Chile Forum

Forty percent. On average, that is economic overhang of the U.S. economy. It's the percentage of federal spending that needs to be cut to balance that budget, and it also equals the chunk of private debt that will never be repaid and should be removed as assets from lender's balance sheets.

No politician dares to propose anything but minor, marginal cuts to spending. If lenders took the necessary write-downs on their bad debts, they would be declared insolvent. We have a complete vacuum of leadership. Our sock-puppet President has turned over authority to the Federal Reserve and the Big Banks and allowed them to "manage" this situation while he concentrates on his reelection in 2012. Extend and pretend, pretend and extend. If a rule or a law gets in the way of the fantasy, then that rule is suspended or the law is ignored.

Daily life goes on, the stock market ratchets higher with mathematically-impossible certitude. Retail prices for food and fuel also ratchet higher, but at a pace that hasn't caused any real concern among shoppers beyond grumbling. It all reminds me of the vibe in the Summer of 2008 when everyone sensed something was terribly wrong, but public officials claimed they had the situation under control.

Whenever I feel despondent about the situation back home, I always see this clip to cheer me up

http://www.youtube.com/watch?v=OiyH4QS8nCk

Mr Rugal10,
I have heard from "reliable sources" that the cause of all America's problems can be traced back to the inability of it's citizens to post links properly on Internet forums.

hmm, the last couple of articles posted here seem to think that a deficit is ok and that it's no problem. I get from them that a trillion here or there is no problem and we need to just relax. It's the classic eat, drink, be merry for tomorrow we may die crowd. In fact they think we should increase the spending even more and have a bigger party.

Nice articles but they don't address how we are gonna pay interest on a debt increasingly much more rapidly than our economic growth.

Maybe that's because it's from progressives who want to increase taxes and controls on people? It's certain that if we dramatically increased taxes and control we could meet our obligations for the foreseeable future.....hence there is no problem here people, move along.

I

Can

Hardly

Believe

This

Thread

Is

Still

Active.

May just have to go back and read what I've missed over the past year

(honestly thought - zero credibility here - I'm the one who has chosen to stay in this carcass of a country)

Dagny wrote:... I'm the one who has chosen to stay in this carcass of a country)

Don't feel bad. I'm still here too. The way it's going I'll probably end up carrying everything I own on my back trying to get out at the last possible moment.

Dagny wrote:I

Can

Hardly

Believe

This

Thread

Is

Still

Active.

May just have to go back and read what I've missed over the past year

(honestly thought - zero credibility here - I'm the one who has chosen to stay in this carcass of a country)

oh my goodness, she's back!!

Dagny wrote:I
Can
Hardly
Believe
This
Thread
Is
Still
Active.

May just have to go back and read what I've missed over the past year
(honestly thought - zero credibility here - I'm the one who has chosen to stay in this carcass of a country)

welcome back Dagny...
g~j took (some of) the initiative to keep this thread rolling over many months...
it's been kind of perverse fun

and we like spreading memes...
especially about the decline of empires - whenever and where ever they manifest
it's one of our favorite themes - along with decline of paper fiat...

but then empires and fiat currencies generally tend to dance together
and the muzak is just about to end...
reminds us of a really old Jamie Brockett tune (that very few may remember)...

"It was midnite on the sea
The band was play'n Nearer My God To Thee
Fare thee well Titanic, fare thee well"
...

anyway... kudos to Dagny for starting us off
even though there still remain a few nay-sayers out there
but, as we used to say in the backwoods of my former abode...

"throw enough shit against a wall and some of it is bound to stick"

so for all those with remaining, albeit crumbling, walls...
built on foundations of shallow delusions and narrow misconceptions
continuing to deny the empire's ultimate demise...

well, we'll just remind you we have loads more shit to throw...
so get used to it - 'cause it ain't gettin' any better
and y'all better have a Plan B - when the SHTF begins in earnest.


g~j, as you well know, took the red pill

hmm, the last couple of articles posted here seem to think that a deficit is ok and that it's no problem. I get from them that a trillion here or there is no problem and we need to just relax. It's the classic eat, drink, be merry for tomorrow we may die crowd. In fact they think we should increase the spending even more and have a bigger party.

Nice articles but they don't address how we are gonna pay interest on a debt increasingly much more rapidly than our economic growth.

Maybe that's because it's from progressives who want to increase taxes and controls on people? It's certain that if we dramatically increased taxes and control we could meet our obligations for the foreseeable future.....hence there is no problem here people, move along.

this is a complete mis-read and mis-statement of what the articles say. the first article (from "the american prospect") says that running a deficit is normal, and by itself is not a major problem. if the economy is managed intelligently, the govt will be able to pay down the debt. the debate is over what "smart management" means, and it is problematic because it requires long term fiscal discipline, which politicians are not famous for. the size of the current deficit is a concern, but it doesn't change the basic principles involved. some debt is normal, and if the economy gets going in the right direction, it is manageable.

the second article (from "the guardian") says that there is no good reason to trust the people who are now screaming about the deficit, because they are the same people who failed to read the economy correctly during the housing bubble and there is no evidence that they have learned anything since then.

What a travesty

http://www.nytimes.com/2011/02/28/opini ... globalhome

john wrote:What a travesty

http://www.nytimes.com/2011/02/28/opini ... globalhome

Travesty? Krugman is complaining that US federal funding may be reduced in areas that are the responsibilities of the state and local governments, as well as the parents of the children referred to. Of course, he is trying to make everyone cry over it. Krugman could explain why some of those poor school performance issues exist in TX but that would be, uh, politically incorrect.

PX is correct. in the end, the individuals and the families and the community all play an important role in education and the learning process. however....the feds and the state and county have a legal obligation to try to make free public education available, which is often expensive and wasteful.

i can think of several other examples of expensive and wasteful projects, both private and public. it's a human thing. when we get past the clan stage we start to develop complicated social/political mechanisms that consume a lot of resources and often become very inefficient.

in the case of education, the solution must be collective, and will require a widespread re-commitment by all parties to the basic principle that an educated public is necessary for a democracy to function well. prolly not gonna happen in texas.