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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (107128)	1/8/2012 5:58:42 PM
From: Road Walker	Read Replies (1) \| Respond to of 149317

The key point of the article, I think, is that Japan's people are doing quite well, and their infrastructure is world class. The opposite of what's happening here. And yet they are rediculed by you and others. This country is falling apart, and no one is willing to invest to bring us back to world class. Your children will have to deal with 3rd world infrastructure. For most of my lifetime that wasn't the case, we made the investments. It's a simple problem. We don't have the will to raise taxes to a level that has in the past sustained our country. That's it. The money is there. The rich who have benefited so much from the sacrifice of previous generations need to be taxed at the same rate, so that we can catch up and again become a great country. Name s great country with "small government", anytime in history. Name a great country with low tax rates, anytime in history. You get what you pay for.

To: RetiredNow who wrote (107128)	1/8/2012 8:18:56 PM
From: tejek	Read Replies (1) \| Respond to of 149317

How on earth is a 300% debt to GDP ratio sustainable? First I believe the figure is closer to 200%; not 300%. Secondly, its sustainable because the Japanese have a high saving rate and trade surplus: The combination of low household saving and substantial government dissaving would normally force a country to borrow from the rest of the world. But Japan maintains a current-account surplus and continues to send more than 3% of its GDP abroad, providing more than $175 billion of funds this year for other countries to borrow. This apparent paradox is explained by a combination of high corporate saving and low levels of residential and non-residential fixed investment. In short, Japan’s national savings still exceed its domestic investment, allowing Japan to be a net capital exporter. The excess of national saving over investment not only permits Japan to be a capital exporter, but also contributes – along with the mild deflation that Japan continues to experience – to the low level of Japanese long-term interest rates. Indeed, despite the large government deficit and the enormous government debt – now close to 200% of GDP – the interest rate on 10-year Japanese government bonds is just 1%, the lowest such rate in the world. project-syndicate.org One size does not fit all......esp. when it comes to economics. Its this lack of flexibility and understanding of economics on the part of Rs that's really hurting this country.