Monday, August 01, 2011

Trouble in Paradise?....

Am I psychic or what? No cuts no new taxes lol; Unless you count the 4 billion the first year. (read that again as it's not a typo.)

 Repeat after me: the government has been bought by the guys who got us into this mess and are taking home multimillion pay checks. All the "cuts"would come out of their pockets because that's pretty much where the money is. And they own the politicians in Washington! Ta da!

Rocket science, right?

But , as I've been trying to explain, budget cutting during a Depression is nuts! Let alone taxing me and you because rich people, unless goofy, pass taxes down by raising prices or cutting employment and we get it in the ass.

In the 80's Reagan cut out a little waste and gave everybody a tax cut and got us out of a severe recession and ran the largest budget deficits in history! Then we didn't have our middle class jobs "outsourced" overseas. Today we don't make much and there is little capacity to put all those government educated kids to work at any thing like a real wage.

Does anyone in this country believe that our high school grads, let alone drop outs, can compete with illegal Mexican labor and contribute to the economy and pay our Social security?

Don't expect the deal in Washington to do anything but prolong the disaster.

Of course, it's all Bush's fault!!!

P.s where did the 15 to 20 trillion in stimulus go? Let alone where in the Hell is your home equity disappeared to? Who got the money? And what the fuck does my Social Security check have to do with it!!!!!!!!

Demand Side Blog: L. Randall Wray asks “How long until the fall of orthodox macro?”
And, boy-oh-boy have we got a Big Bank and a Big Government! Together, the Benny and Timmy tag team have spent, lent, or guaranteed $25 trillion in the name of Uncle Sam. And that still is not enough. “It” is still happening.

The problem is that most of this was done by the Big Bank Fed, aimed at helping financial institutions—trying to prop up their worthless assets. In short, it was based on the theory that we need Money Manager capitalism and that the only hope is to generate another bubble.

It won’t work. Financialization is the problem, not a sustainable economic strategy. We need to turn instead to an updated Keynesian-Minskian New Deal based on jobs, growing wages, consumption—especially public consumption, constrained and downsized finance, and greater equality. Monetary policy also has to be downsized, while fiscal policy has to play a bigger role. Not fine-tuning but a positive and permanent presence to counter and guide and supplement the private purpose.

More importantly we’ve got to formulate theory applicable to the world in which we actually live—not one in which imaginary representative agents allocate resources along an optimal consumption path.

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