madshark

Could.you left.wing loons who.support President Pookie and his.policies help me understand something. Pookie has been President for five years. He has been successful in passing Obamacare, HARP, TARP, Stimulus I, Stimulus II, Quantitative easing I , II, III, IV and V, all of which are supposed to fix the economy. With real unemployment at 37.2%, 92,000,000 Americans out of the labor pool, the work forcebparticipation rate lower.than it has ever been, the misery index higher than in 40 years. The only positive indicater is an artificially propped up.stock market. Five years in, Pookie owns this economy.

Please.tell me how, in the face of all this truth that his policies are a.failure, you can continue to support him?

Loki Loc: Georgia

Can you spell "myopic morons?"

JFlorio Loc: Seminole Florida

Your comments are right on. I can't wait to see what the liberal loons on this site have to say. Probably Rush Limbaugh and Fox News fault.

MarvinSussman

Presidents have no direct effect on the economy and certainly not on the stock market. Once in a blue moon, they appoint a
Fed chairman, who can do a little.

Mostly, Presidents can more or less push regulators to regulate or deregulate. Thus, Bush pushed for deregulation and probably helped to bring on the Bush Meltdown. Obama signed a regulatory law that may ease the next meltdown.

But that’s it. It’s never the President’s economy.

Oh, yes. I forgot. He can start a war. Or he can try to get out of one. That's the difference between Bush and Obamal.
It's Congress that taxes and spends and is able to push or restrain the economy. Read the Constitution.

When Reagan was President, he did not care about debt - Reagan tripled the national debt and they responded by making Reagan their hero.

When Clinton took office, all they wanted to talk about was debt, saying it was because Clinton was a big spender. Clinton eventually balanced the budget and even made a trillion dollar surplus, but conservatives attacked him then, too - saying that if the budget was balanced and we were finally paying off the debt, then somehow it meant that the American taxpayer had been 'over charged' and were due a 'refund' which meant massively cutting taxes.

When Bush was elected, he frittered away the entire surplus with tax cuts and an unnecessary war and doubled the national debt. Cheney even said "Reagan proved deficits don't matter" when his party offered to pass the largest deficit in history. Most Republicans said nothing.

Now that Obama is president, they are once again making noise about the debt, shutting down the government and threatening default - even though the deficit is falling at its fastest rate in 50 years!

You want a good economy? Try this:

Q1: For taxpayers, is our “national debt” really a burden that must be repaid?
A1: No. For taxpayers, it is not a real debt. It’s a “Debt In Name Only”, a “DINO”-*

THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS. It is not the taxpayers but rather the buyers of newly-issued bonds who, in a virtual rollover, pay for redemption of mature bonds. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could increase the demand for bonds by buying a large slice of the DINO in the market.

THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID. Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. To supply enough bonds, the ONLY risk-free securities used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy! Our world needs the DINO!

Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The Treasury has a “national debt” and the private sector has a “national asset”! The bad “Debt Clock” is also the good “Asset Clock”. Since, with our trade deficit, we export money, deficit spending is our economy’s SOLE source of savings! In fact, if large budget deficits don’t soon replace our vanishing cash, deflation will freeze our economy solid. Who would spend a dollar today if it would buy more tomorrow?

Our economy is suffering from acute anemia. Our (DINO + total bank deposits) / GDP ratio is less than half of China’s figure. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation.

Inequality worsens the anemia. Most of the paltry money supply circulates among the Rich who corrupt Congress for estate laws to stay rich to buy Congress for laws that enrich the Rich to buy Congress…..etc.
Wealth is power and inherited wealth is inherited power: aristocracy, always the enemy of meritocracy!

Q2: Won’t the annual debt interest expense explode the budget?
A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is NO INFLATIONARY EFFECT. About 80% of the interest is added to the DINO, which is good. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense.

Q3: Could savers make a “run” on US Treasury bonds?
A3: 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.

Q4. Could savers stop buying US Treasury bonds?
A4. Yes, indeed! SAVERS WILL ALWAYS WANT THE SAFEST BONDS for trade collateral, insurance, pensions, bank reserves, etc. Now, 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 bonds could become safer than ours and we could then lose our bond-buyers. And that could happen if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, creaking railroads, leaking sewers, etc. Money can be printed, but infrastructure has to be built with real resources over time, which has no substitute.

Q5: Won’t we need higher income tax rates to pay for infrastructure?
A5: Congress NEVER asks the Treasury if can pass a spending bill. In effect, Congress writes a check that Treasury NEVER bounces. To finance a deficit, the Treasury auctions new bonds created out of thin air with keystrokes.

The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can
finance both the DINO’s annual interest payment and our much-needed infrastructure. Every day, you fill your sink with water AND you prevent it from overflowing. Why can’t Congress fill our economy with money by building infrastructure AND prevent harmful inflation? China builds 24/7 without harmful inflation. Why can’t we do that?

While a bank holding too many bad loans can certainly hold too many maturing CDs, our non-lending Treasury cannot hold too many maturing bonds unless its deficit spending causes 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, regulate the banks before stopping work on infrastructure projects!

Q6: How much should Congress tax and spend?
A6: Ideally, Congress should tax just enough to prevent harmful inflation and should spend almost enough to cause full employment (and therefore harmful inflation). Result: prosperity with low inflation.

Instead, bribed by Wall Street, Congress taxes as little as possible, enriching the rich, and spends as little as possible, impoverishing the rest of us by restricting deficits / savings. Just as quacks killed George Washington by bleeding his “bad blood”, Congress is destroying our younger generations by reducing (possibly to zero!) our annual budget deficits / private sector savings increase / consumer demand. And, by bribing Congress to pass austerity budgets, the Wall Street charlatans are deliberately nursing a huge army of unemployed labor to suppress the wages and working conditions of the shrinking middle class.

Q7: How should one vote?
A7: Vote only for someone who NEVER EVER worries about the DINO and who ALWAYS worries about people looking for work and drawing benefits instead of building infrastructure for their grandchildren.

Q8: “I have to balance my budget. Why doesn’t Congress balance its budget?”
A8: If you could legally print money in your attic, why would you balance your budget? Congress only needs to balance full employment against harmful inflation. Why is something so simple so hard to see?

To stay ahead of China, please help me convince voters that deficit spending on infrastructure is limited ONLY by harmful inflation (nowhere in sight). Please copy and distribute this message where possible.

bahmer

Oh great someone revived MarvinSussman again. I thought he had gone to a different web or something. A house made of cards will surely fall. The fall of this house of cards will be truly great and many will perish when it collapses.

pana Loc: are we there yet?

“By remaining behind the scenes, they [the Rothschilds] were able to avoid the brunt of public anger which was directed, instead, at the political figures which they largely controlled. This is a technique which has been practiced by financial manipulators ever since, and it is fully utilized by those who operate the Federal Reserve System today.”

“The reason it is difficult is that we have been conditioned to laugh at conspiracy theories, and few people will risk public ridicule by advocating them. On the other hand, to endorse the accidental view is absurd. Almost all of history is an unbroken trail of one conspiracy after another. Conspiracies are the norm, not the exception.”

- G. Edward Griffin, Federal Reserve Historian, The Creature from Jekyll Island

Knock, knock..... Whos there? IRS.
http://www.zerohedge.com/news/2013-12-12/imf-wants-you-pay-71-income-tax

bmac32 Loc: West Florida

Nice mixture of trues, half truths and out right lies but like a good little democrat we wrap then up and it's true.

madshark

What do we do if China decides to call in the debt we owe them? I guess we could just give them Alaska and Hawaii. That was the longest tome of idiotic drivel I have read in a long time. How long did it take you to cut and paste all that Keynsian lunacy? Damn, you delusional leftists can contort yourselves into some amazingly stupid positions.

pana Loc: are we there yet?

People who don't see that the currency war is in full swing and we are losing have their heads stuck in a dark nether region.
http://www.caseyresearch.com/cdd/demise-petrodollar

http://www.mineweb.com/mineweb/content/en/mineweb-africa?oid=226026&sn=Detail

Now that they have moved both oil and gold away from the USD global reserve currency the days of US hegemony are dwindling.

madshark

"Presidents have no direct effect on the economy and certainly not on the stock market."

That takes the award for the stupidest thing I have read today. From this moment forward, anything you say is irrelevant. If your mental faculties are so impaired as to believe that statement, none of the rest of what you have cut and pasted can have any credibility.

pana Loc: are we there yet?

Ive learned that when I get a hanker'in to write an idiotic post that I should leave the most ridiculous part till the end. I didn't get past half of the first sentence in that particular post. You are correct sir.

MarvinSussman

Half of all US bonds are held by foreigners. Chinese holding US bonds and wishing to have a mature bond redeemed also have a local address and/or a phone number that can be called to arrange the redemption. Such a transaction occurs almost daily in China as it does here and in other countries. There is nothing unusual about it. It is equivalent to a money transfer from a savings account to a checking account.

So what can a foreigner do with US cash? He can keep the cash at bank interest or bid at an auction for another bond at a higher interest, a bond rollover.

Or he can buy commodities anywhere outside the US where US dollars are accepted, which is everywhere.The vendor will then have the dollars and will have the same option.

Or he can buy US merchandise or property from willing US sellers, just like any American.

If he wants to sell a bond is not mature, he will have to find a willing buyer and negotiate a price. There are "primary" dealers, like Goldman Sachs and others with offices in major cities. Such transactions are done every day.

What's the big deal?

Here is the source of all the "drivel". If you can understand simple English words, try to get an education from these works::

Frank N. Newman, former Deputy Secretary of the US Treasury, recipient of the Treasury’s annual “Alexander Hamilton” award, author of “Freedom from National Debt” (Two Harbors Press);

Francis X. Cavanaugh, US Treasury economist for over 30 years, author of “The Truth about the National Debt”: Five Myths and One Reality” (Harvard Business School Press);

Warren Mosler, economist, author of “Seven Deadly Frauds of Economic Policy” (Oxford U. Press);

Marc Blyth, Brown U. professor of political economics and author of “Austerity” (Oxford U. Press);

Dr. Stephanie Kelton, Chair of the UMKC Economics Department, at NewEconomicPerspectives.org.

MarvinSussman

You didn't have the courage to list a "lie" because you could not. You are a coward.

MarvinSussman

You probably don't know the meaning of the word "direct". Of course, he can communicate and try to convince others but they are the direct actors. All spending bills come from Congress, not from the White House. Read the Constitution!

Floyd Brown Loc: Milwaukee WI

A good insight in to what is going on.