Thursday, February 10, 2011
The scary actual U.S. government debt
“America’s fiscal gap is enormous – so massive that closing it appears impossible without immediate and radical reforms to its health care, tax and Social Security systems – as well as military and other discretionary spending cuts.”
Now why didn't I think of that? Gotta love the blogosphere. If you look long enough, you're bound to find someone who agrees with you. Hey, wait a minute! This is a well respected economist and professor at Boston University.
The article goes on to say, "Without drastic reform, Prof. Kotlikoff says, the only alternative would be a massive printing of money by the U.S. Treasury – and hyperinflation.
As former president Bill Clinton once prematurely said, the era of big government is over. In the coming years, the U.S. will almost certainly be compelled to deconstruct its welfare state."
Deconstruction, indeed, is better than destruction.
http://www.theglobeandmail.com/report-on-business/commentary/neil-reynolds/the-scary-actual-us-government-debt/article1773879/
Now why didn't I think of that? Gotta love the blogosphere. If you look long enough, you're bound to find someone who agrees with you. Hey, wait a minute! This is a well respected economist and professor at Boston University.
The article goes on to say, "Without drastic reform, Prof. Kotlikoff says, the only alternative would be a massive printing of money by the U.S. Treasury – and hyperinflation.
As former president Bill Clinton once prematurely said, the era of big government is over. In the coming years, the U.S. will almost certainly be compelled to deconstruct its welfare state."
Deconstruction, indeed, is better than destruction.
http://www.theglobeandmail.com/report-on-business/commentary/neil-reynolds/the-scary-actual-us-government-debt/article1773879/
What would the Romans do?
It isn't so much that the government is spending trillions upon trillions of dollars to prop up the economy, but rather to whom does the benefit accrue?
It certainly isn't the middle class, which is evaporating as food and energy prices continue to rise, while wages remain stagnant and unemployment remains high.
While the top 1% continue to sap the wealth of nations, the misery index could very well increase until a breaking point is reached. Where is that point? Who knows? Neither does anyone know what will happen when this hypothetical point is reached, only speculate.
Given the history of violence during times of civil unrest, and the protests in Europe, North Africa, and the Middle East, it isn't too hard to imagine. While the world waits to see which country will be the next to erupt in flames, no doubt contingency plans are being made.
This truly is a war of attrition, and of concern is whether the US will sacrifice it's own population in the interest of maintaining the balance of power and protecting entrenched interests, both public and private. Or whether sensible reforms will be undertaken to deal with out of control federal spending, and the mountain of unfunded entitlements our society faces. The only solution, as I see it, is to essentially balance the books through a bankruptcy process. Lay out the assets and liabilities, and settle the liabilities on a weighted percentage basis.
Since the average citizen accrues little in benefit from the federal government, settling the debt will be hardly noticeable other than having cast off the yoke of bondage. The entrenched interests, on the other hand, those on the receiving end of this vast transfer of wealth are the real challenge, and perhaps they would rather see the world burn than settle accounts, making the need for sensible reform even more vital to the health and well being of our nation and the world.
It certainly isn't the middle class, which is evaporating as food and energy prices continue to rise, while wages remain stagnant and unemployment remains high.
While the top 1% continue to sap the wealth of nations, the misery index could very well increase until a breaking point is reached. Where is that point? Who knows? Neither does anyone know what will happen when this hypothetical point is reached, only speculate.
Given the history of violence during times of civil unrest, and the protests in Europe, North Africa, and the Middle East, it isn't too hard to imagine. While the world waits to see which country will be the next to erupt in flames, no doubt contingency plans are being made.
This truly is a war of attrition, and of concern is whether the US will sacrifice it's own population in the interest of maintaining the balance of power and protecting entrenched interests, both public and private. Or whether sensible reforms will be undertaken to deal with out of control federal spending, and the mountain of unfunded entitlements our society faces. The only solution, as I see it, is to essentially balance the books through a bankruptcy process. Lay out the assets and liabilities, and settle the liabilities on a weighted percentage basis.
Since the average citizen accrues little in benefit from the federal government, settling the debt will be hardly noticeable other than having cast off the yoke of bondage. The entrenched interests, on the other hand, those on the receiving end of this vast transfer of wealth are the real challenge, and perhaps they would rather see the world burn than settle accounts, making the need for sensible reform even more vital to the health and well being of our nation and the world.
Wednesday, February 9, 2011
http://seekingalpha.com/article/251616-is-the-central-bank-causing-inflation?source=feed
US inflation is in the range of 5 - 8%, depending on your source, and China just increased their rates. Are you saying this was symbolic, and they're not serious? Or did you write this before the rate hike was announced?
I'm trying to figure out whether you're just a shill for Fed, and from the looks of your two latest posts, it appears that's exactly what you're doing.
You've stated in both posts the domestic inflation here in the US is statistically low. Are you out of your mind? Depending on your sources? I don't have an ivy league education, yet I have enough sense to know wages have been stagnant for two decades while inflation keeps inching upward and CEO pay has increased 300%.
I think you're missing the forest for the trees. We're at the end of a seventy year business cycle fueled by deficit spending, and fundamental reform must be enacted to reverse the rise of the oligarchy here in the US. Simply put, all inputs to production must share equally in the profits on a dollar for dollar basis, if we are to remain a free society. The alternative is a central run economy, which is what MMT is all about. Hasn't worked any where at any time in history, so I'm not sure why Bernanke is betting the bank on it. I guess he despises his middle class upbringing in South Carolina and thinks he knows better than anyone how to avoid a collapse of the dollar to the benefit of entrenched interests, both public and private, instead of promoting the general welfare, as our constitution states. When a government acts in it's own interests instead of those of it's citizens, it has lost legitimacy, and must resort to terror tactics to maintain control, such as those employed by DHS at the hands of the TSA.
Keep siding with the entrenched interests, Cullen. I'm sure there will be a place for you at Satan's table.
http://seekingalpha.com/article/251616-is-the-central-bank-causing-inflation?source=feed
I'm trying to figure out whether you're just a shill for Fed, and from the looks of your two latest posts, it appears that's exactly what you're doing.
You've stated in both posts the domestic inflation here in the US is statistically low. Are you out of your mind? Depending on your sources? I don't have an ivy league education, yet I have enough sense to know wages have been stagnant for two decades while inflation keeps inching upward and CEO pay has increased 300%.
I think you're missing the forest for the trees. We're at the end of a seventy year business cycle fueled by deficit spending, and fundamental reform must be enacted to reverse the rise of the oligarchy here in the US. Simply put, all inputs to production must share equally in the profits on a dollar for dollar basis, if we are to remain a free society. The alternative is a central run economy, which is what MMT is all about. Hasn't worked any where at any time in history, so I'm not sure why Bernanke is betting the bank on it. I guess he despises his middle class upbringing in South Carolina and thinks he knows better than anyone how to avoid a collapse of the dollar to the benefit of entrenched interests, both public and private, instead of promoting the general welfare, as our constitution states. When a government acts in it's own interests instead of those of it's citizens, it has lost legitimacy, and must resort to terror tactics to maintain control, such as those employed by DHS at the hands of the TSA.
Keep siding with the entrenched interests, Cullen. I'm sure there will be a place for you at Satan's table.
http://seekingalpha.com/article/251616-is-the-central-bank-causing-inflation?source=feed
The Fed Is Not Monetizing U.S. Government Debt
Indeed, increases in money supply are "scary", especially if it's to support public sector growth in the form of deficit spending.
MMT is a theory precisely because it hasn't been proven. I will continue to rely on Keynes and point out that his theories are discounted only because governments have never contracted spending during boom times. The effect has been to crowd out the private sector, and we are where we are today. Without a public sector contraction, this is all we will have left.
http://seekingalpha.com/article/251625-the-fed-is-not-monetizing-u-s-government-debt?source=feed
MMT is a theory precisely because it hasn't been proven. I will continue to rely on Keynes and point out that his theories are discounted only because governments have never contracted spending during boom times. The effect has been to crowd out the private sector, and we are where we are today. Without a public sector contraction, this is all we will have left.
http://seekingalpha.com/article/251625-the-fed-is-not-monetizing-u-s-government-debt?source=feed
Thursday, February 3, 2011
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
70 years of federal deficit spending caused this crisis and every administration has sunk us deeper in the hole. Carter was the last president to take on the federal bureaucracy, since then, it's been give me what I want, I'll give you what you want, which has lead to an exponentially increasing deficit, and yes, Nobama is worse than Bushie.
Riots on the streets of Cairo isn't going to be the end of global turmoil. Pakistan is likely to be the next. It's hard to fathom the amount of aid it's going to take to prevent starvation on a epic scale. North Carolinians can do their part by tightening the austerity belt, because it's going to get ugly. We can wind down all but essential services gracefully, are all at once in a crash, but either way we're headed for a long term decrease in our standard of living causes by 300% increases in CEO pay over the last 10 years, while worker wages have remained the same. Now inflation in the US is bumping along at 5 - 8% per year, while the price of rice will double over of the next year.
The long term solution to increase revenues is to cut spending and cut taxes, which will allow the economy to recover. Yet, we also have to address a host of other issues, which are simply being ignored. This solution is getting longer term with every increase in deficit spending by our federal government, wherein lays the problem. If we can't reign in federal deficit spending, which may not be possible after 2008, we're going down one of two paths, individual freedom or an authoritarian world government. It's up to you and I, and it starts with cutting spending and taxes at home.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
Riots on the streets of Cairo isn't going to be the end of global turmoil. Pakistan is likely to be the next. It's hard to fathom the amount of aid it's going to take to prevent starvation on a epic scale. North Carolinians can do their part by tightening the austerity belt, because it's going to get ugly. We can wind down all but essential services gracefully, are all at once in a crash, but either way we're headed for a long term decrease in our standard of living causes by 300% increases in CEO pay over the last 10 years, while worker wages have remained the same. Now inflation in the US is bumping along at 5 - 8% per year, while the price of rice will double over of the next year.
The long term solution to increase revenues is to cut spending and cut taxes, which will allow the economy to recover. Yet, we also have to address a host of other issues, which are simply being ignored. This solution is getting longer term with every increase in deficit spending by our federal government, wherein lays the problem. If we can't reign in federal deficit spending, which may not be possible after 2008, we're going down one of two paths, individual freedom or an authoritarian world government. It's up to you and I, and it starts with cutting spending and taxes at home.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
Here's some more reality for you, NotLiberal, the SHP was overly generous for too long, and it's a significant liability to this State. When you have people that only worked for the State for 5 years receiving full health benefits at 65, you've got a problem. This isn't a blame game, it's the fact of the matter that the citizens of this State shouldn't be unduly burdened with the cost of government. You can whine all you like, but to expect everyone else to pay for government's mistakes is more than unrealistic, it's a cancer of unfunded entitlements that will have to arrested over the next 20 years if we're going to survive as a society.
Specifically regarding the SHP, if it were possible to increase copays for State retirees with less than 20 years of service would be the equitable means of reducing costs. At any rate, increased copays and premiums, and reducing benefits are inevitable. I hate that it punishes those with over 20 years of service, as well, but we're on a collision course with the end of a seventy year business cycle characterized by federal deficit spending. The spending is going away, but the debt burden isn't, meaning we're going to pay more and more in taxes while receiving less and less in services. It's inevitable and you may as well get used it.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
Specifically regarding the SHP, if it were possible to increase copays for State retirees with less than 20 years of service would be the equitable means of reducing costs. At any rate, increased copays and premiums, and reducing benefits are inevitable. I hate that it punishes those with over 20 years of service, as well, but we're on a collision course with the end of a seventy year business cycle characterized by federal deficit spending. The spending is going away, but the debt burden isn't, meaning we're going to pay more and more in taxes while receiving less and less in services. It's inevitable and you may as well get used it.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
Wednesday, February 2, 2011
Perdue slices budget; GOP says go deeper
NotLiberal, please don't pretend public sector employment hasn't been pretty much recession proof since the end of the WWII. Face the reality that our economy is not improving, and this time around public employees aren't immune. The root of the problem is out of control federal spending, which has effectively crowded out the private sector.
The best thing our State can do to prepare in this new reality is to wind down all but essential services. At best, we're looking at a long term reduction in state revenue.
We're in a period of high unemployment and rising costs, while wages remain flat. The last time this occurred was during the Nixon/Ford/Carter administrations. The solution then was to begin spending more and more beginning with Reagan. Now we're in the same fix, and we can't spend our way out of it.
The long term solution is to cut spending and lower taxes. The longer it takes for our governments at the federal and state levels to get it, the longer it will take for our economy to recover, and the longer it will take for revenues to improve. Our state and federal governments are in the denial stage at the moment, and with Nobama and helicopter Ben at the helm, we may not avoid the shoals.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
The best thing our State can do to prepare in this new reality is to wind down all but essential services. At best, we're looking at a long term reduction in state revenue.
We're in a period of high unemployment and rising costs, while wages remain flat. The last time this occurred was during the Nixon/Ford/Carter administrations. The solution then was to begin spending more and more beginning with Reagan. Now we're in the same fix, and we can't spend our way out of it.
The long term solution is to cut spending and lower taxes. The longer it takes for our governments at the federal and state levels to get it, the longer it will take for our economy to recover, and the longer it will take for revenues to improve. Our state and federal governments are in the denial stage at the moment, and with Nobama and helicopter Ben at the helm, we may not avoid the shoals.
Perdue slices budget; GOP says go deeper - State - NewsObserver.com
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