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Title: Debt ceiling deal does not solve our fiscal woes
Source:
The Washington Times
URL Source: http://communities.washingtontimes. ... oes-not-solve-our-fiscal-woes/
Published: Aug 1, 2011
Author: Vasko Kohlmayer
Post Date: 2011-08-01 18:35:11 by We The People
Keywords: None
Views: 82030
Comments: 139
Back slapping and smiles abounded as the president and congressional leaders reached a debt ceiling compromise last night. The deal, they said, will save us from falling over the fiscal cliff. Do not believe a word of it. The bipartisan deal does not alter the grim fact that the US government is saddled with far greater obligations than it can conceivably meet. Public debt of $14.5 trillion and long term unfunded liabilities well in excess of $100 trillion are simply an insurmountable burden. To put it plainly, the US federal government is bankrupt. The only reason its finances have not yet collapsed is due to the dollar's status as the world's reserve currency. Debt ceiling (Image: AP). Increase of debt ceiling will not address the heart of the problem. Normally when a country acquires more debt than it can carry, creditors dump its bonds and the currency falls apart. Most of our creditors know that we will not be able to pay our debts. They would love to dump their dollars, but they have a serious problem. There is really nowhere else they can put their money. Consider the alternatives. Should they sell dollars and buy euros instead? But the euro is as troubled as the dollar is. Or should they try the British pound or the Japanese yen? Those too happen to be heavily over-indebted and shaky. There are some currencies – such as the Swiss frank and the Canadian dollar – that are relatively healthy, but they are too small to be considered as global alternatives. The bottom line is that there is at the present time no currency that could reliably absorb the world's monetary reserves. The world is in a currency crisis and holders of reserves – whether national banks or private institutions – have no choice but to stick with the dollar for now. Sensing the train wreck ahead, creditors plead in desperation with our government to do something about its out-of-control spending. Unfortunately for them, American politicians – despite their rhetoric – have no intention of doing anything. Both Republicans and Democrats want the same thing: They want to spend more. The only difference between them is the kind of programs on which they want to spend. Even the fiscal hawks in the Republican party become dovish when it comes to cutting. Paul Ryan's plan The Road to Prosperity, which he released with much noise earlier this year, would not balance the budget for another thirty years. What this really means is that it would never balance the budget, because it is impossible to forecast anything with any degree of accuracy thirty years out. The far-off balancing date in Paul Ryan's budget was only a cop out. That much was obvious. Yet he still got savaged for his supposed fiscal “ruthlessness.” If the mere pretense of wanting to balance the budget makes one a political pariah, then you know we are in serious trouble as a country. If you really want to understand what is going on in our capitol when it comes to money and budgeting, you need to grasp one thing: There is only one party in Washington, D.C. It is the party of Big Spending. This is its modus operandi: The greater our debts, the more it wants to spend. Let us not forget that it was George Bush and the Republicans that set us on the road to never-ending bailouts and soaring budget shortages. Obama took it a step further and the Republicans cried fault. They complain about the deficits, but even the most fiscally “hawkish” among them do not want to balance the budget. Instead they pretend that little cuts around the edges will solve our problems. With an annual deficit of some $1.5 trillion, cutting two trillion over the next ten years is only a drop in the bucket. To have any chance, we would need to cut $1.5 trillion now just to stop the hemorrhage. This will not happen, of course. With such leadership as we have we are headed for disaster. The fact is that we are bankrupt, and we will eventually default. Raising the debt ceiling now only postpones the inevitable. Do not celebrate. Rather prepare for the crash. http://communities.washingtontimes.com/neighborhood/vasko-kohlmayers-globe/2011/aug/1/debt-ceiling-deal-does-not-solve-our-fiscal-woes/
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Begin Trace Mode for Comment # 113.
#2. To: We The People (#0)
Now that the House has passed this bill maybe Boehner and Cantor can give us their jobs plan.
ROFLMAO!!!!! I'll give you this - you have a firm grasp of the . . the . . the . . irrelevant . . . White House suck-up must pay REALLY well Meanwhile, back in the present universe . . .
Employment is irrelevant? Does that mean that we will NOT be seeing a jobs plan out of Boehner and Cantor?
Does that mean that we will NOT be seeing a jobs plan out of Boehner and Cantor? But...but...Won't that mean LESS goob over-officiousness, LESS regulations, LESS destroying the coal/oil industries, LESS farm land destruction, LESS taxes, LESS fedgov spending, getting the hell out of THREE wars, and stopping fake $800b "stimulus" programs that produced ONLY more unnecessary fedgov and union work?
Does that mean that we will NOT be seeing a jobs plan out of Boehner and Cantor? (Liberator): But...but...Won't that mean LESS goob over-officiousness, LESS regulations, LESS destroying the coal/oil industries, LESS farm land destruction, LESS taxes, LESS fedgov spending, getting the hell out of THREE wars, and stopping fake $800b "stimulus" programs that produced ONLY more unnecessary fedgov and union work? war doesn't understand the concept of perspective. In a "normal" situation, a so-called jobs bill might be relevant (although he and his statist buddies would veto any effective bill, just for the items you mentioned). But this is no way a "normal" situation. It's more like the situation circa August 1945 in Nagasaki and Hiroshima, Japan. And Zero is the one piloting the Enola Gay. Given that circumstance, I doubt the affected Japanese were worrying about "employment." But the thing to keep in mind about "war." Don't you dare criticize his god. He's got a pin-up picture of him after every post, for Pete's sake . . .
Prespective 1: Unemployment is over 9% "official" and in the teens when other aspects are factored in. GDP is 70% SPENDING. People don't spend when they aren't working. Perspective 2: Government spending accounts for $3trl of our GDP. Perspective 3: How are people waiting around for trickle down - which has never worked, btw - and cutting back 20% of GDP going to make this economy "healthy"? You can babble on about crticiziing or not criticizing Obama as if that is the debate. It isn't. Boehner and Cantor PROMISED jobs when they ran. They PROMISED jobs after they won. They PROMISED jobs with the extension of the Bush tax cuts. Where are they? It's two years after Obama took power and the GOP was able to curtail the stimulus bill to a shell of what it should have been. It's 7 months into the GOP's "resurgence" the GOP has exercised its power from the get go but, economically, the question now is WHEN DID we double dip - I'm picking June, btw,...not WILL we double dip... You can prattle on about Japan and Hiroshima as if that is some sort of argument. But you are sorely lacking on details. How will reducing spending in a down economy BOOST economic growth? How will cutting spending on infrastructure, which has a direct correlation to stimulating demand, BOOST economic growth? How will reducing education funding help this nation compete in the global market of not only hard goods but in the market of ideas as well? THOSE are the questions that YOU need to answer. My guess is that all I'll get back is more bullshit about me and Japan in a post that you forget to ping me to.
Perspective 2: Government spending accounts for $3trl of our GDP. Perspective 3: How are people waiting around for trickle down - which has never worked, btw - and cutting back 20% of GDP going to make this economy "healthy"? Where are they? Just as democrats blamed Hoover for the depression; Carter got blamed for the economic disaster of the late 70s, and your previous god Clinton got the credit for the boom-boom 90s; Obama gets the "credit" for the mess he's created. Sorry, but thems the rules. Understand now? How will cutting spending on infrastructure, which has a direct correlation to stimulating demand, BOOST economic growth? How will reducing education funding help this nation compete in the gloabl market of not only hard goods but in the market of ideas as well? THOSE are the questions that YOU need to answer. ALL GOVERNMENT CAN DO TO HELP THE ECONOMY IS GET THE HELL OUT OF THE WAY Aw, poor baby. I corrected my oversight 5 minutes later in the next post. I'll make sure to post a picture of Zero in it next time so you won't miss it.
You haven't supported your premise that the economic train wreck has anythign to do with the Obama presidency. You CANNOT make an unsupported statement and rely on that as an ongoing "truth" and, even worse, then turn it into a circular argument. Our economic woes predate Obama and he has HARDLY made them exponentially worse and, in some instances, he's abated the bleeding...or maybe you forget that we were bleeding hundreds of thousands of jobs a month when he took office?
(war): You haven't supported your premise that the economic train wreck has anythign to do with the Obama presidency. You CANNOT make an unsupported statement and rely on that as an ongoing "truth" and, even worse, then turn it into a circular argument. Our economic woes predate Obama and he has HARDLY made them exponentially worse and, in some instances, he's abated the bleeding...or maybe you forget that we were bleeding hundreds of thousands of jobs a month when he took office? Once again, you've missed the point - either deliberately or intentionally. So once again I'll try to simplyfy: Unfairly. or. fairly. presidents. get. the. blame/credit. for. the. economic. health. during. their. administrations. That. is. a. concept. that. would. be. taught. in. economic. debate. 101. (please make sure you grasp that concept before we move on) I. cited. examples. - Hoover. Carter. Clinton. - where. this. had. happened. (so far, so good?) Ergo. Obama. gets. the. credit. for. the. shitty. economy. of. 2008. to. present. And please don't insult me by spinning and twirling that the economy is all hunky dory. Ok?
Why would I? We've had an ongoing financial crisis in this nation since HUD literally gave away the banks to housing market speculators in 2003...liar loans...no money down...125% refi's... I was one of the very few who predicted it and I have my arguments with ImStillRght and Boofer at LP to prove it. I saw this mess coming a good 2 years before it hit. I called the recession to the month. There has never been an economic dislocation this severe that was "austeritied" its way out of as the Tea Party is trying to have us do...
Talking point 36A - "Demonize Tea-Party". Check. Look, you can have all the problems with the Tea Party that you want to. Me? I look at it this way. You've got a 12-alarm fire going. The building is about to burn to the ground. The tea party's solution is to piss on the fire. Zero, the estab repubs, and the leftist dems solution is to pour gasoline on the fire. In the end, both solutions will fail. (This country as we know it is toast) But at least the tea party's solution doesn't seem to be as crazy.
Where did I "demonize" the Tea Party? Hell, where did I even mischaracterize what it is that they are doing? They are trying to move the US into draconian budget cuts coupled to the evisceration of socail programs. That is a true statement, is it not? My question is, when has that policy ever worked in an economic downturn?
In the economic downturn we're currently in, it won't. I gave you my opinion in the remainder of post 92: Me? I look at it this way. You've got a 12-alarm fire going. The building is about to burn to the ground. The tea party's solution is to piss on the fire. Zero, the estab repubs, and the leftist dems solution is to pour gasoline on the fire. In the end, both solutions will fail. (This country as we know it is toast) But at least the tea party's solution doesn't seem to be as crazy
They added more gas to it than the centrists did. A few weeks ago, there was an opportunity to get not only meaningful cuts that would impact both debt and deficits but common sense revenue raising that would have not detracted from growth and further cut into debt and deficits. I have never, ever heard of anyone or anything being able to pay down debt by reducing its income.
#116. To: war, Get Outta Dodge! (#113)
I have never, ever heard of anyone or anything being able to pay down debt by reducing its income. I have never heard of a credit card company that keeps on raising someone's credit limit even after it's been determined that payments are consistently either late OR NOT rendered. The obvious and simple solution (as in individuals' case) ....is REDUCING EXPENDITURES - Something NO goobermint at any municipal, state, or fedgov level appears compelled to do because then "granny won't get her SS check." This is blackmail, plain and simple. As to the Tea Party's position....well SOMEONE has got to be the adult who sez "NO, we can't to buy afford the BMW 7 Series!! We're BROKE!!"
Can you even get it though your thick statist skull that history shows that CUTS NEVER COME? One Congress cannot demand something of a future Congress Are you really that dumb?
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#3. To: war (#2)
Now that the House has passed this bill maybe Boehner and Cantor can give us their jobs plan.
#8. To: Get Outta Dodge! (#3)
I'll give you this - you have a firm grasp of the . . the . . the . . irrelevant . . .
#18. To: war, Get Outta Dodge! (#8)
Employment is irrelevant?
#32. To: Liberator (#18)
(war): employment is irrelevant?
#37. To: Get Outta Dodge! (#32)
(Edited)
war doesn't understand the concept of perspective.
#47. To: war (#37)
Prespective 1: Unemployment is over 9% "official" and in the teens when other aspects are factored in. GDP is 70% SPENDING. People don't spend when they aren't working.
Since you're so in love with statistics, here's one for you:
Daily government spending in Zero's era: 4 billion
Daily government spending in the Evil One's era: 1.6 billion
You can babble on about crticiziing or not criticizing Obama as if that is the debate. It isn't. Boehner and Cantor PROMISED jobs when they ran. They PROMISED jobs after they won. They PROMISED jobs with the extension of the Bush tax cuts.
It's understandable that you want to defelct the blame for the economic train- wreck away from your messiah, but it doesn't work that way. You cannot arbitrarily change the rules in the middle of the game. It's two years after Obama took power and the GOP was able to curtail the stimulus bill to a shell of what it should have been.
Was that the same stimulus bill that bailed out Zero's friends and supporters in the Unions? It's 7 months into the GOP's "resurgence" the GOP has exercised its power from the get go but, economically, the question now is WHEN DID we double dip - I'm picking June, btw,...not WILL we double dip...
You say they exercised their "power" - I say they haven't. Why is Obamacare still funded? You can prattle on about Japan and Hiroshima as if that is some sort of argument. But you are sorely lacking on details.
Sorry the analogy went over your head. I'll use simpler examples next time. Here's one that's really simple. Obama = incompetent = in over his head = unmitigated disaster. How will reducing spending in a down economy BOOST economic growth?
You won't like or agree with the answer because you're a big-government statist, but here goes: My guess is that all I'll get back is more bullshit about me and Japan in a post that you forget to ping me to.
#69. To: Get Outta Dodge! (#47)
It's understandable that you want to defelct the blame for the economic train- wreck away from your messiah, but it doesn't work that way. You cannot arbitrarily change the rules in the middle of the game.
#78. To: war (#69)
(G.O.D.): It's understandable that you want to defelct the blame for the economic train- wreck away from your messiah, but it doesn't work that way. You cannot arbitrarily change the rules in the middle of the game.
#82. To: Get Outta Dodge! (#78)
And please don't insult me by spinning and twirling that the economy is all hunky dory. Ok?
#92. To: war (#82)
There has never been an economic dislocation this severe that was "austeritied" its way out of as the Tea Party is trying to have us do...
#94. To: Get Outta Dodge! (#92)
(Edited)
Talking point 36A - "Demonize Tea-Party". Check.
#105. To: war (#94)
(Edited)
My question is, when has that policy ever worked in an economic downturn?
Look, you can have all the problems with the Tea Party that you want to.
#113. To: Get Outta Dodge! (#105)
The tea party's solution is to piss on the fire.
Replies to Comment # 113. They [the Tea Party] added more gas to it than the centrists did...
#136. To: war (#113)
(Edited)
get not only meaningful cuts
End Trace Mode for Comment # 113.
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