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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: 81905
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 # 46.
#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.
And they aren't working because US manufacturing has been sabotaged (a bi-partisan effort via China MFN status and NAFTA) and because 0bama is purposely undermining US domestic oil/coal production and exploration, farming, and small business through over-regulation and its anti-capitalist/leftist agenda. Perspective 2: Government spending accounts for $3trl of our GDP. MUST be reduced by 25% across the board. 0bama instead JACKS it up across the board. 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're kidding, right? THIS country's economy can ONLY be improved by helping the American private sector compete and excel against the foreign slave labor markets of China and other Third World nations and their itter lack of regs. Spending $800 billion dollar stim programs for unions and fedgove drones or training for jobs that do NOT exist any longer won't help us. 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. Listen - the Dems have owned Congress since 2007...which just coincidentally happens to be the start of the American economy PLUNGING off a cliff. Boehner and Cantnor can't make good on jack-squat when ANY productive ideas on the table are deep sixed by the Dem Senate AND/OR vetoed and ridiculed by the tone-deaf Commie-in-Charge. 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. HUH?? LOL! You're delusional. Utterly and completely! 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... Ooooooh...an entire SEVEN MONTHS!! R-i-g-h-t!! It's the GOP House's fault!! NOT the Dem Congress and President!! DOINK! How will reducing spending in a down economy BOOST economic growth? WE. DON'T. POSSESS. REVENUE. TO. SPEND (not counting Monopoly money.) Again - investment in business and industry IN AMERICA is the ONLY way to boost a dead economy - NOT phony "Stim programs." How will cutting spending on infrastructure, which has a direct correlation to stimulating demand, BOOST economic growth? Hey, here's an idea - how about the Four-War-Prez and Nobel Peace Prize winner proposing re-allocating war money TO spending it on the infrastructure?? 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? You may call it "education funding," but the reality is the NEA and University socialist propaganda doesn't really help in the Real World of jobs and capitalist innovation. If "education" was an issue in helping create wealth, Americans should be cranking out inventions, industries and an economy that reflect it; Instead we possess many of the dopiest people on the planet. 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. War, your questions created MORE questions to be answered - by YOU.
#48. To: Liberator (#46)
You're too frickin' funny Libby... Your highlights... The 2007 recession, conicident to the dems resurgence is their fault but the 2011 Double Dip, coincident to the GOP/Tea resurgence Party is the...uh...Dems fault? You state this in full knowledge that the housing meltdown started in 2006, was abated somewhat by the HTC in the stim bill but because the GOP would not agree to open ended tax breaks, resumed its downward plunge not too long thereafter. Ditto car sales... As was pointed out, government spending is ~20% of GDP you want to cut 25% of that 20% and you ***think*** that will increase GDP. Can you tell me how you get a higher number by subtracting two positives? The stim should have had more demand side tax cuts and credits...typified by the housing tax credit and cash for clunkers. As it was, that was $300bln of the $800bln. The $500Bln left that you ***think*** was given to unions, was, in fact, mostly spent on infrastructure. And you need to kock of the talking points. EVERY statement that you ***think*** was a rebuttal was simply you regurgitating...talk radio...demonize the NEA...demonize colleges...
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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.
#46. To: war, Get Outta Dodge! (#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.
Replies to Comment # 46.
End Trace Mode for Comment # 46.
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