GOP To Fed: Let Economy Fail SO WE CAN WIN.

[Free Thinker]

Quote from jem:

The author of that piece is the moron.

The economy is the tank because we have been spending the country in to a paralyzing deficit of trillions and trillions of dollars. These fools in charge of spending have put each american in debt about a million dollars.

To continue the spending the fed is has to buy the debt itself... (QE 1 and 2) ... destroying the value of our dollar.

And leftist jokers and want us to continue those policies?

Its the fear of continued spending, more taxes and weaker dollar which have frozen investment and hiring.

What is it they say about the definition of insanity and doing the same thing over and over.

did you miss economics class in school?


"Its the fear of continued spending". if this were true it would show up in bonds as higher rates. what do we see? all time lows.

"more taxes" effective taxes on business are near all time lows.

"weaker dollar which have frozen investment and hiring." a weaker dollar spurs exports which should cause hiring to produce those exports.

 

[Ricter]

Quote from Free Thinker:

did you miss economics class in school?


"Its the fear of continued spending". if this were true it would show up in bonds as higher rates. what do we see? all time lows.

"more taxes" effective taxes on business are near all time lows.

"weaker dollar which have frozen investment and hiring." a weaker dollar spurs exports which should cause hiring to produce those exports.

What you'd expect to find is that businesses are turning down sales because they don't have the staff to meet orders, and they won't hire the staff because they're fearful of future costs. Laughable.

 

[Arnie]

If this were a normal business cycle recession, I could see the logic behind some stimulus spending. But this isn't the case. This was/is a credit bubble that has lead to paralysis. Please explain how an increase in govt spending is going to change that? Every penny they spend first has to come from the private sector, either through higher taxes, deficit spending, or a debasing of the currency. Wouldn't it make more sense, assuming the govt wants to "stimulate", to let more money stay in the private sector via tax cuts? At least then, you would have the benefit of the markets allocating that extra money.

 

[Ricter]

Quote from Arnie:

If this were a normal business cycle recession, I could see the logic behind some stimulus spending. But this isn't the case. This was/is a credit bubble that has lead to paralysis. Please explain how an increase in govt spending is going to change that? Every penny they spend first has to come from the private sector, either through higher taxes, deficit spending, or a debasing of the currency. Wouldn't it make more sense, assuming the govt wants to "stimulate", to let more money stay in the private sector via tax cuts? At least then, you would have the benefit of the markets allocating that extra money.

We've had this discussion. The private sector as enterprise has more cash than it ever has, and credit is readily available to SMEs that can demonstrate sales or projected sales. The market is directing it--nowhere (if not overseas).

Edit: to address your first question, in addition to properly targeted stimulus spending I think some form of debt relief should be considered.

 

[jem]

Quote from Free Thinker:

did you miss economics class in school?


"Its the fear of continued spending". if this were true it would show up in bonds as higher rates. what do we see? all time lows.

"more taxes" effective taxes on business are near all time lows.

"weaker dollar which have frozen investment and hiring." a weaker dollar spurs exports which should cause hiring to produce those exports.

a projected weak dollar also lets investors know their returns will suck relative to returns in other investments. If you project a weaker dollar at home.. you move factories, jobs and investments overseas.

Just like GE did.

 

[Free Thinker]

Quote from jem:

a projected weak dollar also lets investors know their returns will suck relative to returns in other investments. If you project a weaker dollar at home.. you move factories, jobs and investments overseas.

Just like GE did.

you might want to think about that one a bit.

 

[peilthetraveler]

Quote from Free Thinker:

did you miss economics class in school?


.

You should try that with your finances freethinker and let us know how it works.

First do what the government does...go in debt about 6 to 7 times your income. (government is 15 trillion in the hole and only brings in 2.2 trillion per year) Then when you start feeling that pain, go in debt some more so that you are not financially ruined.

Then come back and explain to those of us that didnt take the same economics class you took how you got back on your feet.

I mean, if this works for you, then it should work for the government too!

 

[trefoil]

Quote from Free Thinker:

you might want to think about that one a bit.

Don't make him, please. My head's spinning enough from the ill-logic already.

 

[jem]

Quote from Free Thinker:

you might want to think about that one a bit.

Remember this is a post bretton woods world.

If you were to make an investment with a 20 year payout.

Would you want to invest in a country whose currency was being debased and no end in sight of racking up debt past the point of its ability to pay it back.

Seriously... i would love to see the tortured liberal logic... explaining that.

 

[jem]

Quote from trefoil:

Don't make him, please. My head's spinning enough from the ill-logic already.

same goes to you.

Would you invest in the country whose currency is being debased?