Buys Ad To Warn About Socialism

[EdwardBaiamonte]

It is of profound importance that our financial system should be promptly investigated, and so thoroughly and effectively revised as to make it certain that hereafter our currency will no longer fail at critical times to meet our needs."

That of course was idiotic wishful liberal thinking at a time when monetary policy was not understood well at all. Milton Friedman did not write the "Monetary History of the United States" until decades later. That book verified the libertarian/conservative theory that liberal stimulus magic was impossible and had never worked.

 

[oldfart]

did predict the present situation where a quadrupling of the monetary base resulted in no inflation (when right-wingers were predictiong hyperinflation which never happened)

too stupid and perfectly liberal!! inflation was always spoken of in terms of quantity and velocity!!!

That's funny. I always thought that inflation was an increase in price level. That the demand for money is the product of the monetary base times the velocity of money is not a theory, its an accounting identity (assuming you know the difference which I strongly suspect you do not). And you dodged the question: why did a a quadrupling of the monetary base not result in the hyperinflation which every Austrian school hack had predicted? Did the velocity of money fall? Is not that the definition of a liquidity trap straight out of Keynes' General Theory?

 

[oldfart]

inadequate stimulus (Christine Romer's estimate was that $1.8 trillion was needed) would result in anemic recovery.

too stupid but 1000% liberal!!! If recovery is enemic it is because of inadequate austerity! Austerity means fiscal responsibility like in Greece where they are learning to live within their means and create a sound basis for real economic growth rather than look to more and more liberal mal-investment and depression.

4) Europe is trying to steal money from Germany that Germany has thanks to austerity!!

Austerity in Europe is working wonderfully!! Their numbers are getting better while ours are getting worse!!!The idea that tax and spend idiotic liberalism will get us to a smaller debt is identical to saying more drugs will cure the junkie. How stupid can a liberal be???

Only a blind stupid monkey liberal would say more drugs would work. Why be so afraid to explain how on earth that is possible???? What does your inability tell us say about the IQ and character of liberals???????


Wolfgang Schauble:

"According to the latest estimates, the Euro zone's budget shortfall should be 3.2% of GDP this year, half the level of 2009 and well below the deficits of the USA and Japan. In the last 3 years the structural deficit- the fiscal shortfall adjusted for the change in the business cycle- has shrunk to
2.1% from 4.6%.

After years of steady rises in Spain Portugal and Greece and other places the current account deficits have fallen rapidly driven not just by retreating consumption and imports but also, crucially, by rising exports.

Unit labor costs in Ireland and Greece have dropped 12% since 2009 and by 6% and 5% in Spain and Portugal respectively. As the OECD acknowledged in its recent "Going for Growth"
the crisis has served as a catalyst for structural reform in those countries that most needed it, particularly in the labor market.

As these trend show Europe's crises management has proved itself."

Frankly your post is incoherent; so I will give you an opportunity to revise it into something recognizable as an economic argument. Austerity has been such an unmitigated disaster that the Euro is now unsalvagable, and even the IMF has reversed course. Germany is sliding into recession as we speak and the chickens come home to roost. Apparently they did not consider that austerity in the rest of Europe would tank their export market.

BTW, I eagerly anticipate your projections for the next six months. You haven't forgotten have you? I am tweaking my model so I can publish mine in the near future.

 

[daveman]

...and that inadequate stimulus (Christine Romer's estimate was that $1.8 trillion was needed) would result in anemic recovery. .

I've been asking this question for a long time, but have never gotten a rational answer from a stimulus supporter:

What happens to a government-funded job when the government funding runs out?

Unsurprisingly, no answer is forthcoming.

 

[polarbear]

Stupid rich guy. Doesn't he know the only rich people allowed a voice in politics are those who support Democrats?

Right, USMB lefties?

While we are debating what a "fair share" is, the not so stupid rich guys do it like this (with the blessing of Democrats I should add):
http://www.dddb.net/documents/IRS/IRS_CONGRESSIONAL_LETTER.pdf

In 2006 the Bloomberg Administration successfully lobbied the IRS to grant a special ruling stating that tax-free bonds issued by the IDA for new Yankees and Mets baseball stadiums could be repaid using PILOTs (payments in lieu of taxes). Many tax experts believe that is in direct contradiction to the intention of the 1986 Tax Reform Act –championed by the late Senator Daniel Patrick Moynihan - which explicitly stated that bonds sold for future sports construction projects would be taxable

It`s amazing, here is just a small sample what You can find if You enter these search parameters into the Google search engine:
-inurl:htm -inurl:html intitle:"index of" "Last modified" intitle:"irs"

and You can find tons of interesting documents, like this scam

http://www.dddb.net/documents/

http://www.dddb.net/documents/IRS/080714_IRS_Letter.pdf

However, the Ratner Arena Letter fails to explain that ESDC/LDC/FCRC will not peg the
PILOT to any actual assessed foregone property tax, but rather will fabricate a number working
backwards from their calculation of what is necessary to pay the debt service to pay towards the
private arena facility. We note that the operative documents have provisions to manipulate the
sizing of the tax-exempt bond issuance so as to maximize it for the developer’s benefit. Further,
these same payments, if not used by the developer for tax exempt bonds are being returned to the
developer to run his private enterprise thus emphasizing that the theoretical tax payments are
being discretionarily sized to benefit the developer as a tax-avoidance/evasion device.
Conversely, the way in which New York real property taxes are set involves formulaic programs
and the developer has independently represented to New York media that if bonds are not issued
supported by these payments they would participate in various tax abatement, tax exemption
programs, (this includes as-of-right programs) so that the amounts to support the bond would not
otherwise ever be paid as taxes.
The artifice and device nature of these manipulations is quite transparent and we do not
believe that current IRS regulations allow this and do not believe the Proposed Regulations
permit nor should be interpreted to allow such artifice and device.
Plans for the FCRC arena and overall project of which it might be a part have been
evolving and with substantial changes in, among other things, the financing numbers. According
to information available, if the PILOTS cannot exceed the foregone property taxes—as stated in
the Ratner Arena Letter—then the PILOTS will not come anywhere near paying off the $800
million in tax-exempt bond financing FCRC has stated it will pursue for its currently price $950
million arena. If the PILOT were really pegged to foregone taxes, the developer would be
approximately $40 million dollars short of the roughly estimated $48 million annual bond
payment. If those numbers are not precise, it is clear that FCRC would be substantially short of
the roughly estimated annual bond payment if the PILOT were truly pegged to assessed property
....property tax at the Atlantic Yards arena at only $3.85 million.
The value of Madison Square Garden, IBO’s George Sweeting told me in a recent email, is now calculated for tax purposes
at $250/sf. So even if doubled to $200/sf, the foregone property tax for the AY arena would be less than $8 million a year--
a reasonable ratio if the figure for Madison Square Garden is $11 million.
Sweeting noted that the agency’s 2005 analysis “was based loosely on the Department of Finance’s official market value
for MSG at the time, discounting for differences in land value. It is probably true that neither the MSG value assigned by
the city, nor the AY arena value estimated by IBO, reflect the actual cost somebody would pay to buy the land and build a
new arena. We based our value on an assumption that whatever the Finance Department is doing when valuing MSG, they
would do for AY.”
If so, there would have to be a lot more taxable bonds than currently contemplated. So what would be the regular property
tax amount for the AY arena? That issue becomes ever more worthy of scrutiny as the question of PILOTs for Atlantic
Yards emerges. How can the foregone property tax--which would seem to be less than $10 million--match up with PILOTs
that could well exceed $40 million?
4 The Barclay Center Nets Arena construction cost was $637 million when approved in December 2006. On March 21,
2008—only 15 months later—FCRC’s CEO Bruce Ratner told the NY Times the arena cost has escalated to $950 million.

http://www.dddb.net/documents/AYSenateHearing_090529.pdf

My sincere condolences regarding tonight`s election outcome.

 

[EdwardBaiamonte]

Germany is sliding into recession as we speak

And yet Germany is for austerity and fiscal responsibility in the rational belief that people and nations ought to live within their means as a way to insure long term growth!!

A recession or withdrawal from addiction may be painful but that does not mean it is unnecessary!!!

If your friends or neighboring countries go into withdrawal after an unsustainable addiction you may suffer too.

Most importantly there is no economic pump to prime as liberals idiotically believe since an economy does not function like a water pump.

Once you withdraw the pumping or stimulus from a real water supply the water keeps going but once you withdraw the economic pumping or stimulus from an economy the economy slows and is worse off from the housing bubble mal-investment, for example.


See why we are positive a liberal will be slow, so very very slow.

 

[EdwardBaiamonte]

What happens to a government-funded job when the government funding runs out?

the job disappears and the job holder is less employable than ever having been side tracked for so long in a make-work job rather than preparing for a real job or getting and doing a real job.

Moreover, the economy is worse off because the tax and spend to create the make-work job would have been spent in the private sector to create a real job. One liberal make-work job means one less real, sustainable, Republican job!!

Liberals have no where near the IQ necessary to understand that. That's why they are liberals.