Originally posted by jimmyx
Originally posted by criticalmindseed
snip wall st, print money to pay someone who needs work to build a new school or bridge or something, go back to gold standard & outlaw usury....
you are the exact reason that an education in economics needs to be taught. please do some actual research during the 1800's of america of the booms and busts of the economy. this has been tried, nothing new except ignorance. please explain IN DETAIL how going back to the gold standard would be a benefit.
Originally posted by WhereIsReality
They will raise the debt celling and the show will go on. Business as usual.
Originally posted by Kusinjo
Fractional banking only works for the bankers. It doesn't hurt anyone for awhile, is more accurate in my opinion. If I were given the ability to create money out of thin air and lend it you with the promise of being paid back with interest, then I am getting something for nothing. But then to turn around and take that very money that I created to lend to you and relend it again and again... Wow!!! It doesn't hurt as long as you can pay me back what I lent you along with the interest but how long will it be before you need to borrow again? How long will it be until your need to borrow becomes so inflated that there is no way I will ever see another dime from you? But that's alright I can just create money from thin air, no worries! For me. You, on the other hand, are screwed. I own you.
The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.
Originally posted by redhatty
IMVHO, I think the political body is going to happily allow us to go over the fiscal cliff, so that the immediate forced austerity to the US will be blamed on Congress rather than Obama
Originally posted by Observor
What about the debt ceiling? Even with all the austerity measures and tax increases, the revenues will still not match the spending and the treasury needs to borrow. Since the current debt ceiling will be hit very shortly, it is going to be very funny situation if the Congress doesn't either increase the debt ceiling or remove it completely. It will be a scenario where the administration has to necessarily ignore some part of what Congress passed debt ceiling/spending/taxes or default and/or let the administration come to a halt.