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Posts Tagged ‘Debt

The Truth – MacLeod Cartoon

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Debt Ceiling – the Media Narrative

Want the truth? Well, there it is.

–Joe

Ron Paul on the Deficit

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Anyone interested in another point of view might find this article of interest:

By Pete Kasperowicz – 07/19/11 11:20 AM ET

Rep. Ron Paul (R-Texas) on Tuesday predicted that the U.S. would default on its debt.

“When a country is indebted to the degree that we’re indebted, the country always defaults,” the 2012 GOP presidential candidate said on the House floor. “We will default because the debt is unsustainable.”

Paul predicted that the U.S. government would dodge the best solution, which is to impose real spending cuts.

“The reason we don’t cut spending is, one side loves entitlements and one side loves war,” he said.

But he warned against the temptation of simply continuing to send out government checks backed with more borrowed money. He said choosing this course would mean default would come in the form of significant inflation and a further erosion of the dollar.

“If we don’t understand this, this default will not be because we don’t send out the checks,” Paul said. “We will send out the checks. It will be defaulted on because people will get their money back, or they will get their Social Security checks, and it won’t buy anything.”

He warned this is a “much, much worse” solution.

Paul was one of several Republicans who spoke Tuesday morning on the House floor in anticipation of the GOP’s “Cut, Cap and Balance”
bill. Rep. Wally Herger (R-Calif.) was one who spoke in favor of the bill, and said higher spending under the Obama administration was a proven failure.

“The tragic reality is that the president’s big spending policies only made things worse,” Herger said. “Now, with the national debt at crisis levels, he is standing in the way of common sense solutions, offering only lectures, not leadership.

“As a matter of conscience, this Congress cannot support allowing President Obama to continue to steer America’s debt past a point of no return,” he added.

Rep. Virginia Foxx (R-N.C.) said Democrats have no plan for handling the debt crisis, citing the Senate’s rejection earlier this year of the Obama administration’s proposed 2012 budget.

“There is no leadership on the part of the Democrats,” she said.

Rep. Mike Quigley (Ill.) was one of the few Democrats who spoke on the debt ceiling Tuesday morning. He argued that Republicans were using the myth of former President Reagan to justify efforts to tie the debt-ceiling increase to spending cuts.

Quigley said that if Reagan could see the current debate, “he’d see his most dedicated followers using his name as justification for saying no to honoring our debts. He’d see his legacy used to play chicken with the world’s greatest economic engine.”

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–Joe

Written by Joe Blow

July 20, 2011 at 9:32 pm

Who Really Rules the Word (World)

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What got Greek in trouble is already a plague on America.

Where we are all heading and why.

Is it too late to fix?

Lost opportunity:

“Instead of forcing the banks to join in the inevitable pain that Greek citizens are going to bear, the government has instead protected the banks from their own lending folly. As this crisis spreads to other countries, at some point one of these governments will seek the Icelandic solution, or the EU and the IMF will run out of lending capacity, and a sovereign default will occur. We will be right back to where we were in 2008 during the height of the credit crisis: no one will be lending to anyone else. Once again, as occurred in the 1930s, you will hear people lament “no one has any money”, because truly no one will. The average investor’s stock and bond holdings will be decimated, individuals will be selling hard assets to survive, and credit will be impossible to find (it is already in the US).”

Opa! Greek Government Announces Yet Another Bailout, But Who is Really Getting Bailed Out?

Just how many times is Greece going to announce yet another financial bailout? Even the markets are getting jaded by this never-ending game of brinksmanship. What would otherwise be greeted as good news is this time treated with skepticism, and rightly so. If you remember when this financial crisis first erupted months ago, Greece needed about $25 billion to stave off bankruptcy. It was also felt that the EU members would foot this bill alone, since Greece would never endure the shame of asking the IMF to participate in the bailout.

This week’s deal is announced as a three year loan program for €110 billion, or $174 billion, with the IMF joining in the loan to Greece. My how the debt has grown, and no one is saying whether this number well and truly incorporates the hidden debt that Greece took on with the connivance of Goldman Sachs in order to avoid EU restrictions. Whatever it is in the way of belt-tightening that is going to be demanded by the IMF, it probably shrivels in comparison to what Greece’s European partners are requiring.

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Written by Joe Blow

May 3, 2010 at 10:51 pm

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