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Business probably needs a State Department more than any individuals do. Treaties between foreign nations often involve issues such as Trade and Tariffs. These treaties are negotiated by diplomats in the State Department.
Individuals need a State Department because all of us have an abiding interest in peace. If we had presidents who relied more on diplomacy as opposed to military force the whole fiasco in Iraq could have been avoided. The problems with Afghanistan probably could not have been. However, I think we might be in a situation where we could have left that country completely by now. What State Departments seldom get is credit for the wars and conflicts that they prevent.
what a joke. we dont need a $50 billion state department for trade treaties and diplomacy. we have more than enough politicians as it is. nothing comes out of the state department of any value.
what a joke. we dont need a $50 billion state department for trade treaties and diplomacy. we have more than enough politicians as it is. nothing comes out of the state department of any value.
I'm sure the State Department has fat in it that could be cut just as any government agency. However, to assert that it has "no value" when this department has negotiated scores of international trade agreements that have brought thousands of jobs to this country and has prevented wars and armed conflicts is totally devoid of logic.
Again, I'd ask the other people who read your other posts to pay special attention to your posts about the State Department. I think its a real clue to their "value" and common sense.
I'm sure the State Department has fat in it that could be cut just as any government agency. However, to assert that it has "no value" when this department has negotiated scores of international trade agreements that have brought thousands of jobs to this country and has prevented wars and armed conflicts is totally devoid of logic.
Again, I'd ask the other people who read your other posts to pay special attention to your posts about the State Department. I think its a real clue to their "value" and common sense.
you are giving them credit without know what they actually are doing for these "treaties" or if these "treaties" would get accomplished without them. the state department is 100% fat.
If the US decided to draw a line in the sand and freeze its debt limit at present levels it would actually be positive for US debt and the dollar, as it would raise confidence that the US was serious about getting its problem under control. The world would not come to an end and we would all get up tomorrow and do what we do every other day.
The Federal Government would simply have to do the same thing every State and local government has to do, deal honestly with their financial condition.
This is so fundamentally crazy.... Not raising the debt ceiling would result in a default on treasuries. A default would not be positive for the dollar, unless you think a collapse in the value of the dollar is good. How in the world can a default increase confidence? That is the very thing bond investors worry about.
But sure the world wouldn't come to an end, the US economy would just be pushed into a depression.
Anyhow, the two largest components of government spending are social security and medicare, so what we are really talking about is reducing social security and medicare benefits for current retirees.
every state has its own government. there is a lot of unnecessary duplication at the federal level. you have a federal EPA, department of education, department of health, department of energy, etc. where you have corresponding agencies or overlapping responsibilites within states that makes it pretty non-essential on a federal level. they should either be eliminated or cut down to some kind of federal oversight body with little to no operational capacity.
This is so fundamentally crazy.... Not raising the debt ceiling would result in a default on treasuries. A default would not be positive for the dollar, unless you think a collapse in the value of the dollar is good. How in the world can a default increase confidence? That is the very thing bond investors worry about.
But sure the world wouldn't come to an end, the US economy would just be pushed into a depression.
Anyhow, the two largest components of government spending are social security and medicare, so what we are really talking about is reducing social security and medicare benefits for current retirees.
Whether or not it would result in default is debatable.
I think you underestimate the investors.
A program of emergency spending cuts/tax increases, and debt restructure would be the most probable outcome.
The point is, it would put a stop to the hemorrhaging, and yes, that would be positive for the dollar.
If you were an investor with large amounts to invest what are your options?
China? They are on the verge of their own economic collapse, as is Europe.
Commodities? Already over inflated.
The Yen? Japan is reeling from economic problems with no end in sight.
No other markets are large enough to handle large transfers without mass inflation. If you doubt that look at Brazil.
The US, with a serious commitment to get its finances in order is the best bet going.
Would Social Security and Medicare take a hit? Probably, but they will regardless, if we do it now it will be by cuts, means tests.
If we wait, it will be inflation that will erode its value as the dollar depreciates from higher debts and never ending money printing.
Taxes will have to be increased to cover the fasting growing part of the budget, which is debt service.
The real issue here is to recognize that this situation is impossible to deal with in a piecemeal method. No one will sit still for having their piece of the pie decreased without a fight. The resulting political fighting and arguing will drain the energy needed to deal with the problem.
It will take drastic measures to enact the kind of changes that will be necessary to stop the insanity that now passes for fiscal policy.
It will take an emergency.
What we currently have is a house collapsing from dry rot. We can continue to try to brace it and patch it knowing it will eventually collapse and all of our efforts will have been in vain, or we can begin to demolish and rebuild so we will eventually have a sound structure.
Whether or not it would result in default is debatable.
I think you underestimate the investors.
A program of emergency spending cuts/tax increases, and debt restructure would be the most probable outcome.
The point is, it would put a stop to the hemorrhaging, and yes, that would be positive for the dollar.
If you were an investor with large amounts to invest what are your options?
China? They are on the verge of their own economic collapse, as is Europe.
Commodities? Already over inflated.
The Yen? Japan is reeling from economic problems with no end in sight.
No other markets are large enough to handle large transfers without mass inflation. If you doubt that look at Brazil.
The US, with a serious commitment to get its finances in order is the best bet going.
Would Social Security and Medicare take a hit? Probably, but they will regardless, if we do it now it will be by cuts, means tests.
If we wait, it will be inflation that will erode its value as the dollar depreciates from higher debts and never ending money printing.
Taxes will have to be increased to cover the fasting growing part of the budget, which is debt service.
The real issue here is to recognize that this situation is impossible to deal with in a piecemeal method. No one will sit still for having their piece of the pie decreased without a fight. The resulting political fighting and arguing will drain the energy needed to deal with the problem.
It will take drastic measures to enact the kind of changes that will be necessary to stop the insanity that now passes for fiscal policy.
It will take an emergency.
What we currently have is a house collapsing from dry rot. We can continue to try to brace it and patch it knowing it will eventually collapse and all of our efforts will have been in vain, or we can begin to demolish and rebuild so we will eventually have a sound structure.
i am always interested in those responses that say that slowing down our overspending will kill this economy and that learning to live within our means will be detrimental to our country! i also find it interesting that moody's,(you remember their veracity) threatens to downgrade us if we start living within our means. go figure.....
we must be the only country in the world where a massive debt burden is seen as a good thing by some people.
i see that portugal, another one of the PIIGS, is in serious trouble now:
If the debt limit is not raised, it's Armageddon for the US economy.
That is what steepened the Depression of the 30s, lack of credit and lack of borrowing capability and investors will refuse to take a leap of faith in the US market.
The US cannot default. The ceiling will be raised in due time. Just more political drama.
If you were an investor with large amounts to invest what are your options?
There are many options and most treasuries are owned domestically, either by the fed, social security trust fund or individual and institutional investors.
There is an entire world to invest in, the only thing that keeps money in treasuries is their safety, a default or "restructuring" would change everything.
Also, the underlying premise here is crazy, namely, the idea that investors are worried about the finances of the US. Interest rates on treasuries are at historic lows, yet there is suppose to be some major concern!? Makes no sense at all. The only thing investors are worried about at this point is republicans playing political chicken with the debt ceiling, that is the only thing that will have an immediate impact on them.
Quote:
Originally Posted by jimhcom
Would Social Security and Medicare take a hit? Probably, but they will regardless, if we do it now it will be by cuts, means tests.
The US has decades to fix social security and medicare, on the other hand if you don't raise the debt ceiling seniors will immediately receive a sizable reduction in their social security and medicare payments. How exactly are these people going to manage?! Again...makes no sense.
Quote:
Originally Posted by jimhcom
The real issue here is to recognize that this situation is impossible to deal with in a piecemeal method.
Huh? This is ridiculous, when Clinton was president the US finances started to improve.
Anyhow, not raising the debt ceiling is ridiculous, utterly ridiculous. The government deficit can be brought down to a reasonable level by just reversing the Bush tax cuts (i.e., a return to Clinton level taxation). This is just an attempt by Republicans to finally achieve their reversal of the depression era social safety net. It would be a huge step back for all but the wealthiest Americans.
If the debt limit is not raised, it's Armageddon for the US economy.
That is what steepened the Depression of the 30s, lack of credit and lack of borrowing capability and investors will refuse to take a leap of faith in the US market.
The US cannot default. The ceiling will be raised in due time. Just more political drama.
even if the debt limit werent raised, we wouldnt default. the bond obligations will be met. we cant afford not to because we have over $14 tirllion in debt. tons of wasteful government would need to be cut. unforunately, the cuts wouldnt be be in the waste, they would be in the places that would most hurt us to force an increase. thats what government does. they dont cut what you want, they cut what you dont want cut to teach you not to limit their crazy spending.
the ideal scenario would be an increase in the debt limit and a plan to cut spending to where we have a balanced budget within 10 years. however, that wont happen. the debt limit will be increased, spending wont be cut and within 2 years we will run out of money and borrowing capacity. then we will have to cut spending at the point of a gun basically.
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