US can fix budget woes

[Hobo1]

I recently read an article titled US can Fix Budget Woes

I am pretty well informed on macroeconomics. I think I have followed what the Fed is doing with their quantitative easing (QE).

However, this article presents some concepts that are new to me and I can't figure out how the suggested remedy works. Can anyone who is familiar with this idea please enlighten me.

 

[dogtowner]

Interesting. gonna have to chew on this for a bit to understand it. i dont think there is enough detail in the story so ill probably need to read up on iceland.

 

[dogtowner]

This might help understand things in Iceland.

In a nutshell
- they bailed out homeowners instead of banks
- they threw bankers in the hoosegow for corruption
- they forebade loans indexing in foreign currency
- they cut govt spending
- they raised taxes

not quite what was described in your article. I do believe that had TARP beed used as Iceland did it (to pay off the "troubled assets" as it was sold to do instead of fat checks to banks (doing nothing to address the troubled assets) it would have words far better.

 

[Gipper]

It seems to me the article is proposing more money printing to fix America's economic problems. This is exactly the wrong thing to do after GIVING trillions in big bank bailouts. We will further inflate our currency by bailing out tax payers and non-tax payers. Printing trillions of dollars is not the answer...as far as I can see.

The Fed is owned by the big banks. Who owns the big banks? The power elite own the big banks. They have no intention of giving up their power and wealth. This is why Big Ears and the Fed government bailed out the banks rather than the American people.

The Fed continues to flood the banks with cash, while buying the banks bad debts, in the wrongheaded belief that businesses will take that money and hire people, thus improving employment. Businesses are not hiring because there is little demand because the American people are tapped out. But all that money is resulting in a misallocation of resources...thus blowing up another bumble that will also explode.

 

[cashmcall]

It seems to me the article is proposing more money printing to fix America's economic problems. This is exactly the wrong thing to do after GIVING trillions in big bank bailouts. We will further inflate our currency by bailing out tax payers and non-tax payers. Printing trillions of dollars is not the answer...as far as I can see.

The Fed is owned by the big banks. Who owns the big banks? The power elite own the big banks. They have no intention of giving up their power and wealth. This is why Big Ears and the Fed government bailed out the banks rather than the American people.

The Fed continues to flood the banks with cash, while buying the banks bad debts, in the wrongheaded belief that businesses will take that money and hire people, thus improving employment. Businesses are not hiring because there is little demand because the American people are tapped out. But all that money is resulting in a misallocation of resources...thus blowing up another bumble that will alsoexplode.

yes gipper, thats what they told Japan to do over two decades ago.. BORROW...they have had very little change in the economy...iceland cut spending and raised taxes..

 

[dogtowner]

yes gipper, thats what they told Japan to do over two decades ago.. BORROW...they have had very little change in the economy...iceland cut spending and raised taxes..

don't forget what bailing out they did was for citizens and banks be damned. I doubt Japan did that.

 

[cashmcall]

don't forget what bailing out they did was for citizens and banks be damned. I doubt Japan did that.

Thanks for adding that...they did what needed to be done and nothing more...

 

[cashmcall]

Hobo.. we can not fix this economy with more of the same..this is Obama's ECONOMY..now we have all these people who know very little about the markets listening to a lot of chatter from both sides concerning “how well the stock market is doing.” All things considered, the same could be said of the stock market for the better part of the great depression.
I say we all cut to chase here and call it what it is: The devaluation of the currency has resulted in inflated nominal numbers in the markets. In other words, the adjustment to reality has yet to come. And it will come. It always does. It is beside the fact that the money being spent is dedicated to the non-productive sectors of the economy when you calculate the scale of the stupidity here....
The government policies that created the housing bubble? That was neophite compared to the bubble they are creating now. It could result in a world wide economic catastrophy, and Obama’s signature will be all over it.
Remember, the Arab Spring started as a protest against food prices. We now have the muslim brotherhood running Egypt. Iran, Russia, and China, along with every tin hat dictator on the planet senses weakness. They are moving. Obama? He seems to think you can lead from behind (what an !!!!!).
To note: What was the cause of the price hikes that started the arab spring? Why that would be the leftist in the US government who thought it would be a good thing to turn half our food production of the most basic grain, corn, into fuel that will corrode you cars engine. Not only did this start civil wars, it was a zero sum from the get-go: It takes 1.2 gallons of fossil fuels to produce 1 gallon of ethanol.
As usual, The lefts pipe dreams to reach their self actualization needs by using the confiscatory powers of government to fund really, I mean really, unthought out stupid ideas without a nary of a concern of the consequences is the root cause of the dysfunctions. The obama administration it's their crowning acheivement.It is just bad business. In short, If a foreign country had done the damage to our economy that the obama administration has caused, it would be considered a declaration of war.

You know i told myself I wasn't going to post mad anymore..But God I am getting so tired of these idiots...

 

[Gipper]

Hobo.. we can not fix this economy with more of the same..this is Obama's ECONOMY..now we have all these people who know very little about the markets listening to a lot of chatter from both sides concerning “how well the stock market is doing.” All things considered, the same could be said of the stock market for the better part of the great depression.
I say we all cut to chase here and call it what it is: The devaluation of the currency has resulted in inflated nominal numbers in the markets. In other words, the adjustment to reality has yet to come. And it will come. It always does. It is beside the fact that the money being spent is dedicated to the non-productive sectors of the economy when you calculate the scale of the stupidity here....
The government policies that created the housing bubble? That was neophite compared to the bubble they are creating now. It could result in a world wide economic catastrophy, and Obama’s signature will be all over it.
Remember, the Arab Spring started as a protest against food prices. We now have the muslim brotherhood running Egypt. Iran, Russia, and China, along with every tin hat dictator on the planet senses weakness. They are moving. Obama? He seems to think you can lead from behind (what an !!!!!).
To note: What was the cause of the price hikes that started the arab spring? Why that would be the leftist in the US government who thought it would be a good thing to turn half our food production of the most basic grain, corn, into fuel that will corrode you cars engine. Not only did this start civil wars, it was a zero sum from the get-go: It takes 1.2 gallons of fossil fuels to produce 1 gallon of ethanol.
As usual, The lefts pipe dreams to reach their self actualization needs by using the confiscatory powers of government to fund really, I mean really, unthought out stupid ideas without a nary of a concern of the consequences is the root cause of the dysfunctions. The obama administration it's their crowning acheivement.It is just bad business. In short, If a foreign country had done the damage to our economy that the obama administration has caused, it would be considered a declaration of war.

You know i told myself I wasn't going to post mad anymore..But God I am getting so tired of these idiots...

Yes they are idiots, at least when it comes to economics. For anyone to think Keynesian economics along with collectivist government polices will work, is a fool. And fools ultimately do not succeed. This will be their demise. Gary North does a nice job of proving their ignorance and coming demise here...
http://www.garynorth.com/public/10681.cfm

 

[Cruella]

Yes they are idiots, at least when it comes to economics. For anyone to think Keynesian economics along with collectivist government polices will work, is a fool. And fools ultimately do not succeed. This will be their demise. Gary North does a nice job of proving their ignorance and coming demise here...
http://www.garynorth.com/public/10681.cfm

It wished it was just their demise. Unfortunately we are all going down with it.

 

[cashmcall]

Yes they are idiots, at least when it comes to economics. For anyone to think Keynesian economics along with collectivist government polices will work, is a fool. And fools ultimately do not succeed. This will be their demise. Gary North does a nice job of proving their ignorance and coming demise here...
http://www.garynorth.com/public/10681.cfm

Thanks for the link..