Looks like Cantor looked at the bad poll numbers the GOP got after the debt deal, and is now trying to run for the hills.
I guess the one nice thing about the GOP winning 98% of what they want in negotations with the White House, is that they get to reep what they sow. It's too bad for America though. The rest of us just live here.
The second round of the debt deal is already done. The two sides are pledged to disagree, so it's a total farce. This will trigger round 2 of automatic cuts with no tax increases. Why has nobody yet figured this out? This turkey was baked on Day 1. The Dems, who totally caved, knew this as did the Reps, who were to smart to say anything.
blame the big nasty reps. Obama should have gone the 14th amendment route, taken the chances of being impeached, though I have no idea what the basis would be. Then let Congress fight it out over the budget. It's sort of like a kid who has to have his band-aid ripped off, and mom doesn't what to hurt the kid, so she has dad do it. There's going to be some pain, mostly for the middle and lower class, and Obama and the dems don't want to take any responsibility for it.
don't make me go all ng on you and start shouting, but there are no cuts anywhere. They have only agree to slow increases, not cut a Goddamned thing.
The budget is going to continue to grow, spending is continuing to outpace revenues and no one but the Tea Party seems to give a fuck. You can raise taxes all you like, but you will never reduce the deficit, much less the national debt until you get a handle on spending.
I guess when you are in Washington an increase of seven TRILLION fucking dollars in the national debt seems like progress. You can take every last fucking penny from "rich folks" but you still aren't going to make a dent in the deficit until you rein in spending.
We've talked about the fact that the "cuts" are simply reductions in money that would have been spent, not cuts from today's spending levels. But please stop ranting about that and wrap your mind around my central point: the debt "deal" is a farce. The committee is pre-ordained to disagree and thus do nothing, with the baked-in result that it will trigger a new round of reductions in proposed spending. Thus, the Dems have already lost because they pussied out on the deal they made to avoid default. It was always a sham. That's the point.
the dems and everyone else it seems are publicly ceding "defeat" to the Tea Party, but are actually the big winner.
Obama is the biggest winner of all, he gets his money, doesn't have to cut one single red cent, AND gets all this political capital by blaming the Tea Party for nonexistent cuts. What a fucking deal. Of course the biggest loser is the American people, especially the ones that are going to suffer when we become Greece. I'll be long gone by then, but it doesn't mean I don't care, it just means that I won't go down with the ship. If you go down with a ship that catches you unaware, that's one thing. If you have plenty of advance warning that an iceberg is dead ahead, and you don't get off the ship when given the opportunity, it's your own damn fault.
Obama is not "the big winner." What's likely to happen is a smaller budget won't be able to keep us from a double-dip recession. It may be hitting now, but certainly will by year end. With a weakening economy, he's in big trouble. Remember the second part of the Great Depression that began in 1937? (LOL! Even I am not old enough to remember that). It was caused by a misguided reduction in expenitures the year before. Those who don't learn from the past are condemned to repeat it.
As for further down the road, you may be right. But now is not the time to be reducing expenditures a great deal. Keep in mind that, in a recession, tax revenues drop, too.
We barely have 1% growth, and remove govt spending (right, wrong or indifferent), and you will throw the economy back to negative growth. And this bothers the fuck out of me, because it could have been avoided.
Get ready for something from Bernanke and crew in late August. Call it QE3, but get ready for a huge purchase of 10 and 30 year bonds. Not sure if it will change the direction of the economy, but it will help equities. Also, get ready for another round of stimulus. The first $800B in 2009 didn't work, so let's try it again and throw in a govt run infrastructure bank.
Throw in a Bear Stearns or Lehman Bros scare going on in Europe, and voila, we are all fucked including Obama.
And while we are at it, let's tax the rich. That makes perfect sense in this climate....NOT! Oh, and by the way, Buffett is an idiot. Do the math and everyone will realize the guy is disingenuous asshole. Sorry, this last rant has nothing to do with what you and GaG are debating, but it just pisses me off. The guy paid a 17% effective tax rate, and paid a little over $6M in tax. So his taxable income was $40M in 2010. He is worth $50B. If he makes a lousy 3%, then his income is $1.5B, not $40M. It's called unrealized capital gains. And what the fucker dies, all the money goes to Bill and Melinda Gates. This is why he is a disingenuous asshole. And Obama gets a little hard-on on this sound byte.
-- Modified on 8/18/2011 8:22:16 AM
Congress will never pass it.
Markets hate lack of fiscal discipline, but they hate lack of growth more. I know, the market is bi-polar. First, QE3 is a form of stimulus, and it doesn't need Congress. Second, there won't be another $800B stimulus, but there will be a targeted stimulus around tax cuts (payroll) and tax cuts. That's still a form of stimulus, though the White House will not use the word stimulus, kind of like revenue enhancement vs tax increase.
they just take it as it comes. US equities on the long side may not like what they see so the money just flows to shorts, gold, alternative curriecies and the like.
nevertheless, i do agree that whatever form it takes, the central bankers will do whatever they can to pump up the continuing ponzi scheme. if for no other reason than to protect their own investments.
That has to be the most overly simplified explanation of the second recession of the 1930s ever put forward.
There was certainly a contraction in the money supply and GDP but the 4% reduction in government spending is way down on the list of reasons why. Other important ones are:
1) Increased income tax rates
2) Introduction of SS tax (minor reason)
3) Government regulations requiring banks to more than double their reserves
4) Inflationary government regulations increasing the cost of labor, NRA regulations, favoring of unions which were taking hold.
5) Overall uncertainty and fear of increased government regulations. Fear was realized when for example in 1938 minimum wage was introduced.
"You can take every last fucking penny from "rich folks" but you still aren't going to make a dent in the deficit until you rein in spending."
That's strange. It begs the question, just how broke are rich folks these days? Could we ask Reagan's old budget director? To quote a lousy POTUS, yes, we can.
http://www.youtube.com/watch?v=TtDWDbpRGGQ
Hmm. 40 trillion sounds like a lot of money.
According to the CBO, the current budget deficit is 1.5 trillion.
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/26/AR2011012602971.html
And the US national debt is 14.6 trillion.
http://www.usdebtclock.org/
So...if we did take every last fucking penny from rich folks, then we'd have....let's see....40-(1.5+14.6)... a 24 trillion dollar surplus and zero deficit, all without cutting a damn thing.
I'm sure at any moment now, Nicky will accuse you of playing loose with the facts, and you'll declare yourself to be a liar, GaG.
of people's net worth?
yo Fidel, whazzzup?
Just pointing out that GaG got his facts wrong. I'll be nice, and I won't call him a liar.