Related: Name the Author – New York Times, August 2, 2002
“The basic point is that the recession of 2001 wasn’t a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”
It’s all Bush’s fault! /sarc
And of course the Dem’s controlled both houses of congress during part of the highlighted “Bush Years”.
They voted for him.
Buy the ticket–take the ride.
I wonder what Hunter would have to say about BHO.
Why don’t we annex America? Make it our new territory? It’s obvious they can’t manage on their own.
Hope and change Alinsky style, is anyone with a brain surprized? America must impeach this communist now, if looking at the results of Turdoh running Canada is not lesson enough for the Americans then hang on Yanks your taxes are goin one way. Today our Ed meets with the vapid airhead Speaker of the house, hopefully Ed will not grovel to this intellectually bankrupt idiot, but I wont hold my breath.
Perhaps you may have noteiced in the past that every time there was a change in government of Canada, the party that took over went into big deficit.
They blamed it on the previous government, if the previous government was run by a different party.
This is Soro’s Pres. Bought and paid for. Why does it surprise his fiscal agenda will crash the US dollar with unmanageable debt defrayed with monetization?
Insider trade papers are already saying Soros is buying gold.
You connect the dots yourself.
“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
~ Charles Dickens [in David Copperfield]
(If only I could live by that rule…)
Bill:
Buying gold seems like a good idea.
I would recommend either gold or gold/silver stocks.
Like the ads say, no government can tinker with the value of gold.
Most of the last US stimulus cash went to Governments at every level to keep their armies of bureaucrats getting pay checks.
2 classes of people exist: The lucky Government workers and the rest of us. Monarchy 101.
Deficits should only be created in times of major natural disasters or war (Defense not offence) and raising taxes for anything other than these made illegal.
Indeed Lev, there may be some truth to your comment, but I’m not sure what point you’re trying to make. There’s a world of difference between a new, incoming government indulging in a little pork barreling at the outgoing government’s expense, and running up current and projected deficits which run 10-15% of GDP — PER YEAR.
The former is politics as usual, as you correctly observe. The latter is ideology run amok, spending at unprecedented rates.
Bear in mind, economists generally suggest a healthy amount of sovereign debt to GDP would run around 35%. Recall in the mid-90s, Canada was in financial crisis as debt:GDP went north of 50%. The U.S. debt:GDP ratio was already unhealthy (about 75% — federal debt only, this excludes state and regional debt) as the Bush administration was leaving, but Obama has pushed debt:GDP to 100% in barely 18 months, with nothing but further increases projected for the next several years.
This is truly frightening, and bodes ill for the future of the Republic.
As always, IMHO.
Note that Soros is not buying certificates to purchase gold, or how some folks see security = “this certificate entitles you to x gold”
He is buying, “gold”. the heavy stuff… the stuff you can’t stuff in your pockets. Paper entitling you to purchase gold have been over subscribed, and in the event of a paper crash, those people will be very angry that the banks cannot supply. Those will be the skinny people walking around in a daze.
And what does the current US administration have for its troubles? The legacy of, a legacy debt. If the Republicans come to office and spend more, (As the point that Lev and Colin in Mission mention) they’re hooped. If not hooped already. What do the taxpayers of the US have for its troubles? Some new highways, some new bridges, and a class of people that feel they’re entitled to rule by decree. Those people will be eaten when the noose tightens. yeah, that’s supposed to be an uncomfortable statement.
jlc
Point taken. Unfortunately, the public education system in the US (and Canada) has ensured that the average Joe can’t comprehend that simple concept you’ve outlined.
In my view, education must be the foundation of our game plan to oust the socialists and Progressives once and for all. So long as the loons are running the public education system we will never win the fight with facts.JMO
I’ll bet the author is Krugman. As far as Soros goes, he’s not only buying gold, he’s shorting the dollar. SHORTING THE DOLLAR WITH HIS GUY IN THE WHITE HOUSE.
This is not good.
Well if we weren’t being partisan hacks, some of us would readily acknowledge that one of the reasons that the first year of Obama’s admin is as high as it is can be attributed to the implementation of Bush’s massive stimulus bill that he signed before leaving office.
A gold or silver certificate does not mean there is gold or silver to back it up. Gold is only worth what it is worth when it no longer resides in the ground.
And people ask where the tea partiers were when bush was driving the country into debt.
Yeah, this is only an order of magnitude or so worse. No reason to get upset all of a sudden.
Colin from Mission
The only point I’m making in my comment is that politicians suck what ever is teir color.
There are very few and none that keep their word and are up on the level speaking what they think.
Off the limited memory, Ralph Klein, Chris Christie come to mind.
You folks that blame Bush forget one thing,OBAMA HAS CONTROL OF THE HOUSE AND SENATE AND CAN STOP DEFICIT SPENDING NOW!HE HAS HAD THIS POWER FOR NEARLY TWO YEARS!THE DEMOCRATS CONTROLLED BOTH HOUSES BEFORE OBAMAS ELECTION AND BUSH COULD ONLY VETO BILLS AND COULDNT PASS ANY WITHOUT BOTH HOUSES APPROVAL!The reason that I highlited this is that some people cant seem to see the reality of whats happening in the U.S.A.
Obamba will have the Fed print money diluting the currency beyond recovery, if it’s not already. Watch and see.
He needs to keep the economy floating on thin air if necessary for 2.2 more years. Avoiding either impeachment or a lynching, all that matters is that he completes his one and only term intact for the memoirs and the validation of the inevitable rewritten histories.
Kruggers is always good for a laugh. From 2002
http://www.nytimes.com/2002/10/01/opinion/dealing-with-w.html?scp=6&sq=%22W%20shaped%20recession%22%20Krugman&st=cse
“In the end, the need for stimulus was less urgent than it seemed at the time [to Kruggers, but not to Bush]”
“Well if we weren’t being partisan hacks, some of us would readily acknowledge that one of the reasons that the first year of Obama’s admin is as high as it is can be attributed to the implementation of Bush’s massive stimulus bill that he signed before leaving office.” – Gordon
Uh yeah, that would be the first minor spike down. the second spike? The one gathering the attention? That would be all Obama.
Yea that’s Krugman’s handiwork.
What’s the old saying -be careful of what you wish for – you may get it.
Over at http://www.mybudget360.com/ the column on ‘submarine housing’ has an map of the USA regions with underwater mortgages.
I looked at it and wonder why the big ciddy guys think they are smarter than the simple rural folk to run the country.
No matter how good a PM we have, It will be no shield against having Obama in office. When 85% of our economy is tied to the States. Than they tank. Do folks really think its not going to effect us?
If Americas economy shatters, ours is not far behind.
Throw in the stealth Jihad in our Nations & we have a toxic dump of misery headed our way.
This NOV. is more important than most think here in Canada.
JMO
The outlook is very grim. The most likely scenario, is that Congress taxes away every dollar of profit in US companies ( strictly as a temporary, emergency measure, of course ) in the name of lowering the deficit. At that point, all bets are off; all US 401 ks start investing strictly overseas, resulting in new business formation and expansion in the US coming to a standstill. Unemployment will skyrocket in the private sector. It is only a matter of time after that that the US becomes Brazil.
The only way to avert this is by cutting spending to fit taxes collected, and of course by repealing Obamacare, which represents an unlimited claim on US profits. ( all the corporate liabilities in the bill were put carefully into the hands of bureaucrats answerable only to Obama, which has the advantage of avoiding further Congressional votes. ) America’s economic fate now lies, as it has for the last 100 or so years, in the hands of Congress. If it changes in Nov., there is a chance.
Revnant Dream:
Canada would take a hit as the US economy collapsed, but her finances are basically sound, and has a very advanced economy. She will recover from any such hit, and prosper, as Switzerland has done through centuries of tumult in Europe, so long as she has grown-ups in charge. The leadership is the key thing.
Canada will do fine after a US collapse, provided it does not lead to warfare. There are a lot of resources for 30 million people to defend in a world without the US military.
“Canada’s trade deficit swells as exports slide” – financialpost.com/news/Canada+trade+deficit+swells+exports+slide/3499768/story.html
“Canada slips in competitiveness rating” – financialpost.com/news/Canada+slips+competitiveness+rating/3499709/story.html
Meanwhile, in Canada, the Conservatives can do no wrong (at least when judged by the coverage it gets on SDA).
Posted by: tim in vermont>
“There are a lot of resources for 30 million people to defend in a world without the US military”.
That’s it in a nutshell, and why Canadians need to fear a US economic collapse. It is also the reason to have a voice in the US illegal immigration problems and anything else that leaps across our vast undefended and indefensible border (by Canada at least).
There’s allot of “gold” in them thar hills!!!!