is also the suppression/manipulation of interest rates. Which is one of the keys to causing the business cycle. Which is what happened in 2006-07 with the crisis. And also the NASDAQ bubble burst. Hod the rates low, and spur borrowing, then rasie the rates and POP. Which is simply incredible considering we already know this happens, and yet now interest rates are the lowest they've ever been.

This fucks over savers in favor of borrowers. Thats the crux of a debt nation.
 
You have to also remember on monetary inflation that we've had decades worth of Keynesian economists that believe deflation is the absolute devil. They fight it harder than inflation. But defaltion can be a sign of a good economy/sound monetary policy.

When prices fall, purchasing power increases. Reducing the need to stimulate by creating more supply. Sure, that reduces wages too, but when prices fall, you don't require more money, so it's the same balancing act, except savers and builders win instead of borrowers and consumers.

But capitalism requires a continually (infinitely, really) growing economy. That's the only way that increasing profits can be assured. If deflation occurs, the capitalist machine stops in its tracks--investment becomes a disincentive because it reduces short term profits with no assurance of long term benefit. It's not just Keynesians that fear deflation; the entire economic system fears it.
 
There is also the suppression/manipulation of interest rates. Which is one of the keys to causing the business cycle. Which is what happened in 2006-07 with the crisis. And also the NASDAQ bubble burst. Hod the rates low, and spur borrowing, then rasie the rates and POP. Which is simply incredible considering we already know this happens, and yet now interest rates are the lowest they've ever been.

This fucks over savers in favor of borrowers. Thats the crux of a debt nation.

I enjoy this conversation, TASB.

I believe that business cycles are triggered by consumer debt and spending. Consumers spend based upon their disposable incomes; in the last few decades, their real disposable incomes have been in decline. Consumers compensate by spending debt. When their debt levels become too high (when their incomes don't rise to meet new debt obligations), they reign in their spending. This begins the recessionary portion of the cycle as consumer spending tanks, businesses lay off workers due to reduced revenue, and consumers spend even less due to less income. This continues until debt service levels and income reach equilibrium (through default, refinancing, asset liquidation, etc.).

Since consumer spending is about 2/3 of our economy, though, the entire system urges consumers to resume spending--through deficit spending, usually, that inserts more money into the cycling economy. And easing credit.

That seemed like a hurried explanation; I hope it made sense.
 
That's not true at all.

Sure it is. Adam Smith said so himself! That's why he stated that regulation is absolutely essential to prevent a capitalist economy from consuming itself.

"I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country."

- Thomas Jefferson

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As of Wednesday December 5th the United States National debt was calculated at $16, 338, 943, 716, 61 dollars. Every man women and child owes 53,775 for their share of the national debt. I hope these numbers shock people and make them realize what impact this has on our lives. This is a disgrace in my opinion. The American people should not be subject to have to pay for a debt that they had no part in creating.

As most people know there is an ongoing argument discussion into what is being called the fiscal cliff. There’s a thing in place called the Bush tax cuts. On December 31st at midnight these tax cuts expire. To be honest I have no idea what it all entails. What I do know is it raises taxes on everybody. This in turn could prove as a disaster for the American economy

The American economy is already a disaster in my opinion were a Country that spends too much on things. We as Country spend $11.00 for every $7.00 brought in. Ask yourself this if you ran your house like United State Government runs the Country we would all be homeless. This is a travesty to the future of this Country. The children of this Country deserve better

Stop screaming nonsense! Our biggest problem is a weak economy and the lack of jobs -- not the debt or deficits.
He is not screaming nonsense. One cannot borrow one's way to prosperity. At some point there will be a request for PAYMENT OF DEBT!

Credit Card companies often send me lucrative offers to increase my credit limit. I do not partake of them as I practice full payment of my borrowed money (credit card purchases) at the end of every month. I never spend my limit in any one month.

Any credit card company handling finances for the US government would have cut off their credit years ago. Unfortunately, just as congressmen can vote themselves a pay hike, they can vote to increase the debt limit of the United States, thereby extending their ability to spend money that WE DO NOT HAVE on things that WE DO NOT NEED so they can placate their constituents that DO NOT CARE ABOUT WHAT OTHER PEOPLE HAVE TO PAY IN ORDER FOR THEM TO GET WHAT THEY WANT FOR THEMSELVES!

Try to run your family finances the way Congress and the President run the country's finances and you will be flat broke within a year. The handling of the US Treasury is abysmally lacking in foresight and good judgement.

Unfortunately (I think) we have gone over the edge already. There will be no return to normalcy and certainly no adoption of prudent, wise measures by the golden boys in Congress. We are doomed to be in debt forever! Even Bill Clinton will tell you...there never was a fuckin' surplus of money!


BY THE WAY....Unemployment just went back up over 8%....AGAIN!
 
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You have to also remember on monetary inflation that we've had decades worth of Keynesian economists that believe deflation is the absolute devil. They fight it harder than inflation. But defaltion can be a sign of a good economy/sound monetary policy.

When prices fall, purchasing power increases. Reducing the need to stimulate by creating more supply. Sure, that reduces wages too, but when prices fall, you don't require more money, so it's the same balancing act, except savers and builders win instead of borrowers and consumers.

But capitalism requires a continually (infinitely, really) growing economy.

No, what capitalism requires are free markets, and that includes free banking or voluntarily determined mediums of exchange. The privately owned means of production and profit. A slow economy with low profits that operates under these conditions constitutes capitalism. It can be as small as say, the trade between banished colonists of colonial times with indians under anarchism. It requires no further actions and growth can be slow going. It's dependent on resources, land, means of production, etc...


That's the only way that increasing profits can be assured.

Increase in profit is not assured in any capitalist system. Many capitalists will fail. Many will maintain and some will profit modestly. Nothing is a sure thing in true capitalism.

If deflation occurs, the capitalist machine stops in its tracks--investment becomes a disincentive because it reduces short term profits with no assurance of long term benefit. It's not just Keynesians that fear deflation; the entire economic system fears it.

That's not a capitalist machine and neither is what we have now. It's crony capitalism or corporatism you're referring to. And yes, THAT requires a debt nation and inflation to confiscate wealth in a maximum fashion.

Capitalism doesn't require a modest inflation and in fact, would do best under an extremely modest rise in prices on average over time. It requires a sound money system, not a floating fiat keynesian ponzi scheme to confiscate wealth. Deflation would be a normal mode in a true capitalistic society and would be welcomed.
 
First of all 86 Trillion is beyond a ridiculous number. President Obama has borrowed more money than any President in history of the Oval office. This Country has spending problem. We have a dollar we will spend it. That is why were over 16 trillion in debt. Here is a link to the real problems of our spending a lack of jobs and being a food stamp welfare Country
Welfare Statistics | Statistic Brain
 

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