And there is a wide dispersion between intake and outflow
Domestic credit markets are contracting for the first time in history
Looks M1 multiplier has hit a brick wall...
Posted on 03/28/2010 5:26:58 AM PDT by HangnJudge
In an article in the Atlantic entitled “My Inflation Nightmare,” Michael Kinsley worries about the future of the economy. He fears that inflation, perhaps hyperinflation, is a likely next stage in the economic crisis. His fears contradict the respected liberal economists Paul Krugman and Larry Summers. They argue that deflation is the likely outcome...
...Mr. Kinsley should realize that it was these and similar experts that got us into this mess. Neither of these experts ever saw it coming, despite their expertise and mathematical Keynesian models. One is an ideologue and the other an employee of the administration. Does Mr. Kinsley believe they could publicly speak out against inflation, even if they believed it to be a certainty?
Kinsley’s intuitive conclusion is grounded in “the realm of psychology.” If, by that, he means human behavior and motives, he is on sounder ground than most so-called economists. Proper economics always has been the study of human action. Abstract mathematical models, introduced in the “Keynesian revolution,” banished human and political motivations from consideration. Economics was then reduced to a sterile black-box contraption, at least in the minds of “sophisticated” Keynesians.
The key insight and worry in Kinsley’s article is that “no one in a position to act has proposed a realistic way out of this debt.” Is it possible no one understands the problem? Perhaps they have been too busy to deal with it. He muses about this issue in a way that suggests he may know the answer but not want to reveal it. Quite simply, the issue is ignored because there is no politically palatable solution! It is impossible for the U.S. government to honor its obligations.
(Excerpt) Read more at pajamasmedia.com ...
And there is a wide dispersion between intake and outflow
Domestic credit markets are contracting for the first time in history
Looks M1 multiplier has hit a brick wall...
Question about the Federal Government Expenditures vs Federal Government Receipts —
Around about 2000 it clearly shows a surplus. I know Clinton talked about it, and the Dems brag about it, but I was under the impression that we never had anything more than a “projected” surplus. I didn’t think we had one in actuality.
Am I wrong? Did the federal government “show a profit” for a few years?
If was a phony statistic
The true cost of operation was
pushed forward into the following years
There has not been a true operating surplus in decades
especially taking into account the unfunded mandates of Medicare
Simple math...we’re PRINTING MONEY. We have to have inflation. The real questions are the following:
1) With people screaming to “DO SOMETHING”, will we get price controls - and, if so, just how bad will the resultant shortages become?
2) Will our government EVER commit to again growing the economy, or will we have to watch our wealth disappear into nothing while we save the world from global warming, save the Delta Smelt (in California), and God knows what else?
3) What taxes will increase, in order to pay for our new society - getting a VAT is assured (the starting rate is the only question); European-style gas taxes, or road pricing (tolling by the mile) is almost assured.
4) Will the people wake up and realize that the people in power literally HATE the country (as we’ve known it), and take WHATEVER (legal) action is necessary to rid themselves of this people? Right now, most people still think that our leaders have good intentions, but are simply misguided. Recognizing evil in others, when you are an inherently good person is difficult to do, but necessary for survival. Americans have stepped up to this challenge in the past...but it’s been easier to recognize and react when the evil is being done by foreigners.
Thanks. It weakens the chart to show a surplus when we didn’t have one.
bttt
as i recall when the government started climbing out of debt then the politicians said debt didnt matter...started spending again....9-11 was just a good excuse...and the failure of the stock market was just another good excuse to spend spend spend.all the spending is not fixing anything but your politicians bank account...where are the jobs??? fixing mortgages, cash for clunkers, extended benifits, so called green jobs...none of these bandaids are fixing the problem...are you better off today than before Obama took office???? I know ...its Bush’s fault. But he was the one asking a republican congress and at the end a democrat congress to be more frugal..just throwing money around never fixes anything...and they aren’t even throwing it in the right direction...pro bussiness, pro productivity..lower taxes...thats all that will help..we are doing the opposite....sory for rant.
They see the “need” to get a VAT tax passed before this fall while they still have a strangle hold on the population. Added to their list is, Amnesty, Crap & Tax, Fairness Doctrine, and several other power related issues. (Abolishing the Electoral College included.)
We can expect them to use the same tactics while they diffuse the public with the MSM’s help, during the Summer months.
In short, it's going to be a miserable Summer to say the least!
1. Redistribution of wealth is not JUSTICE, it is THEFT. Contrary to liberal thought, forced redistribution of wealth is immoral. God did not give the Ten Commandments to Moses that read, “Thou shall not steal unless Congress passes a different law.” True compassion is voluntary—from the heart—and for the recipient it is challenging, personal, and spiritual. In other words, the down-and-out need more than money; they need encouragement and spiritual food.
It is generally forgotten that
Taxation is a form of coercive taking
If you do not pay the tax
You will be put in jail or otherwise punished
True Charity, Giving of Self
Is a Voluntary Act of Kindness and Generosity
Taxation is none of these things
And Government does not Care, Love, or Act in Kindness
When government redistributes wealth
it even hurts the people it is trying to help!
This is not necessarily intuitive, but observable.
The welfare mess is a classic example
of failed government intervention.
We have 50 years of experience which prove
that oppressive utopian ideas of “compassion”
only imprison the welfare class into perpetual poverty.
Even they would be suicidal to seek a tax increase this summer. The problem Dems have is that they need to build up a super majority and eliminate the opposition totally before the financial chickens come home to roost.
There is an historical fact that when ever Rome increased it’s taxes to pay for increased living comforts for it’s ruling class, the people suffered and were forced to lower their own living standard. Rebellion soon followed.
The larger and more greedy Rome became, the sooner it was defeated from within it’s own borders.
In other words, the larger the Democrats make this Government, the more costly and inefficient it will become, the more corruption and waste it will create and the sooner it will collapse in on itself.
If we cannot stop this, we need to find a way to protect ourselves and our wealth until they spend themselves into oblivion. IT WILL HAPPEN.
In closing, a quote from Ben Franklin; The most dangerous thing that any Nation can do is, make their poor comfortable in their poverty!
One answer, is to conserve creativity
During the coming collapse...
We can starve the monkeys of the value they steal from us. But this requires a deep understanding of where that value comes from in the first place, so that we can turn off the valve. Shallow efforts to resist by refusing to pay your income taxes will only get you arrested, or worse.
Nor do these solutions involve violence, "grab your gun" or any other kind of "let's go git 'em, boys!" kind of foolishness.
Doing that would only get you killed. And the responsible parties would rejoice at your sacrifice. Because that is exactly what they want you to do. Get killed, so that you, and your ideas, are out of the way.
Don't give them the satisfaction. Besides, your brothers are going to need you later.
There is a much, MUCH, better way. This way.
That is why they are planning on passing Amnesty the first thing they do after the Easter break.
You can also bet they will make them voters immediately, give them unlimited health care, housing, food stamps and jobs. (union jobs.)
- Fix the payroll tax rate. This is a "pick-a-number" exercise so I will open the bidding at 10% ( a nice biblical tithing number). This payroll tax is all inclusive, Social Security, Medicare, Obamacare whatever.
- Limit annual expenditures on the programs to "taxes raised."
Voila! The unfunded liabilities that generate the scary numbers have vanished. And so has the "free lunch." The pay-as-you-go, (aka the Ponzi scheme) has been revealed.
Now, let the voters decide.
What is going to happen, unfortunately, is
Medicare will Collapse
Social Security will Collapse
Medicaid will Collapse
Any Worth, other than
Property, Food, Will to Keep Them
and more important,
Information and Creativity
Will cease to exist
My post was a plan not a prediction.
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