[tomder55]

what do you consider a reasonable "structured " debt ? Don't tell me you think 100% + of GDP is reasonable . It's government spending that is sapping the wealth that builds the economy .

[paraclete]

You are right Tom we think 10% might be reasonable but we don't think you have any hope of achieving 100% let alone 10%. There are mechanisms that might let you off the hook, rampant inflation, or chinese style growth in your economy but restricting yourselves to having better than a balanced budget that would have a catastrophic effect, you may as well do away with the house, what would they have to do but repeal all those expensive programs

[talaniman]

I think blaming the debt for people not having well paying jobs, ergo poor wealth, is erroneous since the stock market and a small number of people are doing fantastic. More accurate I think is the relationship between the private industry and wages and business practice that are pushing more people into the arms of the social safety net.

In the world of rising costs for goods and services and severely restricted monetary circulation debt is the only way to generate demand, and that's only barely good enough to cover necessity. Believe it or not though a dollar investment in the safety net return 1.25 dollars, but a dollar of tax cut just adds to the debt in both short and long term revenues and economic activities.

To put a figure on it in GDP on a yearly basis 25% is manageable. Misleading is total debt to yearly revenue. What skews the numbers greatly on a global scale is the different regional and local standards that leaves trillions upon trillions of dollars out of circulation, and that's a recipe for the growing poverty and stagnant wages we see EVERYWHERE, except in the very narrow few of the population.

I have long held that circulation is the issue. One dollar that passes among many is more conducive to wealth than billions held onto by one person. You want more wealth, you have to have more circulation. Even Laffer curve shows that although he only deals with taxation. It's so narrowly and poor defined its irrelevant. Yes the relationship between taxation and revenues is irrelevant. But that's the supply side theory. The more consumers the greater the revenues, and the less you depend on the social safety net. (Taxpayer support)

That's the Walmart model using good wages as a baseline but of course you will never acknowledge that fiscal relationship, wonder why? That's where your deficits are. Imagine Walmart workers as consumers and do the math. If you can't, then that's a very big red flag you cannot see the real problem.

[paraclete]

deficit stimilus to the economy is a false premise which creates the situation you now have, as are fighting wars without any return. Your snout in the trough military is a large part of the problem as are your free trade policies. You lowered taxation to the point where it doesn't support your budget as if the economy were some sort of magic pudding. What you need is a securities tax including a tax on bank deposits so that there is incentive for all that parked money to move. Lifting real interest rates will lift expectations, money has fled your economy because there is no return and you need to abandon QE it is creating a false market that can only collapse

[talaniman]

Deficit stimulus is an emergency. A sign of worsening economic condition that's directly tied to unemployment. Cutting it without a much looser job market is economic suicide. Withdrawing the QE artificial as it is would destroy more fragile global economies, because most bonds are worthless.

[paraclete]

Sorry tal my economic studies don't support your argument, you have passed the point of economic suicide because of deficit stimilus. It hasn't worked. governments do not create employment, they facilitate it. What world do you you in where you exercise control over global economies? QE is destroying the value of other currencies, causing the US dollar to be artificially lowered this would benefit you if you actually exported something by increasing your earnings, QE is a stupid idea, printing money always was. The only way out for you is the same path other banana republics have taken. repudiate the national debt, write it all off and start again, but before you do stand all those trough gouging politicians against the wall

[speechlesstx]

Tal, apparently you've never worked with someone who doesn't deserve their pay. I'm sorry, but I am not going to pay someone 20 bucks an hour that gives me 7 bucks an hour in output. That's not only stupid but a recipe for killing your business. What the hell do you not understand about that?

[talaniman]

Why is QE hurting you if you are so much better at economics than we are? You stumble badly when you say the US has no effect on other economies while you say in the same breath our economy hurts you. Go get your own and show us how your economic skills are so much better than a banana republic.

What world do you you in where you exercise control over global economies? QE is destroying the value of other currencies, causing the US dollar to be artificially lowered

Do your own thing and be done with our banana republic. See I just solved all YOUR problems.

[paraclete]

QE is hurting us and other exporting economies because it makes us uncompetative when most international contracts are priced with reference to a US dollar exchange rate, but the rediculous part is you don't benefit because you have no export industries except those for which the exchange rate doesn't matter. Your manufacturing is now done offshore

We would like to be done with your banana republic but you have ingratiated yourselves to the extent that you destory our industries to protect your own. The auto industry is a case in point. Your auto companies would rather manufacture in South Korea and to do so they destroy established subsidiaries around the world

we came to recognise the banana republic syndrome thirty years ago and restructured our economy, this is why we are in better economic shape than you are, we had the foresight to see that deficits were undesirable and not sustainable long term and actually paid off our debt before the GFC hit.When you have paid off your debt you can afford lower taxes. The last generation took the pain, not the current generation and this makes us an economic dynamo, the 12th largest economy in the world dispite our small population. Do you think we might have something to teach you about economics?

It's alright Tal keep playing ostrich while all your eggs are stolen

[tomder55]

QE is beggar thy neighbor . Clete is right on that count. We complained for years about the Chinese doing the same type of under valuation.

[Tuttyd]

Tal, apparently you've never worked with someone who doesn't deserve their pay.

A lot of people find it difficult to justify their pay. Some more than others. CEO's would find is pretty much impossible.

[speechlesstx]

I'm sure some can't. It's pretty simple though, for a business to succeed it has to make a profit and it's hard to make a profit if employees can't justify their expense. It's not magic, it doesn't work like the government.

[talaniman]

The boss can and does fire people all the time. If the boss can't make a profit, it's his fault not the workers who follow his direction. Deserves got nothing to do with it.

[tomder55]

of course . The solution for areas where too much government is the core reason for their poverty is adding even more government. I'll reserve judgment until I see the details . If he mimics the Jack Kemp enterprise zone solutions there is a chance that this may work. I suspect it will be more like Solyndra unfortunately .

From the Slimes......

In a ceremony in the East Room of the White House, Mr. Obama said the five areas would become “Promise Zones,” where federal agencies will cut through red tape in an effort to give struggling residents a chance at better lives.......

White House officials said the Promise Zones initiative would not provide new money, rather it would be aimed at providing the local governments and agencies “aid in cutting through red tape to get access to existing resources.”

http://www.nytimes.com/2014/01/10/us...=politics&_r=0

Typical statist mindset. All they really have to do is eliminate the red tape for everyone ,and then there would be no need for this new initiative ,with all the bureaucratic effort .....saving the taxpayer even more money and reducing the size of the government .

[talaniman]

Chemical Spill a Blow to W.Va Capital's Economy - ABC News

"It's like a ghost town," Tammy Krepshaw said. "I feel really bad for all my neighbors. It's sad."The person she doesn't feel bad for is Freedom Industries President Gary Southern, who told reporters the day before that he was having a long day and quickly wrapped up a news conference on the chemical spill so he could fly out of the area.
"People want answers. They deserve answers," Krepshaw said.

Judge OKs $4B BP oil spill criminal settlement

As part of the agreement, BP agreed to pay $4 billion in fines — the largest criminal resolution in U.S. history — and pleaded guilty to 14 counts of criminal acts ranging from obstruction of Congress to felony manslaughter.

[tomder55]

last decade we had a truck full of chemicals lose control and drive off an overpass. Shut down most of the main arteries in 3 county as a result. Didn't once hear anyone calling for a ban on the production of the chemical.

[excon]

Hello again,

Judge OKs $4B BP oil spill criminal settlement

pleaded guilty to 14 counts of criminal acts ranging from obstruction of Congress to felony manslaughter.

If corporations are people, how come nobody is going to jail? I know what would happen if you or I were found guilty of manslaughter.

excon

[speechlesstx]

The boss can and does fire people all the time. If the boss can't make a profit, it's his fault not the workers who follow his direction. Deserves got nothing

There is a reason it's called earnings.

[talaniman]

And your point?

[speechlesstx]

Look it up