We're Already Bankrupt.

[JAMESBJOHNSON]

http://noir.bloomberg.com/apps/news?pid=20601010&sid=aiFjnanrDWVk
BE AFRAID, BE VERY AFRAID.

 

[trysail]

http://noir.bloomberg.com/apps/news?pid=20601010&sid=aiFjnanrDWVk
BE AFRAID, BE VERY AFRAID.

If the old adage, "If you don't have anything nice to say, it's better not to say anything at all" is true, Americans are going to discover they are speechless.


Enabled by voters who believe in Santa Claus and perpetual motion, the politicians have bankrupted us all.


The professor's calculation of the government's liabilities as $202,000,000,000,000 ( that's TWO HUNDRED TWO TRILLION DOLLARS ) is more than double my estimate ( http://forum.literotica.com/showpost.php?p=24535854&postcount=1 ) based on adding up the nominal government debt and the unfunded liabilities of Social Security and Medicare. I don't know the specifics of his calculation. God only knows what the health care legislation is going to cost.



TANSTAAFL

...Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late.

And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.

Worse Than Greece
Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

Some doctrinaire Keynesian economists would say any stimulus over the next few years won’t affect our ability to deal with deficits in the long run.

This is wrong as a simple matter of arithmetic. The fiscal gap is the government’s credit-card bill and each year’s 14 percent of GDP is the interest on that bill. If it doesn’t pay this year’s interest, it will be added to the balance.

Demand-siders say forgoing this year’s 14 percent fiscal tightening, and spending even more, will pay for itself, in present value, by expanding the economy and tax revenue.

My reaction? Get real, or go hang out with equally deluded supply-siders. Our country is broke and can no longer afford no- pain, all-gain “solutions.”

 

[TE999]

Another 'robbing Peter to pay Paul' scam by the current rulers is indicative of the more serious problem of the feds outgo exceeding their income...and pissing off one component of their base to reward another.

http://www.foxnews.com/politics/201...cy-groups-blast-cuts-food-stamps-fund-m-jobs/

Under which shell is the pea today?

 

[sr71plt]

We weren't almost bankrupt when the Democrat's gave up the White House the last--we were flush. And we were already almost bankrupt before the Democrats got back into the White House again. Think about it. (Especially all of you who don't want to pay taxes but want to rattle your guns and occupy countries overseas.)

 

[JAMESBJOHNSON]

Hold that thought, it'll be a comfort to you when youre eating cats and rats and sleeping beneath a bridge on Obama's watch.

 

[JAMESBJOHNSON]

Another 'robbing Peter to pay Paul' scam by the current rulers is indicative of the more serious problem of the feds outgo exceeding their income...and pissing off one component of their base to reward another.

http://www.foxnews.com/politics/201...cy-groups-blast-cuts-food-stamps-fund-m-jobs/

Under which shell is the pea today?

Someone is cleaning out checking accounts with sophisticated, undetectable software. I thought, GOTTA BE A KID CANT BE THE GOVERNMENT.

 

[sr71plt]

Hold that thought, it'll be a comfort to you when youre eating cats and rats and sleeping beneath a bridge on Obama's watch.

Sounds good to me. I've got liquid assets that would see me into my 120s. That would make Obama president for a good long time. (By then he should have the necessary experience to be on top of the job rather than sometimes under the bus.)

And I love it when you predict like this, JBJ. You (and Ami) were so totally off the mark in your prognostications of the last presidential campaign and elections that it gives me great pleasure to see your predictions and to know how well those are going to work out.

 

[JAMESBJOHNSON]

I guess we'll find out pretty soon whazzup. It could be just you and Obama up there in DC.

 

[Carnevil9]

When you rob Peter to pay Paul, you know you can count on Paul's vote. That's why you need to rob a few big Peters and pay a lot of little Pauls.

 

[JAMESBJOHNSON]

When you rob Peter to pay Paul, you know you can count on Paul's vote. That's why you need to rob a few big Peters and pay a lot of little Pauls.

Obama is poised to get a very big Peter in a few weeks.

 

[sr71plt]

I guess we'll find out pretty soon whazzup. It could be just you and Obama up there in DC.

I'm not in D.C. a whole lot. And again, I appreciate your prediction, as it assures me the world is doing as best as can be expected in the face of those who complain impotently about politics on a porn board with no intention of getting up from their Laz-Y-Boys and doing anything constructive.

 

[trysail]

George Washington's Farewell Address
Published 17 September, 1796

Excerpts from Wikipedia, http://en.wikipedia.org/wiki/George_Washington's_Farewell_Address



The Dangers of Political Parties

Washington continues to advance his idea of the dangers of sectionalism and expands his warning to include the dangers of political parties to the government and country as a whole. His warnings took on added significance with the recent creation of the Democratic-Republican Party by Jefferson, to oppose Hamilton's Federalist Party, which had been created a year earlier in 1791, which in many ways promoted the interest of certain regions and groups of Americans over others. A more pressing concern for Washington, which he makes reference to in this portion of the address, was the Democratic-Republican efforts to align with France and the Federalist efforts to ally the nation with Great Britain in an ongoing conflict between the two European nations brought about by the French Revolution.

While Washington accepts the fact that it is natural for people to organize and operate within groups like political parties, he also argues that every government has recognized political parties as an enemy and has sought to repress them because of their tendency to seek more power than other groups and take revenge on political opponents. He argues that these parties' efforts to seize power and exact revenge upon their opponents have led to horrible atrocities and will ultimately end in despotism as people throw their support behind the most powerful faction and the faction focuses on increasing their own power instead of promoting the public liberty.

Washington goes on to acknowledge the fact that parties are sometimes beneficial in promoting liberty in monarchies, but argues that political parties must be restrained in a popularly elected government because of their tendency to distract the government from their duties, create unfounded jealousies amongst groups and regions, raise false alarms amongst the people, promote riots and insurrection, and provide foreign nations and interests access to the government where they can impose their will upon the country.

The Importance of Credit, and the Sparing Use of Government Borrowing

Washington provides strong support for a balanced federal budget, arguing that the nation's credit is an important source of strength and security. He urges the American people to preserve the national credit by avoiding war, avoiding unnecessary borrowing, and paying off any national debt accumulated in times of war as quickly as possible in times of peace so that future generations do not have to take on the financial burdens that others have taken on themselves. Despite his warnings to avoid taking on debt, Washington does state his belief that sometimes it is necessary to spend money to prevent dangers or wars that will in the end cost more if not properly prepared for. At these times, argues Washington, it is necessary, although unpleasant, for the people to cooperate by paying taxes created to cover these precautionary expenses.

Washington makes an extended allusion, possibly in reference to the Whiskey Rebellion in Pennsylvania which he led a national army to put down, on how important it is for the government to be careful in choosing the items that will be taxed, but he also reminds the American people that no matter how hard the government tries there will never be a tax which is not inconvenient, unpleasant, or seemingly an insult to those who must pay it.

Foreign Relations, the Dangers of Permanent Foreign Alliances, and Free Trade

Washington dedicates a large part of his farewell address to discussing foreign relations, and the dangers of permanent alliances between the United States and foreign nations. This issue had taken special prominence in American politics during conflict between France and Britain, known as the French Revolutionary Wars, and the efforts of the Federalists to join sides with Britain and the efforts of the Democratic-Republicans to convince Washington to honor the 1778 Treaty of Alliance, which established the Franco-American alliance, and aid France. Washington had avoided American involvement in the conflict by issuing the Proclamation of Neutrality, which in turn led to the Neutrality Act of 1794. He clearly tries to further explain his approach to foreign policy and alliances in this portion of the address.

Once again making reference to proper behavior based upon religious doctrine and morality, Washington advocates a policy of good faith and justice towards all nations, and urges the American people to avoid long-term friendly relations or rivalries with any nation. He argues these attachments and animosity toward nations will only cloud the government's judgment in its foreign policy. Washington argues that longstanding poor relations will only lead to unnecessary wars due to a tendency to blow minor offenses out of proportion when committed by nations viewed as enemies of the United States. He continues this argument by claiming that alliances are likely to draw the United States into wars which have no justification and no benefit to the country beyond simply defending the favored nation. Washington continues his warning on alliances by claiming that they often lead to poor relations with nations who feel that they are not being treated as well as America's allies, and threaten to influence the American government into making decisions based upon the will of their allies instead of the will of the American people.

Washington makes an extended reference to the dangers of foreign nations who will seek to influence the American people and government. He makes a point to say that he believes both nations who may be considered friendly as well as nations considered enemies will try to influence the government to do their will and it will only be "real patriots" who ignore popular opinion and resist the influence of friendly nations to seek what is best for their own country. It is likely that Washington's own experience during the Citizen Genêt affair, when a French diplomat traveled to America raising militias to attack Spanish lands, privateers to seize British ships, and rallies to sway American opinion in favor of an alliance with France against Washington's orders to stop his activities in the interest of American neutrality.

Washington goes on to urge the American people to take advantage of their isolated position in the world, and avoid attachments and entanglements in foreign affairs, especially those of Europe, which he argues have little or nothing to do with the interests of America. He argues that it makes no sense for the American people to wage war on European soil when their isolated position and unity will allow them to remain neutral and focus on their own affairs. As a result, Washington argues that the country should avoid permanent alliance with all foreign nations, although temporary alliances during times of extreme danger may be necessary, but does say that current treaties should be honored although not extended. (Despite his claim that current alliances should be honored, Washington had in fact through the Proclamation of Neutrality not honored the Treaty of Alliance, which promised aid in case the French were ever attacked by the British.)

Washington wraps up his foreign policy stance by advocating free trade with all nations arguing that trade links should be established naturally and the role of the government should be limited to insuring stable trade, defending the rights of American merchants, and any provisions necessary to insure that the government is able to insure the conventional rules of trade.

 

[JAMESBJOHNSON]

I'm not in D.C. a whole lot. And again, I appreciate your prediction, as it assures me the world is doing as best as can be expected in the face of those who complain impotently about politics on a porn board with no intention of getting up from their Laz-Y-Boys and doing anything constructive.

I made a WELCOME TO THE RECOVERY garden. Its a lot of work.

 

[sr71plt]

I made a WELCOME TO THE RECOVERY garden. Its a lot of work.

I actually help the bigger picture of the economy by buying from local producers. (And use the time you work on your garden in the economic system generating more money to fold back into the greater economic system). Guess I just think/act on a larger, more complex scale than you do. Not a surprise, really.

 

[JAMESBJOHNSON]

I actually help the bigger picture of the economy by buying from local producers. (And use the time you work on your garden in the economic system generating more money to fold back into the greater economic system). Guess I just think/act on a larger, more complex scale than you do. Not a surprise, really.

You just dont wanna get dirty.

 

[sr71plt]

You just dont wanna get dirty.

Naw, I just have a more sophisticated understanding of how economies work and thrive, it seems.

 

[Loring2]

Bull...

Naw, I just have a more sophisticated understanding of how economies work and thrive, it seems.

You're kidding youself ... it's hard to find anybody who understands less about economoics than you.

 

[sr71plt]

You're kidding youself ... it's hard to find anybody who understands less about economoics than you.

Please cite posts that led you to that empty jab.

(You certainly lick your wounds for a long time, don't you.)

 

[sr71plt]

Whatsa matter, Loring2? Still researching through the forum to substantiate your empty charge?

Doesn't bother you to lie to back bite at all, does it?

Don't look too hard. You won't find much. I don't discuss economics here much at all. I don't have many erotica story plots that need it.

 

[JAMESBJOHNSON]

SR71PLT

Its obvious to me you dont follow the financial news or grasp basic economic principles.

 

[sr71plt]

SR71PLT

Its obvious to me you dont follow the financial news or grasp basic economic principles.

Well, gee, "ya gotta spend in the economy to stimulate the economy" is hardly flash news, sport. It was even at the base of Bush economics.

You're just being dopey and scrabbling at the cliff face on your way down.

And, I love things that then don't happen being obvious to you--as bad as your prognostication track record is.

 

[xssve]

The GOP bankrupted the country to prop up the almighty petrodollar on which their fortunes are based, politics are all that's left for them" blame it on somebody else.

Your professor is just shilling for that old chestnut, the regressive flat tax, you people never quit do you?

 

[xssve]

And, to back it up, I could point to literally thousands of articles written by conservatives dating back to the Reagan debt, arguing that debt is "meaningless", the big complaint about Clinton was that he "raised taxes" - to pay off the debt.

In fact, it was that bipartisan effort, buying back long term bonds, that helped fuel the economic boom of the Nineties, where incomes surged instead of declining for the first time in Twenty years, well in excess of any taxation losses.

i.e., Republican debt abuse has never been demonstrated to "make the pie higher", because they hate spending on infrastructure - taxation is a Red herring, the pubs spent plenty of money, they just borrowed it from your children and grandchildren instead of reaching into their own pockets, but they didn't spend it on anything that provides any long term economic benefit, but to prop up the petrodollar, which is reaching the end of it's lifespan one way or another anyway - it only benefits those who are already invested in petrodollars and need capital to reposition themselves in the post petrodollar world, the event horizon of which they are, in the meantime, attempting to delay as long as possible.

In this economic chess game, everybody else is just collateral damage - Clinton-Gore, by contrast, especially Gore, were simply going straight for the post-petrodollar, value added economy, where margins are tighter.

On the course the pubs set, if Iran does start it's own oil bourse, and the word stops trading oil in American currency, the debt isn't going to matter because the dollar isn't going to be worth anything, because we haven't done anything to diversify the base of our currency - instant double digit inflation, which is only really worrisome if your happen to be holding a lot of cash, or trade heavily in liquid assets - a house is still a house, it still keeps the rain off your head, a car will still get you from point A to point B, i.e., intrinsic value is unaffected.

Fucking Carter tried to do it too, but the republican party is a wholly owned and operated subsidiary of the oil industry and the bond traders who feed off the petrodollar monopoly, and all of their eggs are in one, increasingly shaky, basket.

Think about how much money they spend on marketing, as opposed to democrats, it's like Three to one, in terms of what is disclosed, throw in the "think tanks", talk radio and Fox news, and private PR firms and I'd be surprised if it wasn't Five or Ten to one.

So all it means, marketing wise, from a partisan right wing viewpoint, is that dems are damned if they reduce the debt, damned if they increase it, while pubs can apparently, do no wrong - go figure.

Hint: the dems ain't "the elite".

 

[xssve]

So think about this: should the petrodollar collapse, from the standpoint of capital, the choice is simple: do the humane thing, take the hit in the wallet and make sure people still get enough to eat, or allow everything to slip into chaos, and take advantage of the confusion to re-establish America as a feudal, Banana republic - which alternative do you think republicans prefer?

Hint, it ain't the dem's buying guns.

 

[JAMESBJOHNSON]

Obama just cut money for Food Stamps to pay teachers.