01-02-2013 08:15 AM
Happy New Year.
Same old congress.
I think the euphoria is a little overdone but it is good to see some cash moving.
We have moved the spending cut debate back to the debt ceiling debate. That will be interesting. Republicans have given up today for the chance of getting their way with the debt ceiling.
Maybe someday stocks will trade like they used to - future price of earnings rather than what the FED is doing on a day to day basis. We need to get rid of the 'risk on, risk off' attitude. If you look at the actual tax revenue changes versus the total deficit, it is an absolute joke. It is about 5% to 6% of the debt problem. It is amazing it gets as much press as it does.
We need growth. Plain and simple. We won't tax our way out. We won't cut our way out. The only hope is to GROW our way out.
Nothing really has changed. It is all about growth.
01-02-2013 09:05 AM - edited 01-02-2013 09:06 AM
hopefully they will realize that thru Agriculture vast sums of 'new money' can be created to grow the economy... I know personally that finally making 'good' money the last couple of years I am glad to support the economy by buying new machinery, cars, pickups, etc. and fixing up buildings and homes long neglected by the tight income years.... don't mean to put a number on it but.. this amounts to Hundreds of thousands of dolllars both from myself but also from my landlords! and they say trickle down doesn't work I call BS
01-02-2013 09:12 AM
Scott; not to knock down the theory that growth is the answer but I often wonder just how growth can continue forever?
Is there not eventually a brick wall to growth?
When have we all got enough?
When do other countries run out of cash to pay for extra growth?
Just some rambling thoughts about what the future is to constant growth or if maybe there has to be another way?
01-02-2013 09:17 AM
Well, we are not really growing right now anyway...2% GDP is very poor for the U.S. But good question about growth. The realimportant thing about growth is population growth. Tha is how we keep moving. When that stalls we all really stall.
01-02-2013 09:27 AM
I agree Canuck. Growth is the outcome of demand and meeting those demands using fundamentally sound economic practices. When the folks with the money don't NEED any longer, things change. Giving money to the "have nots" so to buy STUFF is not economically sustainable.
01-02-2013 09:32 AM
Poreaster - I do not think the rich have "needs" they only have "want's", just like the middle class in this country who purchased all the junk from China and the McMansion's with Ninja loans prior to our collapse into a depression in this country that will be with us for a long, long time. Adios Amigo. John
01-02-2013 09:42 AM
because that is the only way we can pay the debt is with revenues. You can shut the government down completely and the 16 trillion plus interest will still be there. Which means you and I have to pay taxes.
01-02-2013 10:02 AM
There is no way we can grow ourselves out of this mess Scott!!!!! Every move the fed makes only makes it easier for congress to keep spending beyond our means! WOW there is a phrase that many don't use anymore! "spending beyond our means"
The fed broke the economy a long time ago by lowering interest rates to low. Every QE actually hurts the economy.
When will you guys learn Austrian economics!
01-02-2013 10:07 AM - edited 01-02-2013 10:08 AM
Actually, we are already growing ourselves out of the mess because we have reduced the rate of decline by the greatest amount in decades....and this trend will continue. In the near future we will be turning the debt clock backward unless we starve our economy with the austerity plan. Our economics serves us better than the Austrian way. Why adopt the European model?