Liberty Tree

The Democrats got much of what they wanted and the Republicans got next to nothing. Spending will increase and more taxes will follow. Of course, the taxes will be called fees and anything else except what they are. Any spending "cuts", which are just decreases in proposed increases, are scheduled down the road and will never happen just like they did away with the sequester. The debt will continue to explode, except for the temporary lull we are experiencing. Even if the GOP wins the Senate and keeps the House do not expect anything to change. They will just run another RINO in 2016. We are standing on an economic house of cards and the wind is blowing harder. It will fall on the road our nation is on and that is exactly what Obama and his Marxist minions want. Do not believe the spin the GOP Congressional leaders try to put on it. This is a bad deal and was done because the GOP leaders are afraid to take a stand and risk another shutdown. They, like Obama and the Dems, just want to get by the 2014 e******n.

slatten49 Loc: Lake Whitney, Texas

Unbridled optimism...that is what made this country great! :thumbup: :mrgreen:

Liberty Tree

The builders of the Titanic were optimistic that it was unsinkable, but that did not save it from reality when it struck an iceberg.

Unclet Loc: Amarillo, Tx

Hang in there, one of these days the realization that you are speaking the t***h will be recognized. Unfortunately, that may be to late for our country. Like the Titanic, we think we are unsinkable. That thought, is our weakness, we feel we can overcome any problem if we just stick to our convictions and wait it out.

In the past, that was possible, but now they have figured out a way to divide this country. How like the flaw in the hull of the Titanic, this weakness in the fabric of our nation, will sink us if we continue to race toward the economic Iceberg that is on the horizon.

bmac32 Loc: West Florida

I guess that would be the better thing for the republicans to do right now as they don't have the v**es in the Senate nor hold the White House but as you said hold the House and control the Senate and things can change.

Liberty Tree

Unless there is new GOP leadership it will not change much.

MarvinSussman

Q1: Is our so-called “national debt” a serious debt, a burden that we must repay?
A1: No, It lacks both of those two essential qualities of a serious debt. It’s a “Debt In Name Only”, a “DINO” -

1. A serious debt is a burden. OUR DINO IS NOT NOW AND NEVER WILL BE A TAXPAYER’S BURDEN.

Our DINO is the total value of all issued and still maturing treasuries. By calling our DINO “unsustainable”, a h**x meant to privatize Social Security and Medicare, Wall Street con artists seeking a fortune in commissions have panicked the ignorant public, journalists, and Washington politicians. But, effectively, the taxpayers do NOT redeem mature treasuries. In a virtual rollover, it is the buyers of newly-issued treasuries who redeem the mature treasuries! In every auction, more bonds are demanded than are available from new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If necessary, the Fed could even create a demand for treasuries by buying large quantities in the open market with cost-free keystrokes. The taxpayer is NEVER burdened!

Our Treasury does not borrow money like a home-buyer undertaking a mortgage. It is a custodian of funds, like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, let’s regulate the banks before restricting spending on infrastructure.

2. A serious debt must be repaid. OUR DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

Only a budget surplus can reduce our DINO. Since dropping the gold standard in1971, we have had only four years of very modest surplus. None is now in sight. To supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., OUR DINO MUST GROW WITH OUR ECONOMY. In fact, deflation and depression will hit us hard unless big budget deficits replace our cash now flowing into China.

Q2: Could savers make a “run” on Treasury bonds?
A2: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

Q3. Could savers stop buying Treasury bonds?
A3. Sure, when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

Q4: Could savers prefer foreign sovereign bonds?
A4: Yes, indeed! So far, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US v**ers worry more about our DINO than they worry about our falling bridges, failing schools, leaking sewers, aging power grids, etc., etc., etc.

Q5: Won’t we need higher tax rates to pay for infrastructure?
A5: Taxes only counteract inflation. Congress never spends tax revenue. The IRS destroys all of its receipts, actually shredding cash payments and selling the pulp. For spending, Congress creates money out of thin air (just like your corner bank creates loans), deposits it in the Treasury, and writes checks. Then the Treasury auctions bonds to finance the deficit, which is limited only by Congress and NEVER by tax revenue. The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can and must spend freely on our DINO’s annual debt interest and on much-needed infrastructure for the future. Every day, you fill your kitchen sink AND you stop it from overflowing. Why can’t Congress fill our economy with money AND prevent inflation? Ask them!

bmac32 Loc: West Florida

Likely small changes at first, going cold turkey would be a hardship on too many at once. First we need to become oil independent and get people back to work.

slatten49 Loc: Lake Whitney, Texas

I have to admit, LibertyTree...good comeback! :thumbup:

We can still agree to disagree. :wink:

snowbear37 Loc: MA.

One major problem with this country is "politicians". All the talk about raising taxes, entitlements, etc. boils down to one thing: greed and getting v**es to maintain a lifestyle of money and power over people. That's the difference between "politicians" and "leaders". This country needs less politicians and more leaders. Just my opinion.

slatten49 Loc: Lake Whitney, Texas

That is an opinion shared by many, if not most...or all! This new budget deal, far from perfect, is a good start. Ryan & Murray may have gotten the ball rolling. :thumbup:

We shall see. :?: 8-)

Liberty Tree

A good start to where?

slatten49 Loc: Lake Whitney, Texas

Working together. :thumbup:

Liberty Tree

To what end? Working together to build a disaster is not a worthy goal.