The latest recession in the US lasted from Q1-Q3 2001.
Posted on 12/11/2003 6:26:37 AM PST by WaterDragon
December 10, 2003 on the PBS News Hour with Jim “Who was that masked man?” Lehrer and the Redistributionist Rangers --
Pity Citygroup all ye who have compassion.. Like that sad equine which once supported the spectacularly arrogant Charles DeGaulle, this Jurassic financial enterprise is saddled with Robert Rubin – the man whose economic theories were born for the likes of the French.
He got an economics degree from Harvard, a law degree from Yale and did post-grad economics study in England, where Karl Marx wrote the Communist Manifesto.
Presently, he is the Chairman of the Executive Committee and a member of the Office of the Chairman at Citigroup, whatever that means.
(To me, it means he has bigtime political connections that can benefit the blue collar class. With his educational and work-related background, he's the epitome of the modern Democrat. He stands against the evil corporations, and on the side of the working man.)
That’s what he does, now. He used to direct the national numbers for Bubba.
Tonight, right on this PBS program, he said that the policies he and Bubba initiated created “the longest economic boom in American history.”
He said that those miraculous policies included a tax hike which brought down the deficit, thus restoring the confidence of our business community, which subsequently became engaged in growth activities that generated those wondrous years.
That cannot be left to stand without challenge. Here we go.....(Snip)
Click Here For Immediate Link to Full Article
(Excerpt) Read more at oregonmag.com ...
The good economy only lasted about four years. That to them is long? Also, it seems that the economic boom was a fake. Note the dot coms that are now bust and look at the wrongdoings that have come out since then. Enron World com etc. Also has anyone noticed that the recession started in March 2000.
Borrow and spend will stimulate the economy over the short term by flooding it with cash. Everyone understands that. So everything will temporarily improve as more money chases fewer products. But speculatiors like me also see that over the longer term this is going to have the effect of causing inflation, low confidence in the currency, lower relative buying buyer on a global basis. So how will I hedge that? I'll buy gold, hard assets such as investment grade art and antiques, residential income-generating real estate leveraged with artificially low interest rates, foreign currencies, and speculate in stocks to capture the artificial bubble that will be created (always at the ready to bail on the first sign of inflation and increasing interest rates). What I won't do is take on fixed costs for my business, hire employees, or otherwise make long-term plans that may be more beneficial for society.
If the government's books are balanced, I will more likely take a long-term view in the expectation of a stable business environment. I will expand my business, take on more employees, etc. From a societal point f view, it's probably better for me to do this.
The ideal, of course, is for government to cut spending and taxes. But given the choice between tax and spend democrats and borrow and spend neocon republicans, the tax and spend approach is probably the better at maintaining a stable economy over the long run. The borrow and spend approach may kick-start a sluggish economy, but when you look at the spending -- farm subsidies, prescription drugs, education, etc -- you see that it cannot be reversed after the economy starts humming again. So you have to assume that the deficits are going to be as long-term as the new spending. Which of course means that government will be borrowing or printing money into the future.
Republicans used to understand all this. Remember when we supported a balanced budget amendment? It seems so long ago now.
Personally, though, I prefer borrow and spend. As a speculator, it's easier to predict what will happen next and you can build greater wealth over a shorter period without losing flexibility.
Naughty, naughty! We don't like illogical ignorance on FR. Only liberals insist the recession STARTED in 2000, because they don't check the facts.
Things started going to pot about that time. What are you trying to say?
Good article ...
Greatest piece of philosophy I ever heard.
Guess I must be poor, then. I've been speculating in real estate, antiques and art, gold and soft securities for some 30 years. Thought for sure government borrowing was a bad idea. I bet against Nixon when he did it, Carter when he did it, and to a lesser Reagan when he did it (Reagan at least had a bit of fiscal restraint). Won every time. Guess I'll have to give all that money back.
Thanks....true -- it's brilliant!
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