pdog
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Lol !!
Why is this "lol". Please answer my questions as well.
Lol !!
I don't care about California. We're not debating Texas and California Fenton. We're talking about the effects of such a policy on the national level. And if you want to talk about states, look at Kansas, louisaniana.. Oh, did I mention Texas isn't even doing that great?
If government spending at the levels we are seeing helps the economy, then we wouldn't be teetering on the brink of recession after so many years of high government spending - nearly 16 years now.
Why is this "lol". Please answer my questions as well.
If government spending at the levels we are seeing helps the economy, then we wouldn't be teetering on the brink of recession after so many years of high government spending - nearly 16 years now.
If the economy requires this level of priming, we should repair the pump rather than run the reservoirs dry.
Because he said investors were the ones who built all that new infrastructure in Spain.
Spain like Greece flooded European banks with worthless bonds trying to spend their way to prosperity
It isn't. It is the loss of confidence in the value of currency that hurts. We have money that holds value because people believe it is valuable. Nothing backs up the dollar other than that belief because it actually has no intrinsic value. If the belief disappears then the money no longer has value or at best has less value. If the money loses value fast enough you have serious inflation and serious inflation has destroyed many an economy. Just look at Brazil half a century ago or look at prewar Germany.
But that is only a percentage. Debt service on the debt would have to exceed deficit spending for that to be true. In other words, if debt service is 200 billion, and deficit spending is 600 billion, there is actually a $400 billion dollar GAIN to the private sector.
Black and white fallacy. There's nothing to say that current levels of deficit spending are "just right". Further, to me this points to a dysfunctional private sector. Despite injections of up to 1T a year, the private sector isn't employing people. Why isn't the private sector, with it's record profits, adding more employment? How is cutting government spending suddenly going to fix that?
Spain experienced real gdp growth with an increase in its fiscal deficit.Ive already mentioned Spain, Japan, Venezuela, Greece, Italy but you people keep claiming those are " bad examples ".
And Kansas and Louisiana is in allot better shape than California is.
We've blown through a record amount of debt in the kast 8 years in the US and our economy is still on life support and thats with record low interest rates
Posting ANOTHER debt thread isn't going to make " stimulus to increase aggregate demand " a effective strategy for growing market economies
Black and white fallacy. There's nothing to say that current levels of deficit spending are "just right". Further, to me this points to a dysfunctional private sector. Despite injections of up to 1T a year, the private sector isn't employing people. Why isn't the private sector, with it's record profits, adding more employment? How is cutting government spending suddenly going to fix that?
Claiming the public sector robs from the private sector is a silly claim when t.
Liberal math at it's finest. LOL. That 600 has to be paid some time, representing a LOSS to the private sector.
How else does the public sector get fed than by taxes?
The reservoirs can never run dry though.
I wouldn't be to worried Polgara. People have been screaming we're doomed and that we're going bankrupt for decades. Did you know that every single country on earth is in debt? Even if the dollar isn't the favored currency, so what? Other countries like Australia aren't the worlds favored currency and they're doing just fine, their problems don't come from their debt either. Private sector debt is the real issue. And we all seem to ignore it. Private sector liabilities.. We can't all live off of bank created money forever. This is why governments run a net deficit, whether they choose to or not. "Lower standard of living." What will cause this?Good morning, fmw. :2wave:
:agree: Even though the American people still tend to believe in the dollar - what choice do we really have? - other countries around the world apparently don't share our optimism. I read recently that 57 nations, with more joining the group all the time, including some of our long-term allies - agree with the IMF that what is now needed is a basket of currencies which will replace the dollar as a "most favored" currency. That is very bad news for us, IMO, and most people are not going to like our new lower standard of living, but it's our out-of-control spending that has brought it on, saddling us with a $19 trillion debt that we are going to have to pay nearly half a trillion dollars in interest charges alone every year! We can't even afford us now, yet the spending continues! Craziness! :thumbdown:
Heh. Of course not. They never do, until they do.
Spain collapsed due to austerity and experienced real gdp growth with an increase in its fiscal deficit.
Japan? They continue to do stupid stuff like negative interest rates, believing that banks can loan reserves, and on top of that, they focus on monetary policy, corporations are hoarding, savings are way to high, not enough sales/can't get inflation..
Venezuela? Jesus, I've addressed this way to much already. Decimated supply.
Greece? LOL. Greece uses the Euro. They aren't a currency issuer!
Italy? What about Italy?
LOL. Kansas is an absolute disaster. Same with Jindal's little experiment.
Yeah, when looking at numbers, the increase in government bonds seems to be worrying. But really, every other country on earth continues to increase private sector/government debt. Why? Because money is debt and debt isn't a bad thing.
A Stimulus increases aggregate demand, this isn't debatable. And a stimulus does indeed grow economies, this is a fact, it's not a hypothesis.
It's a political decision to not refill the reservoir. The government can never run out of dollars, since the government is the currency issuer.
Liberal math at it's finest. LOL. That 600 has to be paid some time, representing a LOSS to the private sector.
Good morning, fmw. :2wave:
:agree: Even though the American people still tend to believe in the dollar - what choice do we really have? - other countries around the world apparently don't share our optimism. I read recently that 57 nations, with more joining the group all the time, including some of our long-term allies - agree with the IMF that what is now needed is a basket of currencies which will replace the dollar as a "most favored" currency. That is very bad news for us, IMO, and most people are not going to like our new lower standard of living, but it's our out-of-control spending that has brought it on, saddling us with a $19 trillion debt that we are going to have to pay nearly half a trillion dollars in interest charges alone every year! We can't even afford us now, yet the spending continues! Craziness! :thumbdown:
Hmmm......maybe investors are reacting to something
Foolish progressive policies that tax investment capital and even more foolish policies that seek to redistribute are most likely.
I'm not sure people think reduced government spending helps the economy. What they fear is that the temporary advantages of government overspending will finally come to an end and the ensuing crash will be miserable. It doesn't matter who prints the money. You cannot pick money from trees forever. It is not a sustainable activity. Just look at the what has happened to countries who have seen a loss in confidence in their currency.
What does help the economy is a reduction in taxation because it leaves more money in the hands of taxpayers who can spend in a sustainable way. The left wing economics will eventually hurt us badly. It can't be otherwise.
Question for discussion. Where has this idea come from?
C+I+G+(E-I)
How does cutting G when the economy is experiencing slow growth help anything?
For example, here is Australia:
Australia enters the deflation league of sorry nations | Bill Mitchell – billy blog
View attachment 67200707
Pathetic.
Meanwhile, in Spain:
Spanish government discretionary fiscal deficit rises and real GDP growth returns | Bill Mitchell – billy blog
I don't even need to discuss the failure of Austerity and the horrific actions of the IMF.