Related – I begin with the thesis that we cannot possibly raise taxes sufficiently in the near term to stop a federal borrowing disaster from forming. However, in deference to people’s sensibilities, the normal humn reluctance to accept unpleasant truths, and all the nonsense in the media, I think I should support that thesis rather solidly.
David Goldman notes that during the Communist era,
when many non-Communist third world countries were
in chaos, that the US above all was a safe place for
human and financial capital. That advantage allowed
for many mistakes to be covered up, and many unrealistic expectations to propagate.
That time is largely over, he notes, but mostly the advantage was thought to be absolute and not relative, and reality has not been grasped.
Two things scare me.
The first is that despite the catastrophic mess Obama has made of the US economy, the US dollar is still the preferred global currency, preferred to even to the infamous Euro.
The second is that almost 50% of Americans still think Obama is doing a good job, managing the economy very well and want him to have a second term.
Heres another note To the States swan song.
Yet another Obama fantasy company dies . Yet people still don’t get it with this Nation buster.
Solar-panel company lays off 40 employees
http://www.toledoblade.com/Energy/2012/01/17/Solar-panel-company-lays-off-40-employees.html
The fanatical commie/Islamist in hiding, aka, the Zero,IS going to introduce bills to raise taxes,both personal and corporate. He has no choice if he wants to keep giving freebies to his base. This will result in one of two things: the complete collapse of the USofA(which is NOT an unintended consequence to the Zero), or: they will have a civil war that will make the earlier one look like a school fight at recess.
Romney will be a slightly right leaning version of Obama, which of course means the status quo will be maintained and the US economy will continue to deteriorate while even more people work for the ever growing government and the US continues to borrow money to keep that government welfare state running. The US is doomed whether Obama or Romney ‘wins’. An Obama/Clinton ticket will likely beat a Romney/???? ticket. A lot of GOP voters won’t even bother voting for Romney in hopes that Obama will bring the collapse sooner.
Inevitably the US government has to balance its budget. Pretty soon they won’t have a choice. Mind you all the idiots keep buying US government bonds at close to no interest. I guess it’s the lesser of evils. China is going to end up owning everything. They sell us plastic doodads, we give them money, they buy our companies.
Name one candidate who *will* tackle this mess.
“China is going to end up owning everything. They sell us plastic doodads, we give them money, they buy our companies.
Posted by: Scar at January 17, 2012 4:38 PM”
The same goes here in Canada.
‘bama borrows a page from the crouton/martini playbook…
http://news.yahoo.com/treasury-dips-pension-funds-avoid-debt-limit-202850021.html
Treasury dips into pension funds to avoid debt
WASHINGTON (Reuters) – The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.
“I will be unable to invest fully” the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress.
The House of Representatives is expected to vote on Wednesday on the Obama administration’s request to raise the country’s legal debt limit to $16.394 trillion.
However, unless the lower chamber and the Senate are able to shore up enough votes to block the White House request, the debt limit will be increased by $1.2 trillion next Friday and a repeat of last year’s debt ceiling debacle will be averted.
Geithner said Treasury started suspending reinvestments in a federal pension fund known as the G-Fund — a tool Treasury has had to employ six times over the past 20 years in order to keep the country below the statutory debt limit.
The Treasury Department has already tapped another seldom-used fund in order to allow the government to continue borrowing without running afoul of the country’s laws.
(Reporting By Rachelle Younglai; Editing by Chizu Nomiyama and James Dalgleish)