Why we will not have a Greece-like crisis

[delldude]

You telling me you didn't notice how well our economy went after 911?

 

[delldude]

Let me clarify for you...........Al Qeida and any other organization on the planet saw how well our economy responded on and after 911 and don't bet for an instant it hasn't been noted.

We keep our debt up like it is and a devastating crisis will do us in.

 

[Glenn Quagmire]

Rising revenues to shrink U.S. deficit rapidly through 2015 - CBO


http://news.yahoo.com/rising-revenues-shrink-u-deficit-073800445.html

"WASHINGTON (Reuters) - The U.S. deficit is shrinking considerably more quickly than previously thought, the Congressional Budget Office said on Tuesday in a report that could sap Congress' sense of urgency to find further budget savings.
In one fell swoop, the non-partisan budget referee slashed its deficit forecast for the current fiscal year by $203 billion from estimates made in February to $642 billion - making it the smallest budget shortfall since 2008.
The CBO said the deficit will fall to $378 billion by 2015 with no congressional action - a sharp contrast to the $1 trillion recession-driven deficits in each of President Barack Obama's first four years in office.
The revisions are driven largely by rising tax revenue from individuals and corporations as the economy sputters back to life. They also reflect stronger contributions to U.S. Treasury coffers from government-run mortgage finance groups Fannie Mae and Freddie Mac .
"Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO's baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015," the CBO said in its report."

 

[SparrowHawk]

The key word is "Reduce" as in not eliminate the deficit.

If you want to look at what massive debt does to an economy check out Japa. A high flyer in the ;70's and 80's they got in trouble and began printing money as we are doing with the QE's 1 through 100. Japan has NEVER totally recovered. In many cases the average Japanese citizen saw their life saving dwindle in value as commodities inflated leaving the middle class poorer.

 

[delldude]

10 Scenes From The Ongoing Global Economic Collapse

Submitted by Tyler Durden on 05/14/2013 - 21:54

When is the economic collapse going to happen? Just open up your eyes and take a look around the globe. The next wave of the economic collapse may not have reached Wall Street yet, but it is already deeply affecting billions of lives all over the planet. Much of Europe has already descended into a deep economic depression, very disturbing economic data is coming out of the second and third largest economies on the globe (China and Japan), and in most of the world economic inequality is growing even though 80 percent of the global population already lives on less than $10 a day. Just because the Dow has been setting brand new all-time records lately does not mean that everything is okay. Remember, a bubble is always the biggest right before it bursts. The next major wave of the economic collapse is already sweeping across Europe and Asia and it is going to devastate the United States as well.

 

[Glenn Quagmire]

Sparrow: go back and read the original article in the thread.

Dell: What the CBO is talking about in their report has nothing to do with the stock market rise and swings. They are talking about rising revenues from corporations and FANNIE/FREDDIE. If you want that to go away, just give corporations some more welfare in the form of tax loopholes. If the loopholes were closed, those revenues would rise even more sharply, lowering the debt to GDP.

""Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO's baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015," the CBO said in its report.""

 

[SparrowHawk]

Sparrow: go back and read the original article in the thread.

Dell: What the CBO is talking about in their report has nothing to do with the stock market rise and swings. They are talking about rising revenues from corporations and FANNIE/FREDDIE. If you want that to go away, just give corporations some more welfare in the form of tax loopholes. If the loopholes were closed, those revenues would rise even more sharply, lowering the debt to GDP.

""Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO's baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015," the CBO said in its report.""

Not the least bit interested in what the CBO says. A CBO report is like the Fox telling someone they're no dead chickens with feathers in his mouth.

Printing money out of thin air is the biggest corporate welfare scheme out there. It's the primary cause of wealth concentration, commodity inflation and why the dollar has lost 93% of its value since the inception of the Fed. Even Bernanke admits that the Federal Reserve caused the great Depression.

The more money we print out of thin air the more we devalue our currency and the more expensive things like Gas & Groceries become for the middle class.

You paying more or less for gas than 15 years ago?

 

[delldude]

Sparrow: go back and read the original article in the thread.

Dell: What the CBO is talking about in their report has nothing to do with the stock market rise and swings. They are talking about rising revenues from corporations and FANNIE/FREDDIE. If you want that to go away, just give corporations some more welfare in the form of tax loopholes. If the loopholes were closed, those revenues would rise even more sharply, lowering the debt to GDP.

""Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO's baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015," the CBO said in its report.""

Revenues in a global economic crash will be at best 'the good old days'.

And the stock market has everything to do with it...rising revenues from corporations and Fan/Fred are directly related to what goes on in the stock market.....Duh

 

[delldude]

• George W. Bush, pushed in part by a Congress controlled by Democrats, allowed federal spending to increase $700 per person over Clinton-era levels.
• Even if we completely ignore the first two years of the Obama administration (remember the recession officially ended in June 2009), average spending has risen more than $2,100 per person above the levels of Bush’s last two years.
• Yet, despite having achieved the highest levels of federal spending in history (in spite of a massive reduction in our military commitments/spending in Iraq/Afghanistan), President Obama plans, by 2017, to increase spending by another $1,500 per person.
• In short, by the time Obama has completed his first six years in office, he will have increased inflation-adjusted federal spending by five times as much as President Bush increased spending relative to President Clinton. (Just imagine how much worse things might be had Democrats retained full control over Congress after 2010.)

 

[signals]

Well obviously we continue to use Baghdad Bob' s propaganda!

 

[Glenn Quagmire]

"While there are many signs that the American economy is picking up steam, in much of the European Union, the opposite is true. Austerity programs aimed at reducing national debts have been blamed for crushing growth and sending unemployment in the eurozone nations to a record high of 12 percent.

This week, the EU announced it is easing up on austerity, giving some countries - including Spain and France - more time to hit their deficit reduction targets."

"Faced with the debacle in Greece and fear that it could spread across Europe, eurozone policymakers decided three years ago to pressure Greece and other countries with big debt loads, to cut their budgets and raise taxes to get their debt under control.

Policymakers claimed the government austerity would give the private sector more confidence to invest and hire, so the economic drag from the budget cuts wouldn't be so bad. They were wrong, says Jacob Kirkegaard of the Peterson Institute for International Economics."

http://www.npr.org/2013/05/31/187459762/e-u-eases-some-austerity-measures

http://pd.npr.org/anon.npr-mp3/npr/me/2013/05/20130531_me_01.mp3

 

[delldude]

Just remember, we own all kinds EU debt.

 

[SparrowHawk]

"While there are many signs that the American economy is picking up steam, in much of the European Union, the opposite is true. Austerity programs aimed at reducing national debts have been blamed for crushing growth and sending unemployment in the eurozone nations to a record high of 12 percent.

This week, the EU announced it is easing up on austerity, giving some countries - including Spain and France - more time to hit their deficit reduction targets."

"Faced with the debacle in Greece and fear that it could spread across Europe, eurozone policymakers decided three years ago to pressure Greece and other countries with big debt loads, to cut their budgets and raise taxes to get their debt under control.

Policymakers claimed the government austerity would give the private sector more confidence to invest and hire, so the economic drag from the budget cuts wouldn't be so bad. They were wrong, says Jacob Kirkegaard of the Peterson Institute for International Economics."

http://www.npr.org/2...terity-measures

http://pd.npr.org/anon.npr-mp3/npr/me/2013/05/20130531_me_01.mp3

Well when you inflate away debt using fiat currency you can stay afloat for quite some time. The negative is you as a nation and central bank screw the working class like a Dutch Whore. USD has lost 93% of it's value since the inception of the Federal Reserve.

If US currency was worth what it was in 1964 the Federal Minimum Wage would be around $26.25/Hr.

 

[Glenn Quagmire]

Your philosophy is being proven wrong as this economy improves. The fed monetary policy over the last several years is credited with keeping us from slipping into depression.

Austerity is bad policy and that is being proven wrong in the EU now.

"In Britain as in much of Europe, the debate about austerity rages on. Last week, the IMF actually urged the British government to delay its plans to cut spending and raise taxes, and instead to borrow and spend money on infrastructure. I think the data now is increasingly convincing that the Keynesians have been right: cutting spending in the kind of recession we have gone through will only hurt growth not help it.
Since I have been long advocating large investments in areas like infrastructure, job-training, and science, I’m delighted.
And yet, it's too soon to celebrate. Because spending on its own is not enough either. In order to ensure sustained growth in the long run, countries also need to engage in what economists call structural reforms – lowering tariffs, opening up protected industries, making it easier for new businesses to start-up, streamlining regulations."

I agree with what Fareed Zakaria said above and in this clip:

http://globalpublicsquare.blogs.cnn.com/2013/05/28/time-for-structural-reforms/

"Reform isn't a Dirty Word":

http://articles.washingtonpost.com/2013-05-22/opinions/39443630_1_tax-code-comprehensive-tax-reform-corporate-tax-rate

 

[delldude]

Your philosophy is being proven wrong as this economy improves. The fed monetary policy over the last several years is credited with keeping us from slipping into depression.

You better check, that's the way the Fed been playing the game for some time.

Food stamps and unending unemployment are why you didn't physically see a depression.