Buffett's Partner: 'It's Over' for U.S. Economy

[jedwards]

Basically, someone is going to have to raise taxes. No ifs, ands, or buts.

The US will NOT be able to earn or stimulate its way out of this mess. If there wasn't a massive deficit or massive debtload, it might be possible to borrow our way to prosperity, but it looks like we've hit the political limit for most people around the world.

Since consumer spending is too low at this point to support a robust growth, the only way the government is going to get enough money is to raise taxes. You can't cut spending any further without damaging the economy, and if you can't force consumers to spend, you tax them, and then spend that money yourself. Unfortunately, it's the only way out. I predict whoever gets elected in 2012, raising taxes will be the FIRST thing they do. Obama won't have the guts to do this before then.

 

[lasner]

Elect Hilary Clinton.....That way you have Bill Clinton back in Office

 

[the1]

I believe he would live up to his promises but this type of change (shivers as I type that word) would be painful. Those who are currently on Government Subsidies would be hurt badly. Imagine your Medicaid being pulled from under your feet. Now imagine that those people vote. See where this is heading.....

Those who live on Socialism love Socialism. Those who pay for Socialism don't like Socialism.

Quote from Illum:

Ron Paul is definitely worth it. He claims he will end wars and reign in deficit. Is there anything else that will fix this mess? He may be full of it too, or he may not have the power once elected, but worth a shot.

 

[Humpy]

If I ever get rich maybe I'll buy myself a railroad too


toooooooooootooooooooooot

 

[377OHMS]

I am conservative but I thought the country was was run with fiscal responsibility during Bill Clinton's terms. I used to attribute that to Robert Ruben but lately I give Bill Clinton a little more direct credit.

I blame Greenspan for the whole thing when he lowered rates in the face of an overheating housing market. That occurred during George Bush's watch so he is responsible. The lawmakers cheering on the inappropriate lending at Fannie Mae are also culpable. The homeowners who came to regard their equity as "real money" and borrowed against it bear indirect responsibilty too.

But the actions Obama has taken since "inheriting the problem" have been so profoundly unsound that it has worsened the situation and has induced unnecessary side effects. The guy and his boy Geithner are downright pathethic with regard to the economy. Bernanke seems to be in the adminstration's pocket.

We can't immedietely get an new president but we could get a new Fed chief and Treasury Sect. That would be helpful.

 

[Scataphagos]

Quote from jedwards:

Basically, someone is going to have to raise taxes. No ifs, ands, or buts.

The "solution" to economic problems has NEVER BEEN TO RAISE TAXES! The "problem" is always excessive spending... THAT'S where focus should lie.

However, raising taxes will be the card which is played... I hope it's a tax hike on EVERYBODY... not just top earners.

 

[nutmeg]

Minorities trying to take over the country. They own all the gas stations now

No biggie,running a gas station is the equivalent of picking tomatos. A shit job no American wants to do.

 

[unretired]

Quote from BarneyFrank:

fuck them all, the US government is one big cluster fuck of college buddies

Dude ... say what you reeeally think!

Say it again ... I enjoyed it a whole lot the first time.

 

[bkveen3]

Quote from ..........:

I respect Ron Paul,but what could he do with a Democratic and Republican Congress ?

If Obama is having problems with with 40 Republicans against him,what can Paul do with 100 Senators against him ?

Same thing as JFK or any other president. Executive Orders. Obama is a big fan of them too.

 

[jedwards]

Quote from Scataphagos:

The "solution" to economic problems has NEVER BEEN TO RAISE TAXES! The "problem" is always excessive spending... THAT'S where focus should lie.

However, raising taxes will be the card which is played... I hope it's a tax hike on EVERYBODY... not just top earners.

For the record, I don't generally support raising taxes, but I think there may be no other way out of this mess. The problem we have here is that both Bush and Obama FUCKED UP our finances and when we gave them $700 billion, instead of using that to prop up the housing market, they gave it to the banks so that the banks could pay themselves $150 billion in bonuses. And this didn't create jobs, it lost us millions more over 2009.

Now, because housing is still fucked, consumers don't want to spend, either because they have lost jobs, or they have lost too much money on their house.

People feel poor, and when they feel poor, they stop spending.

When people stop spending, there is no more job creation, and instead job losses.

When the government raises taxes, people stop spending, because they feel poorer. But in this situation, people have already stopped spending, so raising taxes will have limited impact on decreasing consumer spending. The government would then turn around and spend things themselves, in hopes of creating new jobs through further stimulus.

If the government cuts spending right now, then nothing will be there to prop up the economy, and because we have turned into a 70% services-oriented economy, we can't even export our way out of this. We're really fucked. The only way we have out of this mess is like what Peter Schiiff said, which is to build things that other people want to buy.