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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (63616)	3/27/2013 11:33:04 AM
From: LLCF	Respond to of 71588

No holes needed... you must forget what my positions are on these things... which isn't surprising, since you seem to love to group people into those that agree with you... your "comfort buddies" that you can just hang out with and poke fun at others with... and "the other side"... those bent on destroying the world. What it really is is "the world according to you"... your own little version that is all knowing and unshakable. OK... on to you post: We could quibble about the number of Trillions you bandy about as well as forgetting the Trillions wasted in the ME, but your point about deficits is essentially correct of course... although the Fed would probably have eased even more and have a larger balance sheet than currently to take up the slack... essentially the fed is on board with "stimulus"... and they were probably happy THEY didn't have to do it. We can see that in that Obama's stimulus was cheered by dopey economists as a way to get our of economic malaise... So let's be clear... this was not some sort of Obama/communist plot to ruin the country... this is mainstream (economically speaking) stuff... go back to the 80's and 90's and the "Greenspan put option" concept. Pretty much the same thing would have happened under McCain... Oh, gee-whiz, maybe minus a hundred billions or so... big deal. Now let's visit the previous strategies that also contributed to our problem: The “debt explosion has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts.” - Reagan's budget director nytimes.com "Well, you know, that’s the heart of the crisis. It’s deep and stubborn. And it begins with the fact that after the early 1980s, we developed two free lunch parties in this country. The Democrats were always the free-lunch party of the welfare state and the Great Society programs and so forth. And the job of the Republican party, which was accomplished pretty reasonably under Eisenhower and, actually, initially under Nixon, who then finally threw in the towel and went totally Keynesian... snip}" peakprosperity.com "Well, after 1980, I was a supply sider, but not a free-lunch supply sider. And when the free-lunch version of supply sides set in and then became party doctrine, we ended up by 2010 with both parties wanting to give away the credit of the United States. The Democrats with more spending or defending the spending was their entitlements that were growing insupportably like Medicare or Social Security. And the Republicans cutting taxes randomly, continuously, and under every imaginable economic circumstance without offsetting spending cuts or a total framework of fiscal discipline. So we get to the point today where you now have Republicans saying no taxes, any way, any shape, any form, when the revenue is at fifteen percent of GDP, the lowest in history. And you have the Democrats defending what I call the twenty-four-percent line; that’s where spending is. And you have the President a few days ago threatening to veto a bill if it reforms entitlements and is put on his desk and it doesn’t tax the rich at the same time." "Now, that is a prescription for Banana Republic fiscal policy at best, and even more irresponsibility if you look at the real facts. Now, why did we get into a situation where our democracy became deformed and both parties became free-lunch parties and we no longer have a fiscally conservative party left? I blame it on the Fed." Yep, me too.... Fed distorted everything... supporting the confluence of two dogma's... entitlement democrats and no tax republicans... two foolish groups... how? Well, the fed has had interest rates far too low for decades, giving false signals to markets at best, and creating an entirely false framework for budget decisions. The government has been using false capital costs in budgets for ages... and the WORST is RIGHT NOW. When rates start to move up, the deficits will be MUCH WORSE than anyone is predicting now as debt service costs soar. Man up, think outside the box... this has little to do with dems vs republicans.... that war is petty and beside the point... Republicans are as much of the problem as democrats.... just imagine if Republicans would drop their social agenda about sex, religion, "marriage" and immigration, and overseas intervention... they would probably still control both houses AND definitely have the presidency. To blame this in democrats for "thinking wrong" is part of the Republican problem... and it won't go away till they "quit it". LOL DAK