The View From 1776

Most Americans Want To Cut The Federal Deficit

The Obama administration talks about it, but does the opposite.

Posted by .(JavaScript must be enabled to view this email address) on 07/29 at 11:52 PM
  1. Yes, most want to cut the deficit but, doing so will cause a depression. Bernanke and others have all warned the economy is too weak to pull the spending.

    Yet, not pulling it makes things worse, just later on. The President's "Debt Commission" has announced that we can't tax or grow out of this mess as has Bernanke and others.

    We have to cut spending and guess what, we will and it won't even dent the deficit and in fact will make it worse.

    The Cities and States are going to lay off hundreds of thousands of workers according to Bernanke to try and balance their budgets. So while government will be cutting spending, it will be cities and states, not the federal government which is even talking of spending more.

    The cuts in spending by cities and states will cause another drop in tax revenues as hundreds of thousands are no longer paying payroll and income tax. They will no longer be paying as much sales and property taxes as the layoffs will mean more home foreclosures.

    The deficit must be cut but, that means depression and as soon as the signs of it start, watch the voters start screaming at Congress to "do something," even though the only thing they could do is delay the depression with more deficit spending.
    Posted by JanPBurr  on  07/31  at  03:17 PM
  2. "Spending or depression" are not the only two alternatives, Jan.

    Targeted spending to get the economy rolling, followed by spending reductions to reduce the deficit can work (as it did under Clinton).
    Posted by .(JavaScript must be enabled to view this email address)  on  08/02  at  11:49 AM
  3. J.Jay

    It didn't work under Clinton contrary to the media. We saw every sector of manufacturing job growth go into decline from 1994 to 2000. Every sector. Not one didn't go down. The only aid to the budget was due to the tax cut for capital gains and the easy money policy of the FED that created the unsustainable tech bubble.

    The bubble and tax cut, not targeted spending, created the unsustainable improvement. The Clinton years were a disaster and it wasn't his fault. It was due to decades of using the policies of easing money supply and that made each decade worse until under Clinton, it took a bubble to create an illusion of growth and improvement.

    What good is it to lower the deficit in a bubble if you know you have to increase it even more when the bubble bursts to avoid a depression? If Bush hadn't done what he was told to do by Greenspan, Goldman Sachs and the CFR advisers and appointees, we would have had a depression as bad as the 30's thanks to the Clinton (again, not his fault) bubble.

    How can anyone think the Clinton years were good when they were making things worse to come, just as what Bush did made it worse for this President and what this President is doing will make it worse when this falls apart.

    Anyone that understands basic economics knows that we have not had a recovery for decades, only economic improvements that were unsustainable with each one making the debt burden worse.

    Just think, under Clinton and the largest bubble since the 20's, he couldn't even reduce debt. He came close (just under $17 billion increase) but, still couldn't reduce debt. That is total insanity to think you have done "good things" when it was still getting worse due to something unsustainable.

    It wouldn't have mattered who was President under Clinton, Bush or now Obama. The results would be the same due to the decades of bad policy, the FED actions and the Goldman Sachs and CFR cabinet members and appointees that tell Presidents what is best for the nation. They, not Presidents run the nation and the two parties. We elect politicians that know nothing about economics or monetary policy. They depend on their advisers from the "non-partisan" think tanks like the CFR and Trilateral Commission and IMF and World Bank and BIS that the banks created to advise government.

    Clinton was a disaster. Bush was a disaster. This President is a disaster and yet, if this President doesn't keep doing what he is doing, we have the depression now instead of later.

    Even the President own "Debt Commission" has joined Bernanke in flat-out stating, we can't grow or tax out of this.

    So how you can say that "targeted spending" will do any good when the President's own advisers say it won't is beyond belief. The most it can do is like under Clinton and Bush is to delay the depression and make it worse.
    Posted by JanPBurr  on  08/02  at  12:22 PM
  4. J.Jay
    I think we would all love to think we can get out of this but, this is normal. This is what happens to a nation that has done what we have done for decades if not a century.

    The U.S. government, state governments, local governments, businesses and American consumers have collectively piled up debt that is equivalent to approximately 360 percent of GDP. At no point during the Great Depression (or at any other time during our history) did we ever come close to such a figure. We have piled up the biggest mountain of debt that the world has ever seen, and now that gigantic debt bubble is beginning to pop. As this house of cards comes crashing down, the economic pain is going to become almost unimaginable.

    The following are 40 bizarre statistics that reveal the truth about the collapse of the U.S. economy....

    1 - According to one shocking new survey, 28% of U.S. households have at least one member that is looking for a full-time job.

    2 - A recent Pew Research survey found that 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the recession began.

    3 - There are 9.2 million Americans that are unemployed but that are not receiving an unemployment insurance check.

    The rest of the statistics are equally disturbing and they take years to work out even if the nation is not in debt or economically unsound as we are.

    I am one of the people that may die as a result of the collapse so I can guarantee you I don't want it to happen. I live in Arizona and 115 degree heat most years (this year has been slightly cooler). That means that when the government falls, we will have massive power outages and that means no A/C for me and millions of other seniors in the southwest. That means millions die.

    It will mean the closing of hospitals as they will not be able to get fuel for back-up generators and without power, they can't function. That means millions across the nation that won't get the health care they need.

    Again, this is normal for a nation in our condition. And, while we don't know if it will be months or a few years, we know it is coming since we can't grow or tax out of this as the President's own advisers state.

    I don't write this because I want to. As I stated, I am not prepared because of my and my wife's cancer to deal with this. I am only repeating what our own government accountants are waring of and have warned of even when Bush was in office. I am only warning about what our current President's advisers are warning. I am only warning of what Bernanke has warned of. I am only warning of what the CBO has warned of.

    What good does sticking our heads in the sand do? We have some time to prepare and hopefully, it will be a couple of years, not a few months as some believe due to the speed things are going with the dollar.

    This morning the dollar is below 81 at 80.90 or so. That is very bad for us. If the dollar continues this slide, businesses around the world will stop accepting the dollar like they did the last time in slid into the 70's. With the G-20 calling for an end to the dollar as the global reserve currency, this could cause hyperinflaton even if we are in the worst depression we have ever seen or even if we are in a period of economic improvement. Even our economic allies in the developed nations have been turning their back on us to align with the emerging market nations due to our economic condition and policies that continue to drive jobs, business and investment dollars out of the U.S.

    I am, however, optimistic about the future for the nation. I believe after the collapse, we will rebuild from the local level up without much of a Federal Government as it won't have hardly any money due to the economic collapse that won't even pay for S.S. and Medicare and the inability of the Federal Government to get loans due to the collapse of the dollar.

    I believe the nation will rebuild and be even better than ever before, at least in the well run states. I also believe that the well run states will prevent their citizens from having to support the poorly run states or cities, forcing them to reform. This will be a great nation again and it will compete globally.
    Posted by JanPBurr  on  08/02  at  12:53 PM
  5. Jan,

    Are you stuck in Arizona? Can't you move north to get out of the heat?
    Posted by .(JavaScript must be enabled to view this email address)  on  08/03  at  10:39 AM
  6. My wife and I both have cancer and our cancer Dr. that is treating us is here and we like him very much. But, there is more. Due to an insurance Co. going bankrupt, we ended up on a state run plan that is only good here. Az. has cooler places but, they aren't near cancer treatment centers.

    As long as we have AC, it isn't bad here and hopefully, we have a couple years and not just a few months to move. By then, we will know whether we are going to be able to be in some type of remission or in my case, gone. I am in worse shape than my wife and on my 4th treatment mix to try and find one that works. I may not beat it but, that is OK due to the most blessed life a person could want.

    Thanks for asking as that suggestion is one I would love to do. Actually, I would like to move to Indiana, near family, with a piece of ground, well and septic with solar power.
    Posted by JanPBurr  on  08/03  at  03:07 PM
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