This fiscal year, the deficit will rise to about 13 percent of G.D.P., more than twice the non-wartime record. In dollars, that equates to a staggering $1.8 trillion. Fiscally, we are in uncharted territory.
Assume, in a relatively benign scenario, that all of this is directed by the recipients — China leads the list — to purchases of United States debt. Never mind that this all-Treasuries allocation is no sure thing: some countries may decide that purchasing American stocks, real estate or entire companies makes more sense than soaking up dollar-denominated bonds.
He also gets right on when he says gov’t uses inflation to tax people:
Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes.
What do you guys think about government intervention on the economy and Obama/Bush policies on it?
Dreading the day all these morons with their (legal) assault weapons strapped to their thighs starting blasting away to assert their individual “rights”.
Someone mentioned the Pilgrims. Would someone else please correct this American fairy tale propagated by elementary schools throughout the land. I’m running late.
#5 for the blow-out win …
“While the drooling masses are worrying over whether or not Paula Headcase is going to be back on American Idol …”
“You stupid fuckers have been bitching about the crab grass in the front yard while roof of the house has caved in …”
^^
|
This guy has written some of the most terrific real-life comedy material seen on this blog.
@RTaylor
It was Alfred so it would be a waste of time and energy.
@RTaylor and Improbus…it was done before, but he lives his fantasy regardless any messy reality. He’s Dvorak’s dining room table.
Shift Happens
We live in dire times, but God forbid it is the end of times. We will survive as much of your predecessors in the past millennium. Have faith in God or whatever your idol is currently (could be the dollar… arg).
“how is the US going to pay for the debt”
It can’t possibly and it WON’T. The only reason our creditors still lend to us at all is that there is no other monetary haven that is more secure (_for now_) and if they stopped lending to us our collapse would take them down, too, and the trillions of dollars they currently hold would become worth far less.
However, considering the scam that this current crisis revealed to even the most ignorant (the US will give you pieces of paper for your manufactured items and oh, by the way, loan us the money to buy your manufactured items), the rest of the world will be looking real hard for some way to get off their dollar habit.
“If we toss the bums out in 2010, and they stop the spending, and then Obama and the rest of his crew out in 2012…I see America regaining her wealth…via free market capitalism.”
ROTFL! You obviously don’t get it. BOTH major parties in the US are bought and paid for by the same special interests who got us into this mess. The dems and reps always try, very successfully, to differentiate themselves by dangling a few hot button issues in front of the sheep like gay marriage, guns, abortion, etc. On issues of truly great national importance, they sing the same corporate/banker tune.
I don’t think the Democrat’s or the Republican’s have done America any favors. The unrest in these town hall meetings tell a simple picture. People do not trust government. Its not about the health plan, its about the government being involved with it. Is their a government program or any government supported agency that is fiscally responsible? Just look at the Post Office. If I had to make some alternative suggestions other then a health care overhaul. I would say let’s set limits on malpractice suits. Let’s create competitiveness with private health care providers. Open up these providers to allow them to sell insurance in other states. Make them be more competitive. Stop treating people with minor ailments in emergency rooms. I for one cannot understand what the government is trying to get passed because their is still too much bad information coming from all sources even the media and government.
They all sound like car salesmen.
I’d rather have Tax and Spend Democrats than Borrow and Spend Republicans. Time to live within our means. But this quote from the article is disturbing:
Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes. In fact, John Maynard Keynes long ago laid out a road map for political survival amid an economic disaster of just this sort: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens…. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
If we vote out our politicians for raising our taxes or cutting our benefits, when such things need to happen, we’ve shown ourselves to be undisciplined children and we don’t deserve to have a representative government.
Representative government is what we have: not democracy.
How come I never heard conservatives ask this question when they where cheer leading a 3 trillion dollar needless war, finances strictly off-budget.
You didn’t listen (a little harsh).
Hey, I wrote Ron Paul on my ballot. I seriously think that we are continuing in a big mess. There was no change as Obama promised.
On another note, my wife and I have been watching Cheers on DVD, and we are up to the final season. Last night we saw the episode when Woody was elected to public office on a bar bet. Woody was nervous about his upcoming debate and Frasier coached him saying, “Oh, if you want to win the election just keep saying the word ‘change.'”
Hummm….
Yes, Alfred1, I have no doubt that the world you live in is bizarre. 🙂
#55 We’re going to hear major crickets on that one Greg… unless one of them is foolish enough to resurrect some of that BushCo Babble. 🙂
Alfred1,
how is it that you have time to post to this blog all day?
You say you work for a living? I have to question that because I can’t think of any job that a wack-job like you could do in any satisfactory way.
You have a very big problem, it’s a cancerous, hollow tumor growing right between your ears.
phydeau # 59 – right on the money lol.
Finding 1.8 trillion.. Just make the people who stole it over the last eight years give it back.
I reckon the post is decorous and on the point. This brief in point of fact helped me in my assignment.