We better stop spending what we don’t have. The public is beginning to wake up. Retail spending is dropping like a rock (like I’ve never seen).
The official estimate is still at 1.9%, but there's definitely a louder and louder "whisper" number that's way lower than that, perhaps even lower than 1%?
There’s still a few out there, I guess, who still spout Keynesianism as ‘revealed truth’ —
and the call *us* ‘bitter clingers’.....
Every bureaucrat walking out the door with his box of personal stuff is a victory for prosperity. Yeah, it’s going to be tough sledding at first, but picture a world without the insane levels of regulation and enforcement. Maybe we could even manufacture something again in this country.
OK Warren so both cutting and spending will drag down the economy.
WHAT IS THE SOLUTION?
Government spending is the “broken window” economic model. If we stop lawmakers throwing rocks, there will be no more window repair.
The Government sends out 80 million checks per month to citizens. At this point, we are borrowing 42 cents of every dollar we spend. If we cut that overnight, its akin to cutting about 11% of GDP (not to mention the ripple effect). Would have a huge impact on the economy. But....the longer we wait the worse the final shock will be.
They way they calculate GDP is a bunch of Keynesian BS.
They should take any money that government spends and divide it by 10, because that’s about the amount that would really go back into the economy that the government spends.
This is just complete HORSESHIT. These 'experts' are so engrossed in the mechanics of an impossibly corrupt and bastardized government-economic model, they fail to see their little island is becoming engrossed by a sea of debt.
It is ludicrous to think that severely decreased government spending is a wrench in the gears of the economy, ESPECIALLY for the longer term. This might be a short term effect until a saner spending practice (you know, one where you actually have real money to spend?) is finally forced into play. Government does not produce revenue! They steal it from people and corporations that earn it! Whatever they steal is siphoned off (their 'taste' and the 'taste' for their lazy ass non-working constituents) and what's left over fuels this economy. Government does EVERYTHING it can to cap the economy.
These buttwipes talk just like Junkies rationalizing about how bad it would be to go cold turkey...they cajole and say 'just enough' to keep me straight....."I can taper down..." and all that crap.
So we’ve been partying too long already, and we know there will be a big hangover. We can quit now and deal with it...or better yet let’s drink a whole bunch more because it will be too painful to deal with our current recklessness?
The Dems/socialists/commies have achieved their dream-a government so big that the country is a slave to it.I see only one effective solution.
where in the hell do they find these psuedo economists at??? Is there a clearance sale on idiocy???? The hippies are dying off, and their dream of a soviet style utopia is vanishing right before their eyes.... always remember, the last battle in a war is the most deperate, vicious and costly. The hippies are fighting their last battle...
From the Authour.
The current US GDP is propped up at a high level because we pull future spend into the current period (Debt).
We must maintain the fake higher GDP at all costs.
We must continue to pull future spend into the current period to maintain the fake GDP.
I’m calling BS. Take away the stimulants. The natural and normal GDP has to be the foundation for decisions
This assertion does not make sense. It is true that people feeding off the government trough will have to find other work. But the trail off may not be immediate and precipitous. And people doing nothing to contribute to the economy cannot be much of a drag.
No doubt that it will be a painful exercise, but perhaps not as painful as a total economic collapse caused by continued spending far beyond our means. Russia's economy was chaotic for years after the collapse of Communism. Just look at where we are headed without some painful corrections.
“Government spending will fall by some $150 billion/month as expenses cant exceed revenues.”
Well then, Mr. Mosler, that means the Government is spending $150 billion dollars a month TOO MUCH.
Bring the monthly budget down to match what comes in.
It’s so easy, a caveman can do it. (apologies to cavemen everywhere)