The folly of raising the debt limit. (payment, economy, dollar)
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you gotta love CNN. they tell everybody not to panic and then post this:
With the looming possibility of the United States defaulting and receiving a downgraded credit rating, financial experts continue to advise Americans not to panic. Instead of clearing your entire portfolio before the August 2 deadline, stay the course and stick with your initial investment plan, they say. Financial analysts also agree that now is a good time to check to see if your portfolio is diversified enough to weather a crisis.
If the debt ceiling isn't raised, government investments will likely be hit hardest, and the one in six Americans dependent on "safety net" programs may see their assistance delayed. Food stamps, Medicaid, housing assistance and unemployment benefits are all programs that could be delayed or even halted.
no fear tactics there.
i guess it never occurred to them that the government could cut its wasteful spending first.
If the Tea Party gains power, well, there is always Europe.
If the Tea Party actually gained power, it would last about 1/2 a day before totally imploding. Present numbers are that nearly 1/2 the US already blames them for the childish mess they are creating. By the time they get done, they are actually going to make Obama look better -- which is a rather hard trick to do.
They know nothing of leadership, just opposition. Their only true uniting feature is that they hate Obama enough to wreck America to "get him." Truly bizarre to watch. Opposition groups that exist solely for opposition are always self-destructive.
I do have a real question for you -- user_id, that is. I know that you reject that we are tracking a 1930's depression model, but I still sort of see it mapping along, year-by-year.
If the Tea Party does pull-off shutting off the headlights and crashing the country -- how does that match on any analog the "austerity" hits of 1937, which plunged the US (again comparing the 1930's modeling) back downwards.
i thought that i would try and lighten the debt ceiling mood with this from zero hedge. i especially liked the "timmy the zodiac treasury secretary" letter.
This is a great article that outlines the exact problem in a nutshell..... well worth reading.
Interesting read. Thank you, Jim.
If I am reading that correctly -- across the Sun-Tzu caution of know-the-enemy, and know-yourself -- aside from the totally-marketed and brain-dead who chant liberal-conservative-demo-repub nonsense -- the ONLY real enemy on the field is the "Corporation." Or at least what we-the-people have let Corporations become in the US.
Looking at what and how they operate, Corporations are:
Immortal -- they do not die, and any more, no matter how bad they operate, they do not face a "death penalty."
Amoral -- their primary ethos is greed. To maximize the wealth of the shareholders, if I recall correctly.
AND
More Powerful than We the People.
Adding all that up -- Immortal, Amoral, Powerful. Sounds like a Demon to me.
I have sometimes mused that if God(s) did not exist, we would tend to create them in our own image. Seems that may be the case with the Demon side of things, as well.
If the Tea Party actually gained power, it would last about 1/2 a day before totally imploding. Present numbers are that nearly 1/2 the US already blames them for the childish mess they are creating. By the time they get done, they are actually going to make Obama look better -- which is a rather hard trick to do.
They know nothing of leadership, just opposition. Their only true uniting feature is that they hate Obama enough to wreck America to "get him." Truly bizarre to watch. Opposition groups that exist solely for opposition are always self-destructive.
I do have a real question for you -- user_id, that is. I know that you reject that we are tracking a 1930's depression model, but I still sort of see it mapping along, year-by-year.
If the Tea Party does pull-off shutting off the headlights and crashing the country -- how does that match on any analog the "austerity" hits of 1937, which plunged the US (again comparing the 1930's modeling) back downwards.
A country which has to continually increase its debt limit is inherently unsustainable and will eventually collapse in the long term. The tea party is right in telling everyone that the spending has got to come to an end. The real thing to consider is that this is a long term vs short term debate. The tea party is looking at the long-term picture. What happens 5 years down the road when debt to GDP ratio is 150%? Meanwhile the democrats are only looking at the short-term picture of what will happen to their agenda if the spending is slashed. The democrats could frankly careless what happens to the country in 5 years, most of them will be long gone.
Right now the US is in a bad position. We are well on our way to what is happening to Europe right now if we don't balance the budget. If we kick the can down the road long enough we will have revolution not recession.
None the less, for anyone wondering. This is the buying opportunity of a lifetime in the stock market.
A country which has to continually increase its debt limit is inherently unsustainable and will eventually collapse in the long term. The tea party is right in telling everyone that the spending has got to come to an end. The real thing to consider is that this is a long term vs short term debate. The tea party is looking at the long-term picture. What happens 5 years down the road when debt to GDP ratio is 150%? Meanwhile the democrats are only looking at the short-term picture of what will happen to their agenda if the spending is slashed. The democrats could frankly careless what happens to the country in 5 years, most of them will be long gone.
Right now the US is in a bad position. We are well on our way to what is happening to Europe right now if we don't balance the budget. If we kick the can down the road long enough we will have revolution not recession.
None the less, for anyone wondering. This is the buying opportunity of a lifetime in the stock market.
has anyone figured out how much debt we can actually sustain (considering tax rates stay the same and the "bush tax cuts" dont expire)?
right now, we are on a path to have around $30 trillion in debt in 10 years, as opposed to the $14 trillion we have now. so what can we really handle?
we shouldnt even be able to raise federal government debt because its just a tax that we force on future taxpayers.
A country which has to continually increase its debt limit is inherently unsustainable and will eventually collapse in the long term. The tea party is right in telling everyone that the spending has got to come to an end. The real thing to consider is that this is a long term vs short term debate. The tea party is looking at the long-term picture. What happens 5 years down the road when debt to GDP ratio is 150%? Meanwhile the democrats are only looking at the short-term picture of what will happen to their agenda if the spending is slashed. The democrats could frankly careless what happens to the country in 5 years, most of them will be long gone.
Right now the US is in a bad position. We are well on our way to what is happening to Europe right now if we don't balance the budget. If we kick the can down the road long enough we will have revolution not recession.
When you are down on your back, there becomes only one way to go. Up. The only path out is up. That is beauty of "hitting bottom."
But for the sake(s) of the Banks and Corporations that bottom has been muddied for US. The TARP and Corporate bailouts that prevented the long-overdue deaths of major banks and corporations prevented a firm bottom.
At any rate, to turn that "bad position" upside, we could be there in 6 months. Just have to (among some very simple other things):
Stop the Endless Wars.
Reinstate tariffs on trade imbalance.
Begin a plan and path to take US off Oil.
Reinstate Glass Steagall
End usury on money.
Issue money debt and interest free.
Would balance the budget quickly and be a cause of major growth and employment in the US.
Totally Constitutional, and most of US all would like and approve of these.
While that would likely wipe-out some large corporate interests -- such as some banking, energy corporations, weapons contractors and Wal-mart -- show me the real loss in that?
Quote:
None the less, for anyone wondering. This is the buying opportunity of a lifetime in the stock market.
If I am reading that correctly -- across the Sun-Tzu caution of know-the-enemy, and know-yourself -- aside from the totally-marketed and brain-dead who chant liberal-conservative-demo-repub nonsense -- the ONLY real enemy on the field is the "Corporation." Or at least what we-the-people have let Corporations become in the US.
Looking at what and how they operate, Corporations are:
Immortal -- they do not die, and any more, no matter how bad they operate, they do not face a "death penalty."
Amoral -- their primary ethos is greed. To maximize the wealth of the shareholders, if I recall correctly.
AND
More Powerful than We the People.
Adding all that up -- Immortal, Amoral, Powerful. Sounds like a Demon to me.
I have sometimes mused that if God(s) did not exist, we would tend to create them in our own image. Seems that may be the case with the Demon side of things, as well.
So. How to neuter The Corporation?
That just about sums it up. The thing that is ironic is that corporate exploitation of the working class is nothing new.
The forefathers mistrusted corporation as much as they did central banking. They were very aware how they worked in tandem in Europe to create a perpetual class of peasants.
They instituted strict regulations on corporations including a time limit on how long a corporate entity could exist.
Theodore Roosevelt declared war against corporations more than 100 years ago, breaking them up and introducing anti-trust legislation.
However corporations are like insects, and regardless of the effort you put into exterminating them, they just slowly recover and return to their parasitic ways.
The forefathers understood this when they talked about the need for some form of revolution periodically.
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