Republicans have different spending priorities than Democrats. that's well known.
they will cut spending for the 99%, esp for Bishop Gecko's 47%, and increase "tax expenditures" for the wealthy and BigCorps, eg, $19B/year in TX for business tax expenditures.
NC's experiment of cutting unemployment totally failed to force the moochers/takers into getting jobs, no change in unemployment rate.
Without US government spending who is going to buy all those bombs? Clearly the US economy cannot exist without perpetual war. The factories will close and never be retooled to produce something as useless as consumer goods.
Ah, the persistent myth of "perpetual war".
Tell me, what % of the US economy is dependent on "perpetual war"?
Kinda hard to "retool" factories to produce consumer goods, when that is what they are already doing, innit?
Stephen Roach takes the Fed to the woodshed for its accommodation on interest rates:
Read more at http://www.project-syndicate.org/com...4HpATcXwhWP.99America’s Federal Reserve is headed down a familiar – and highly dangerous – path. Steeped in denial of its past mistakes, the Fed is pursuing the same incremental approach that helped set the stage for the financial crisis of 2008-2009. The consequences could be similarly catastrophic.
Consider the December meeting of the Federal Open Market Committee (FOMC), where discussions of raising the benchmark federal funds rate were couched in adjectives, rather than explicit actions.
In line with prior forward guidance that the policy rate would be kept near zero for a “considerable” amount of time after the Fed stopped purchasing long-term assets in October, the FOMC declared that it can now afford to be “patient” in waiting for the right conditions to raise the rate. Add to that Fed Chair Janet Yellen’s declaration that at least a couple more FOMC meetings would need to take place before any such “lift-off” occurs, and the Fed seems to be telegraphing a protracted journey on the road to policy normalization.
This bears an eerie resemblance to the script of 2004-2006, when the Fed’s incremental approach led to the near-fatal mistake of condoning mounting excesses in financial markets and the real economy. After pushing the federal funds rate to a 45-year low of 1% following the collapse of the equity bubble of the early 2000s, the Fed delayed policy normalization for an inordinately long period. And when it finally began to raise the benchmark rate, it did so excruciatingly slowly.
In the 24 months from June 2004, the FOMC raised the federal funds rate from 1% to 5.25% in 17 increments of 25 basis points each. Meanwhile, housing and credit bubbles were rapidly expanding, fueling excessive household consumption, a sharp drop in personal savings, and a record current-account deficit – imbalances that set the stage for the meltdown that was soon to follow.
Read more at http://www.project-syndicate.org/com...4HpATcXwhWP.99
Central banking has lost its way. Trapped in a post-crisis quagmire of zero interest rates and swollen balance sheets, the world’s major central banks do not have an effective strategy for regaining control over financial markets or the real economies that they are supposed to manage. Policy levers – both benchmark interest rates and central banks’ balance sheets – remain at their emergency settings, even though the emergency ended long ago.
While this approach has succeeded in boosting financial markets, it has failed to cure bruised and battered developed economies, which remain mired in subpar recoveries and plagued with deflationary risks. Moreover, the longer central banks promote financial-market froth, the more dependent their economies become on these precarious markets and the weaker the incentives for politicians and fiscal authorities to address the need for balance-sheet repair and structural reform.
Good article but I think we go into recession if the Fed starts raising interest rates right now. Damned if you do, damned if you don't.
In a world of negative true interest rates there is nowhere to put money BUT the stock market and real estate. Both markets are getting frothy because of the funny money.
Of course, I'm ignoring the gold/silver bugs. Those guys are trying to swim upstream.
That's an opinion you and Wall Street share. The era of zero bound interest rate policy is almost over.
six years after the epochal financial panic
... the criminal perps are richer and more powerful than ever, while their robbed, bled, screwed victims continue to be powerless and more poor.
Market wanted to clear out the dead wood quickly & without mercy. We opted to save the dead wood and bleed out slowly instead. Jury is still out if we made the right decision imo.
Lehman failed, credit markets froze. Any deadwood was ignored because the financial sector was looting and booming.
"the market"
Republicans, for all their bluster about free markets, voted to socialize the costs of the Panic of 2008.
and with help from the Dems, they just voted to let the banks gamble with taxpayer-insured taxpayers' deposits. Voted for private gain, public pain. heads we win, tails all y'all lose. ing amazing.
There will be another huge, deep financial crisis, sooner rather than later. There always is, has been for centuries, when financial sector/capitalists are free from regulation, free from countervailing power.
they're working hand-in-glove with the GOP to screw us all, wouldn't you say?and with help from the Dems, they just voted to let the banks gamble with taxpayer-insured taxpayers' deposits.
yep, that's why I support the Dems only because they aren't a aggressively, intentionally horrible as the Repugs, just passively so.
Obama said he hasn't vetoed much because (the insane House Repugs ) the Dem Senate blocked.
now he's he says ready to veto the insane House/Senate Repugs
Why single out republicans? Dems, independents, just about all of the American people wanted to bail out the tbtf's in the mistaken belief that the crisis on wall street could be kept from affecting main street. As I recall you and I were the only ones on here that thought nationalization as the swedes did in the 90's or as we did with the S&L's was a better option.
Most hypocritical. They abandoned their so-called principles in adversityWhy single out republicans?
"Dems, independents, just about all of the American people wanted to bail out the tbtf's"
bull .
It was very clear that The American People didn't know WTF was going on in the autumn 2008 crash of the entire criminal financial sector. Lehman? Bear Stearns? AIG? who's that?
I remember very clearly reading that the incredible complexity of the financial system had finance people saying "we don't really know the cause, don't what's going on, except nobody's lending anymore, credit freeze up".
All the financial sector knew was they wanted was $Ts in bailout money, and they got it.
The American People were, even as now, nothing but duped, ignorant, trusting bystanders to the financial sector's meltdown.
The American People didn't know, don't know, WTF are MBS, CDS, CDO, chain-of- le-breaking MERS, counter-parties, derivatives,etc, etc, all the "financial innovations" the criminal financial sector got via the Gramm–Leach–Bliley Act
Bailing out wall street is part of the Dems principles?
Repug Paulson demanded TARP, Repug WH have it to him.
Nationalizing the baking system leans a little more left than right, wouldn't you say?
of course. Repugs would NEVER nationalize anything.
I was all for nationalizing all the bankrupt banks, just like FDIC does with non-TBTF banks by the 100s, AIG, re-implementing Glass-Steagall WITH A VENGEANCE.
It's the Repugs who have been pushing for, gutting, defunding Sarbones-Oxley, Dodd-Frank, CFPB, etc.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote
