Why Are Politicians Not Increasing Spending?

Discussion in 'Politics' started by BakshisMouse, Dec 27, 2011.

  1. BakshisMouse
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    BakshisMouse BANNED

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    Read these two stories:

    Wonkbook: On debt, the conventional wisdom vs. the markets - The Washington Post

    America Is Not Exceptional - NYTimes.com

    As much as the politicians in Washington are telling us that doom is imminent if spending is not gutted, the risk of holding US bonds is very low:

    [​IMG]

    A country that is about to default would have extremely high interest rates, and yields for its bonds would be through the roof.

    Our national debt, the hawks like to point out, is $15.1 trillion. Believe it or not, that is actually manageable, especially considered as a percentage of GDP. Could it be that some politicians and pundits are exploiting this number just to advance their political goals. Make the electorate think that the reason that unemployment is 9% is those nasty welfare recipients.

    Why shouldn't we try to spend our way out of this? Yes, the stimulus package passed a few years ago was ineffective, but could it be because the original one was too small and poorly designed?

    To those of you who say this is totally off base: what do you think that our real interest rate is telling us about our economy?
     
  2. occupied
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    occupied Gold Member

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    Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.
     
  3. freedombecki
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    freedombecki Let's go swimmin'! Supporting Member

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    Your thread is listed as "Why are politicians not increasing spending?"

    Then you answer the question by saying hawks point out a 15 trillion national debt which you claim is manageable.

    What does being a "hawk" have to do with resolving the national debt issue?

    Your stated panacea is that original stimulus packages was too small and badly designed, and that we should try to spend our way out of this.

    So, with no other answer that the one you want to hear, I think you may see the American people panicking at the polls and going for a debt payoff.

    Spending ourselves into oblivion is what got us paying out interest-only payments to creditors with nothing left over except borrowing more money.

    That is not acceptable to me.
     
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  4. American Horse
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    American Horse AKA "Mustang"

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    The Fed is keeping bond rates low by absorption. Bond buyers persist because of what's available, the US is an island of stability.
     
  5. freedombecki
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    freedombecki Let's go swimmin'! Supporting Member

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    The professional people who downgraded America's repayment ability do not agree with you.
     
  6. occupied
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    occupied Gold Member

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    That so called downgrade had no effect whatsoever on the people and countries who eagerly line up to buy our bonds.
     
  7. BakshisMouse
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    BakshisMouse BANNED

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    That was mainly because of that circus in congress that raised the debt ceiling at the last minute.
     
  8. BakshisMouse
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    BakshisMouse BANNED

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    To answer your question about "hawks", according to mirriam webster, one of the definitions of that word is "one who takes a militant attitude and advocates immediate vigorous action".

    By "going for a debt payoff", are you meaning that Americans would want the federal government to actually get the national debt to zero? Such action by the federal government would be impractical and unproductive.
     
  9. eflatminor
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    eflatminor Classical Liberal

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    Tell you what. You pay the $134,469 YOU owe first, then tell us how the debt is manageable. You wouldn't just pass this on to our children, would you? Better hurry up. The feds collect $6 billion per day but spend $10 billion. Your share is increasing rapidly.
     
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  10. eflatminor
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    eflatminor Classical Liberal

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    Incorrect. Read the ACTUAL report from the actual credit agency...not MSNBC's take...and you'll see that the downgrade was due to too much fucking spending with no plans to reduce it.
     
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