Say Anything Blog

So you’re saying socailism is the inevitable end of the American economy and subsequently America as a Union?

What do you propose as the cure for what ails us?

Well, be realistic. I feel the U.S. has a choice to reduce military spending to a bear minimum or remain on this course until your coffers are empty and then what?

The U.S. alienated a lot of foreigners with all this fight against terror tactics. I read a year or some time ago that, for the first time ever, U.S. treasury bonds auctioned off were not all sold. Without all the “hated” foreign investments the U.S. economy can’t maintain itself.

Countries like Saudi Arabia maintain hundreds of billions of dollars in the U.S. economy shoring it with all its financial might. Without Saudi Arabia insisting to maintain the US Dollar as the currency of oil exchange, the $ would have nose dived a long time ago.

During the 70’s oil crisis Saudi Arabia would buy all that it needs from the U.S. Now with all the paranoia Saudi Arabia was told that its money is not good here. So you guys got a double whammy. Oil prices are high, so you’re paying from the nose and when we offer the money in exchange for goods, you decline. So we take our(your) money to some one who appreciates our business and doesn’t throw us in Gtmno for being called Abdul

Go ahead, bet against the U.S. economy.

People have been talking down the U.S. economy for generations and generations now, and they have all ended up on the wrong side of history.

Wishful thinking about the end of the U.S. does not mean it will happen.

throw us in Gtmno for being called Abdul

Oh yeah, Bush throws people in Gitmo for having a middle eastern name.

Your knowledge of the world would fill a comic book.

People have been talking down the U.S. economy for generations and generations now

You’re either very delusional or just simple minded. The US is only 230 odd years old. If an average generation lasts 65 years or so, the whole history of the US spans 4 or 5 generations at best.

Look its sheer economics. Without someone to buy US bonds you can’t pay for all the things you’re doing as a country. You’d have to cut down on your expenses somewhere.
The logical area is military. People around the globe own these corporations that make US armaments. The most lucrative business in the world is military and the biggest spender is the US.

Spend more on education and infrastructure to produce and build for future.

Well, be realistic. I feel the U.S. has a choice to reduce military spending to a bear minimum or remain on this course until your coffers are empty and then what?

What about cutting the largest portion of the budget… say social spending?

The logical area is military.

Spoken like a true enemy… stop spending money on defense of liberty in America and elsewhere.  Instead keep spending money on failed social programs which is 3 times more than military expenditures… yeah, that’s logical.

Infrastructures, police, hospitals etc are being neglected more and more due to economic restraints.

You mean the fact that we’re spending more than ever on infrastructure, police and hospitals than ever before.  Is that what you meant?

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

California alone is considered in the 10 or 20 top economies of the world. With a population of about 90 million people

Umm Califronia has a population according to the 2000 census of 33,871,648.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

In both cases the huge burdens of debt were too much for those countries to bear and remain as one. Now we are told by the chief of the IMF that a sudden collapse of the U.S. Dollar is very much probable.

Actually the real debt is only about 38% of our GDP, well within our ability to pay. 

What we do have is a massive increase in entitlement spending, Social Security being the main area, due to come in which there is no reasonable method of meeting those obligations.

So no the debt is not a problem (nor is the deficit.) Future entitlements are a big problem.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

You’re either very delusional or just simple minded. The US is only 230 odd years old. If an average generation lasts 65 years or so, the whole history of the US spans 4 or 5 generations at best.

Look who is talking.  Generations are based on the age of the adult when the child is born!  If you say the average adult is 25 when they have kids and it used to be 20 there is at LEAST 10 generations; twice as many your “at best” figures.

"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

This guy isn’t the sharpest cookie in the shed.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Spend more on education and infrastructure to produce and build for future.

A “dumb” lazy person produces just as much; maybe even more than a “smart” lazy person.

An education is important but just because you (not really you nalhamid, but taxpayers) dump more money into the program doesn’t ensure a “brighter” future.  The same can be said for infrastucture. Just because you build it doesn’t mean it can produce enough to support itself.

"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

This guy isn’t the sharpest cookie in the shed.

Not the brightest biscotti in the building?

For any voter trying to choose between the two candidates for commander in chief, there is no better test than this: When American strategy in a critical theater was up for grabs, John McCain proposed a highly unpopular and risky path, which he accurately predicted could lead to success. Barack Obama proposed a popular and politically safe route that would have led to an unnecessary and debilitating American defeat at the hands of al Qaeda.

Frederick W. Kagan

A few floors short of a fruit salad!
btw… who we talking about?

His elevator rides the short bus.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

If an average generation lasts 65 years or so…

There is a new generation every 20-30 years.  If this is any example of your thinking, that would explain your faulty conclusions.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

He’s rowing with one oar out of the loafer

He’s a few cards short of a dozen.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

He’s a few fries short of a Happily Ever After!

For any voter trying to choose between the two candidates for commander in chief, there is no better test than this: When American strategy in a critical theater was up for grabs, John McCain proposed a highly unpopular and risky path, which he accurately predicted could lead to success. Barack Obama proposed a popular and politically safe route that would have led to an unnecessary and debilitating American defeat at the hands of al Qaeda.

Frederick W. Kagan

Here is an Islamist who claims to be a “moderate”, and yet who wishes for the end of the US.  Very instructive.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

He is an Islamic extremist making every excuse in the book for failed Muslim states, blaming Israel on top of it, and suggesting that the real problem is U.S. foreign policy in South America.

An example of why Islam is still in the dark ages.

He’s a few clowns short of a full load.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

He’s a few Stukas short of a hootenanny!

For any voter trying to choose between the two candidates for commander in chief, there is no better test than this: When American strategy in a critical theater was up for grabs, John McCain proposed a highly unpopular and risky path, which he accurately predicted could lead to success. Barack Obama proposed a popular and politically safe route that would have led to an unnecessary and debilitating American defeat at the hands of al Qaeda.

Frederick W. Kagan

Hes a few grapes short of a full bale

I guess everyone responding to Nalhamid’s post and his comments think he is mentally unbalanced and his thoughts and really his original question do not deserve any serious, thoughful responses? Strange!

While I don’t agree with much of what he has to say, it seems that his comments are a genuine reflection of his differing world view; and perhaps with some rational and intelligent responses, he might be able to adjust his views to better reflect reality. But, I am probably wrong, I just read his comments differently than all those ridiculing him have.

No matter the age or state of health, for a military man it is always glorious to tilt at windmills, rescue a fair Dulcinea and be a gallant knight in armor in a glorious cause.

There’s more than just a “world view” problem here.  I’d like to see a basic grasp of the facts.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

I think they are one and the same thing (World Views & grasping the facts) and I respectfully disagree with the idea that he deserves ridicule for having the courage to express his views in what he had to know would be a hostile environment. Is he completely wrong about the fragile nature of the dollar vis-à-vis the petroleum producing states and their moves, along with Russia, to go to the Euro instead? Is he completely wrong with the idea that if we do not control our spending and allow our national debt to continue to grow unrestrained our economy might collapse or at least cause us to suffer the loss of many benefits that we take for granted in America?

I am sorry Whistler, but with the many intelligent people contributing to this blog, I think we would all benefit by having these questions considered and perhaps it would benefit Nalhamid, although that is a secondary issue to me. Lastly, I think many people commenting here are very judgmental and too quick to engage in ridicule and attack people because they appear ignorant or ideological, versus engaging in productive debates.

No matter the age or state of health, for a military man it is always glorious to tilt at windmills, rescue a fair Dulcinea and be a gallant knight in armor in a glorious cause.

I wasn’t ridiculing him, I was just playing and I express my perpetual SA apology. I don’t know what comes over me but I do know it’s all Proof, Bat One, and Whistlers, fault. If not for them, I’d actually act decent.

_____________
Now, nalhamid...as for your post, I don’t believe we, as a society, in our country, will allow this to happen. The solutions don’t lie in the division of the states, the poor, the people or any separation.
Emotions and pride are only prolonging the inevitable of reality and of course it hits the irrational the hardest, as it’s doing to some now.
Until the majority of our country takes on the necessary responsibly, it may seem hopeless to some, but as long as there is logic, this country will prevail… as a whole. Don’t underestimate the ability of a united country and I believe you give way too little credit for our country’s subsistence.

Is he completely wrong with the idea that
if we do not control our spending and allow our national debt to continue to grow unrestrained…

Both of those are false premises; a demand economic system is self-correcting.  I wasn’t ridiculing him either, I was simply pointing out one of his many false premises.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

I think we would all benefit by having these questions considered and perhaps it would benefit Nalhamid,

Frankly not only the premise but the basic facts of the post are in error.

Now some of that is forgivable but not when he makes errors and keeps spouting off.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Spend more on education and infrastructure to produce and build for future.

Certainly beyond a doubt we spend more on education than any other large country.

I would also venture to say that overall we have the best infrastructure in the world, although of course it could be improved through better management of our resources.

Maybe there’s some smaller countries that have done great work on a smaller scale but we do pretty well in a huge country.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

First off, I appreciate what Neiman said and thank him for that, but I get it. I’m the new boy on the block and I’m Muslim. you guys need to take me through the rituals, I understand, but evaluate what I say not who I am.

I really don’t wish ill will to the US. I was merely trying to show that a weak Dollar is a reflection of a weak economy. The examples I gave of Rome and the USSR were to open everyone’s eyes that this may be possible and that sometimes the people on the train don’t know they’re about to crash. In 1999 70 cents could buy 1 Euro, today you would need $1.40 to buy one. Does anyone see when this downward trend is going to end?

Every country produces commodities or services. They compete with other countries commodities or services. Germany for example took the road towards maintaining quality as its primary point of distinction. This actually paid off, as Germany outpaced Japan as the largest exporter in the world.

In this time and age, a mere discussion about a country’s currency is enough to give the jitters, but to have the IMF chief confirming that a sudden collapse of the US Dollar is possible is something I’ve never heard before.  This lead me to conclude that there may be something this man knows that we don’t, hence my entry. I took this probability to its grotesque conclusion.

When we here were children, made in America was a seal of trust. We knew if it’s American it must be good. Now you’d be hard pressed to find any product made in the US. The common denominator in regards to Rome, USSR and the US is a weakening economy. The weaker an economy becomes, the more susceptible that country is to minor shocks or disruptions.

What is the solution? I really don’t know, but like oneself when faced with financial worries, we tend to stop spending on luxuries and concentrate on necessities. The military manufacturing industry is one of the most wasteful. Monies allocated for it, could be used to shore up the economy in many ways that would reflect on the value of the Dollar and will go a long way in reassuring everyone about the US economy.

I was merely trying to show that a weak Dollar is a reflection of a weak economy.

Another wrong premise; it’s actually an economic policy.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

Your laboring under the assumption that a stronger dollar is somehow good. 

It’s good for the consumer but bad for the exporter.

I realize that you’ve been misinformed but Neiman’s right in that it’s not your fault.

For one thing the US added 213 Billion dollars to it’s GDP (inflation adjusted) in the last twelve months.  True that’s not astounding growth but by itself it’s as large as the 30th largest economy in the world.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

So Whistler, if a country is better off with a devalued currency, why don’t other countries follow suit?  And, if you don’t mind I have a follow up question; I have friends in the oil sector that tell me the US government indicated to the major oil countries, mainly Saudi Arabia, that it would look unfavorably to any move away from the $, especially towards the Euro. But if the devaluation of the Dollar is a good thing why care?

Artificially devaluing it is also a bad thing.  Allowing it to float is the right policy.

I would hope that the dollar remains the world reserve currency but it wouldn’t be the end of the world if it wasn’t.

Here’s an interesting article about the dollar if you’re interested.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

..,.if a country is better off with a devalued currency, No one said that; it’s a tradeoff.  Right now, a weak dollar is our policy choice. why don’t other countries follow suit? Unlike us, they don’t have the choice.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

I just posted a list of current economic achievements on the front page. 

We’re sitting just fine nalhamid so you can worry about someone else.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Thank you all for both the patience and the info. You could fill a whole library with stuff I don’t know, but I’m learning every day and will love to come back later when I have some things to openly talk about.

Thanks again

nalhamid: How do you explain all the declarative statements you made in your article, then?  You spoke as if you did know something, and now you confess to not knowing so much.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

As I explained, the IMF chief expressed his concerns in regards to the value of the US Dollar. I noted that when the Euro first emerged in 1990’s its value was 70 US cents. Today it’s close to $1.40, that’s a big downturn in regards to actual value. I equated that to lower income for US products, even if numerically higher dollar numbers, due to its eroded value in the international market. As I saw no short or long term plan to reverse this trend, which in turn would make investors look elsewhere with to a more stable currency. This brought me to theorize a what if scenario and to compare the US to other mighty nations that have gone before.

I hope I was clear.

I equated that to lower income for US products, even if numerically higher dollar numbers, due to its eroded value in the international market.

Another flawed premise. We buy a lot of our own products, so that isn’t a factor. Besides, if wages outpace prices, we are better off.  Once again, you are fooled by static analysis.  Economics is dynamic, with many factors interacting.

If you had put out that you were theorizing in your original article, it might have been better understood.  You didn’t do that.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

Actually what the low dollar to the Euro does is make US products cheaper in Europe and European products more expensive in the US.

Now the international investors could look at the currency trends and decide to put their money into an Euro investment rather than a Dollar investment.  The problem is that there aren’t as many good opportunities to invest in Europe as the US due to the Socialistic nature of those economies.  Our economy has consistently grown faster than Europe.  The other problem with that is that while the dollar might be able to go lower, but Euro is unlikely to go much higher.  (Sure we’ve got some problems but the Europeans have those same problems.)

So if a foreign investor (trader) converts to Euro’s he’s probably buying at the high and will see his investment shrink.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

In a comment on another thread several weeks ago, I offered this quote from Dow-Jones Market Watch:

LONDON (MarketWatch)—French politicians are clamoring for the European Central Bank to do something about the fast-appreciating euro—cut interest rates, that is.

President Nicolas Sarkozy, who’s shown a proclivity for wanting to shake things up since he was recently elected as France’s leader, argues that if the dollar keeps collapsing, the opportunity for exports will as well—and both the French and the European economies will, in turn, suffer.

The response has hardly been reassuring, to Paris.

In particular, Lorenzo Bini Smaghi, a member of the ECB’s board, sniffed on Friday that “only the president of the ECB and the Eurogroup should comment on the euro exchange rate.” And, in case anybody missed the point, he made the added call for politicians to use “greater verbal discipline” in discussing such matters.

Obviously, our trading partners are not as enthusiastic about the “strong” Euro and the “weak” dollar as some of our less knowledgeable commenters here.

Furthermore, remember that all of the mainstream media have been filled with stories over the past three or four years about complaints from the US that the Chinese currency is substantially undervalued which makes Chinese imports into the US such an attractive proposition, much to the detriment of our current accounts (im)balance.

Hell, even the economics illiterate Democrats in Congress have complained about the Chinese unwillingness to revalue their currency upwards… the very same illiterates that are now screaming about a “weak” US dollar.

As Whistler points out sagely above, US exports are up substantially on the “weaker” dollar and the trade imbalance is diminishing for exactly the same reason.

As for this bit of nonsense,

As I saw no short or long term plan to reverse this trend, which in turn would make investors look elsewhere with to a more stable currency.

Rubbish!

Nalhamid, the current record for foreign investment in the US in a single calendar year is some $363 billion… a record expected to be eclipsed this year.

As both Whistler and Robert have pointed out, the “weaker” dollar is not a symptom of a weak US economy.  And for foreign investors with dollars to spend, that “weak” dollar represents an investment opportunity, much the same as I would use a drop in the share price of Countrywide Financial (CFC) to purchase even more shares of the company on the reasonable expectation that my investment will pay off all the more handsomely down the road because of the lower price I’ve paid.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

I want to thank Neiman for slapping me around a bit so that I would try to engage nalhamid in a discussion.

I took him (Halhamid) for a person who wasn’t interested in facts etc.  I was wrong and Neiman was right.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

nalhamid makes more sense than all you bozos put together.
If a sinking dollar increases the costs of imports then how can that be good for the American consumer? Isn’t that what we do best.....buy stuff from other countries? What will we do when inflation slaps us in the back of the head? How much is a barrel of oil?

r108
a cheap dollar is not the policy we choose.....it is all we have. Strengthening the dollar would require raising interest rates. What do you suppose that would do to this robust (roaring according to Whistler)economy.

This country is on a crash course and when it happens you can do what you do best and blame clinton.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark at the same time you guys blather about the trade deficit, which is in part caused by the dollar being higher valued.

So the US Consumer is helped in that exports are helped.  A too high or too low dollar is a bad thing.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Mark D,

It would seem that for a man in your situation, the only rational choice would be to sell what assets you have, and move to Europe.  Question is which country?

England, despite their current Labor government, is still struggling to readjust their economy toward a more market-oriented, capitalist system.  And besides, with your disposition, you’d find the weather hateful.

France and Germany are both in conservative, free-market hands, as is most of Eastern Europe.  The Scandinavian countries have awakened to the reality of both the Islamist threat they’ve imported and the socialist indenture they’ve foolishly created.

But Brussels seems sufficiently oblivious to suit your purposes.  And they really do believe in all that one-world, social utopia crap too.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

There are only two countries in Europe that are doing anywhere close to as well as we are.  Norway with it’s oil revenue and Ireland that has out free-marketed us in the last few years.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

This country is on a crash course and when it happens you can do what you do best and blame clinton.

Your confidence in the economy is underwhelming.  Go ahead, stick your head in the sand waiting for Armaggedon while the rest of us reap the rewards of the free market.

You don’t have to be a moron to be a liberal Democrat but it sure helps.

a cheap dollar is not the policy we choose.....it is all we have. More economic ignorance from you, which you illustrate with your next comment. Strengthening the dollar would require raising interest rates. So, we do have a choice! What do you suppose that would do to this robust (roaring according to Whistler)economy. Change the mix. Right now, we are pandering to the unions and their whining about the so-called “trade deficit”. It’s both bad politics and bad economics.  Even so, we are doing quite well.

The low interest rates have caused a shift in investment to less-productive sectors like residential housing.  The transition, which the lefties are presently whining about, will be good for our economy.  I don’t expect you to understand that, though.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

If there is a continuous trade imbalance between the US and the rest of the world, wouldn’t that reduce cumulative wealth?

If it will, when will it affect dramatically the US economy?
If it won’t, how would the wealth be returned?

Whistler you stated “Actually the real debt is only about 38% of our GDP, well within our ability to pay.” You meant public debt and not total debt, right? Because total debt is about 65% of the GDP.

Why isn’t there a federal mandate to reduce the national debt and eliminate it within a certain period of time, as you already are paying interest on this debt, why not pay a little bit more every year to gradually eliminate it all together?

Appreciate any comments

If there is a continuous trade imbalance between the US and the rest of the world, wouldn’t that reduce cumulative wealth?

You obviously know nothing about economics at any level so why don’t you stop showing your ignorance and enroll into a college where you can become educated in the subject.

You don’t have to be a moron to be a liberal Democrat but it sure helps.

r108
The choices are:
Do nothing......economy continues slide.
Lower rates.....economy continues to slide due to inflationary pressures, high oil and gas, housing.
Higher rates.....economy continues slide due to higher credit costs, housing.

Up to $4 Trillion Decline in U.S. Household Real Estate Value Predicted

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

Mark, false premises give false conclusions. [logic 101] i.e. the economy remains strong despite everything you listed aa a potential negative.

You don’t have to be a moron to be a liberal Democrat but it sure helps.

If there is a continuous trade imbalance between the US and the rest of the world, wouldn’t that reduce cumulative wealth?

Actually the trade imbalance is a sign of our economic strength meaning we can afford to buy products from the rest of the world because we are richer.

As Walter Williams said “I’ve got a trade imbalance with my butcher.” It’s not a terrible thing.  If foreigners invest in the US it’s because we’re a great place to invest.

Why isn’t there a federal mandate to reduce the national debt and eliminate it within a certain period of time

The United States isn’t a person who’s going to retire.  We don’t need to reduce or eliminate our debt.  Right now our economy is growing faster than our debt so we are in effect reducing it.  (What if we had not incurred any new debt since 1970, would we consider that debt a problem?  (Or we never really paid off the World War Two debt, but it’s not even a factor in our reasoning).

It is important IMO for us to grow the economy faster than the debt.  The proper way to do that is to eliminate counter-productive spending that keeps people from working and costs a ton to administer. 

We also have to quit making false promises such as the Social Security scam.

I won’t say we don’t have problems, but they aren’t the problems that you’ve been told of.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Mark D,

The very fact that you offer the exact same conclusion for each of your alternatives demonstrates the simple-minded ignorance behind what you’ve written.

Your comment does offer the opportunity to suggest another alternative that you have obviously, or is that obliviously, overlooked:  Tax rate cuts!

Business and personal income tax rates are still too high, as are taxes on capital, both capital gains and dividends.  Cut ‘em!  All foo ‘em!

There’s no denying the economic stimulus provided by cuts in tax rates.  As you appear to be so concerned and convinced that the economy is going to slide into decline and recession no matter what else we do, the obvious answer is to do something proven to generate more economic growth, not less.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One
Do you feel the economy is in decline and heading for recession?

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

More Crap that will end the United States.

Passed by the House Of Representatives today.

You got to read this crap.

VIOLENT RADICALIZATION- The term `violent radicalization’ means the process of adopting or promoting an extremist belief system for the purpose of facilitating ideologically based violence to advance political, religious, or social change.

HOMEGROWN TERRORISM- The term `homegrown terrorism’ means the use, planned use, or threatened use, of force or violence by a group or individual born, raised, or based and operating primarily within the United States or any possession of the United States to intimidate or coerce the United States government, the civilian population of the United States, or any segment thereof, in furtherance of political or social objectives.

IDEOLOGICALLY BASED VIOLENCE- The term `ideologically-based violence’ means the use, planned use, or threatened use of force or violence by a group or individual to promote the group or individual’s political, religious, or social beliefs

H.R. 1955: Violent Radicalization and Homegrown Terrorism Prevention Act of 2007

I’ve learned so much in two days than years reading all those economic books and magazines. I truly am in your cumulative debt for the patience and enlightenment you’ve given me.

I understand the analogy of the butcher, but if I could take it one step further and ask where would Walter Williams get the funds to pay the butcher and everyone else, if all that is exchanged in his household is between the members of the same family. There is no outside income entering Walter Williams home. Only expenses. Wouldn’t there be a day of reckoning?

I did ask an investor why he chose the US, he said that: a- you can fire anyone, anytime you want for no reason as long as it’s not racial or other reasons and b- the entire system is geared to the holder of capital more than the worker, insuring my investment won’t be lost.

A German friend of mine told me in the late 80’s that the unemployment system there would pay him a full salary for up to 6 or 9 months and would reduce the amount given then. It would go on for years, he said. I’m not sure, but the system may have changed, but not that much.

The good news is that when people lose their jobs here they can find another one, often better than the last although it might take some flexibility. 

Don’t think workers here aren’t better off than most any other place in the world. 

The fact is the bad workers hurt their peers nearly as much as they do the owners of the business.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

...if all that is exchanged in his household is
between the members of the same family. There is no outside income entering Walter Williams home. Only expenses. Wouldn’t there be a day of reckoning?

Another false premise; that of the “fixed pie”.  Wealth is created by adding value, and that pays for everything, especially the wealth that socialists want to redistribute.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

Whistler, I actually agree with you. The immunity from firing many workers around the world only burdens their respective economies and hurts every one in the long term. I gave these examples as reasons why investors are so attracted to the US.

What about the analogy? Any coments?

Here’s an article on the trade deficit.

The basic fact is that there is no deficit the amount of goods that we import is balanced out by our exports and incoming capital.

So we’re getting wealthier and much of the world wants to invest with us in order to get a piece of an ever larger pie.

So suppose to stretch the analogy let’s suppose the guy produces a product that has real tangible value.  He produces more and more of it every year but it never leaves the household.  Still if the butcher ever demanded payment they’ve got far more assets to pay.  And of course the butcher isn’t going to demand payment all at once because he’d lose his best customer.

Hopefully the rest of the world continues to increase their wealth.  We’re all better off when your neighbors richer (although in the case of rising oil prices the process is not painless).

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Whistler: I agree with Nalhamid, once the ridicule and suspicians were dealt with this has been very educational. That is the benefit of blogs like this one, it can be very educational. I don’t think comments like “You obviously know nothing about economics at any level so why don’t you stop showing your ignorance and enroll into a college where you can become educated in the subject” are very helpful; and even though Robert108 can be quite condescending, nonetheless he and you and others here are able to help others not well versed in economic theory to better understand this situation.

I must ask you though, what will happen to our economy if, and I think it is really when, the Democrats fail to keep the tax cuts in place and they enact their multi-trillion dollar tax program?

No matter the age or state of health, for a military man it is always glorious to tilt at windmills, rescue a fair Dulcinea and be a gallant knight in armor in a glorious cause.

Well I’m not really an expert but I would guess that raising taxes isn’t going to shut the economy off like a faucet, but it will slowly strangle our extraordinary growth over the course of several years as investment inevitably fall off.

When you think about our continued economic growth is not only remarkable, but unprecedented.  Here we are sitting at the top and still able to grow faster most of the world. 

One thing to add, is that government doesn’t fuel growth but it sure can stop it.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Whistler wrote,

our continued economic growth is not only remarkable, but unprecedented.

compared to what?

countries in the post industrial age maybe.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Woof...compared to Akrotiri or Tuvalu. Duh.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

compared to what?

“unprecedented” means “compared to anything else”, I think.  In other words, “without precedent”.  Duh.

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.

...Robert108 can be quite condescending…

Your spin, Neiman.  It isn’t “condescending” to state the facts as they are.  How is it condescending to point out when someone is reasoning from a false premise?

The secret of financial success:

If you can’t afford it, you don’t deserve it.  Even if you can afford it, that’s no reason to buy it.