Quote:
Originally Posted by westcoastforme
This insanity has got to stop.
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Just wait a few years.
The unfunded liabilities for the Euro-States for their healthcare and pensions is unsustainable and no amount of taxation will fix the problem.
For example, Germany claims its unfunded liabilities are only 80% of GDP, but a number of independent sources say differently. The Market Economy Foundation puts it at 228% of GDP and the EU Central Bank says Germany owes 276% of it's GDP.
The Euro-States will have to cut healthcare spending, which means people won't get healthcare and slash pensions. Those liabilities range from 75% of GDP for Britain --assuming they're telling the truth -- and 300% for Italy (who is telling the truth).
France has already slashed its pensions from 50% to 37.5% and will have to cut those further to at least 32.5% if not 28%.
But...they do have money.
That money is in the form of US treasury securities.
What do you suppose will happen if the Euro-States start dumping their US treasury securities to get cash to pay for healthcare and pensions?
Can you say rampant Monetary Inflation?
Quote:
Originally Posted by westcoastforme
The government needs to axe the federal reserve and print its own money which it is allowed to do.
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Um, the government does print its own money.
You seem to be totally ignorant of the process.
The process is simple:
1) Government spends in excess of what it collects in revenues;
2) The excess occurs monthly
3) The federal reserve packages the deficit as marketable securities and sells them
4) That process prevents Monetary Inflation from destroying your life and your economy.
If you remove the Federal Reserve from the equation, nothing different happens.
1) the government does nothing and rampant Monetary Inflation destroys your life and your economy; or
2) the government directs the US Treasury Department to package the deficit as marketable securities and sell them, which is exactly what you do now; or
3) the government borrows money from private banks who also package the deficit as marketable securities and sells them
So what's different?
You have a spending problem and both Parties are responsible for it (and irresponsible).
It's not the fault of the Federal Reserve if Congress can't balance the budget. It's not the fault of the US Treasury Department and it's not the fault of any other entity, except Congress.
It's also the fault of Presidents, because they can veto the budget bill and demand that Congress act responsibly and hold Congress accountable, but none ever have.
And it's your fault, because you keep electing the same morons.
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