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Budget talks: This is getting nasty

Discussion in 'Sports and News' started by printdust, Jul 13, 2011.

  1. CarltonBanks

    CarltonBanks New Member

    No problem...you usually aren't like that and I figured you were just busting balls. I didn't take your last post as an insult...I thought it was funny. And Star, you are not hurting my feelings, you are belittling me as a person because my political beliefs differ from yours. If you are cool with that, great. I don't have a problem with your posts usually...even when the language gets colorful. But, come on...I asked a few times for people to chill out with that. If you choose not to that's entirely on you. I do not call it the Democrat Party...it is the Democratic Party. Not a big deal.

    I guess I could start calling liberals a bunch of ponytail-wearing, hybrid-driving douchebags with hemp pants and bitch-tits...but that would be out of line :)
     
  2. YankeeFan

    YankeeFan Well-Known Member

    We just had two weeks of nearly constant media attention to it. If you don't think people are better educated about it, you're foolish.

    And, just having the debate benefits the GOP.
     
  3. BrianGriffin

    BrianGriffin Active Member

    They'll rise up and say "You know, that Obama ain't such a bad guy...for a communist Kenyan.
     
  4. BrianGriffin

    BrianGriffin Active Member

    What a lot of people are aware of is that they spent the last two weeks talking about it on TV. Many are aware because they are sitting at home, unemployed and have nothing else to do.

    They sat around saying "how 'bout doing something to get the job market going..."
     
  5. BrianGriffin

    BrianGriffin Active Member

    What you describe sounds more deflationary that inflationary.

    If there is an unwillingness to spend or invest, it pushes prices down. If you add to that, higher commodity prices -- the gallon of milk costs more and so does the gallon of gas -- than spending on everything else goes down, output goes down, jobs go down and you deflate more.

    Even if you increase commodity prices more, you'll still deflate because of the unwillingness to spend and the problems that creates. If you print more money to counter the deflation, it'll make little difference because people will still be afraid to spend it.
     
  6. Starman

    Starman Well-Known Member

    Forget that shit -- no money.

    We'll let "the magic of the marketplace" take care of that.
     
  7. deskslave

    deskslave Active Member

    [​IMG]
     
  8. Michael_ Gee

    Michael_ Gee Well-Known Member

    We have a bipartisan agreement to take the biggest problem we have as far as most people are concerned -- unemployment and overall worker income -- and make it worse. Ragu and I are as far apart on economics as it gets, but we both offer the same forecast. The political consequences of that, longer term than the next election, are enormous and unpredictable. It is entirely possible the Democratic party breaks apart. The doorbell ringers and envelope stuffers who worked for Obama in '08 will be gone fishin' in 2012. The old people who have become the core of the GOP may well be angry, poorer, Democratic voters in 2014 and 2016. Where the big money boys go during turmoil is anybody's guess.
    The danger of what just went down is that sooner or later, probably sooner, there is going to be a President who reacts to blackmail by the opposition in Congress by running right over it through unconstitutional means, depending on his party's support in the Senate and public opinion to sustain him. That is the incentive our system has created for itself, making quasi-dictatorship look like a President's only profitable course of action.
     
  9. Football_Bat

    Football_Bat Well-Known Member

    Good fucking God. Step away from the ledge, people.

    One thing this vote will do is separate the Tea Party from its convictions ... not once, but twice, as the Friday vote so proved. Throwing in enough SHINY OBJECTS like an impossible balanced-budget amendment and a beatification of St. Sarah of Caribou won't be enough.

    Removing this question off the table for the 2012 elections is a huge win for the Democrats. Discount the value of demobilizing the howler monkeys at your own peril.

    I don't know that Boehner can herd enough cats to pass this shitburger anyway. And it's a shitburger for both sides.
     
  10. suburbia

    suburbia Active Member

    True, although both Republican and Democratic Presidents have added to that debt. They've just done it in different ways.
     
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    What I posted should bode for low inflation. You probably learned in macroeconomics 101 that there is an inverse relationship between economic growth and inflation.

    Unfortunately, stagflation defies that relationship, as we learned all too well in the 1970s. And the biggest problem our country has -- in my opinion -- has been our Federal Reserve, which embarks on "monetary policy" that has been detrimental to all of us. Alan Greenspan, throughout the 1990s and most of the 2000s, used a policy of artificially low rates to overheat the economy, to the benefits of Bill Clinton and George Bush. It created financial bubbles that got increasingly worse, from a tech/internet bubble to a housing bubble. The last one created the collapse in 2008.

    In the wake, Ben Bernanke has done much of the same. Their playbook during a strong economy was to keep monetary policy loose, which is what creates those bubbles. Their playbook during the recession and weak economic growth was to make their monetary policy even looser. They added trillions of dollars of troubled assets to their balance sheet, put interest rates permanently near zero, and embarked on two rounds of quantatative easing, the last of which had them buying back their own debt, thereby putting us in even more debt. The practical effect of this is that they have increased our money supply, and devalued the dollar. It's the same as dealing with your problems by running a printing press 24/7 and printing more and more money. That devalues the value of our money. And that by definition is inflation.

    It's why, as you say, the cost of everything -- your milk, your produce, your gas -- has been going up. It's inflation. In a weak economic environment, the price of oil should drop, because demand should be off. But gold is up near $100 a barrel.

    What we are seeing is stagflation, whether they create an honest CPI number that measures it. They won't. But they are continuing to debase our currency, as are other central banks.

    That is why I started that thread on gold. It is the ultimate hedge against central banks debasing their fiat currencies, and I saw that happening and not coincidentally saw the price of gold rising the last two years. It has sold off a bit today, and it is at $1620 to $1625 an ounce. When I started that thread two years ago, it was just breaking through $1000 an ounce. When I first bought some, after TARP was announced (it wasn't hard to see where we were ultimately headed at that time), I got it at $734 an ounce. That was 2008.
     
  12. The Big Ragu

    The Big Ragu Moderator Staff Member

    FYI, another bad number just released. The ISM number, a manufacturing gauge, was predicted to remain about the same. It dropped significantly, meaning signs of even less economic activity. Stocks were slightly up. Now dropping off a cliff. What I said yesterday. Stocks will trade on economic news and earnings, not on made up D.C. drama. I think we are heading for a recession, if we are not already in one and waiting for the numbers that confirm it.
     
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