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Guest Post: Paul Ryan's Budget
Submitted by John Aziz of Azizonomics
Paul Ryan's Budget
So Romney has picked Paul Ryan for Vice President; a man with a remarkably similar “deficit-reduction” strategy to that of George Osborne here in the UK, where unemployment and budget deficits have soared, and GDP remains well off its peak.
If Ryan or his Democratic rivals really understood the budget deficit, they would understand that its huge size is a result coming primarily out of a depression brought on by excessive total debt:
As debt soared from the 80s to the 90s, tax revenues soared as the economy boomed on borrowed money. But as the debt continued to grow relative to income, the costs of the debt mountain meant that income that might once have been invested in businesses and consumption went toward debt service instead. And so once we hit the point at which debt repayment exceeded new debt acquisition, we were flung into a depression. This has had a relatively severe impact on growth; since the deleveraging hit in 2008, GDP growth fell considerably from its long-term trend (nominal potential GDP):
So with the private sector (not to mention state and local governments) who acquired so much debt in the boom now deleveraging, Federal revenue has dramatically fallen, producing the huge Federal budget deficits we see today. Of course, Federal spending was on an unsustainable trajectory before that. But without a serious plan to get America out of the deleveraging trap (there are three routes out — liquidation, inflation and debt forgiveness) all talk of reforming entitlements is meaningless.
So, does Ryan’s plan address the problem of excessive debt?
No. Ryan completely misses the point of excessive total debt, and instead paints a portrait of the problem being one of excessive public debt:
Oh no! What a scary chart! But Ryan claims he is going to make public deficits disappear! How?
Ryan intends to cut taxes; reducing corporate taxes from 35% to 25%, and introducing two new income tax brackets; one of 10%, the other of 25%.
But here’s Federal tax revenues compared to the weight of total debt:
To get private debt to a sustainable level via tax cuts, Ryan would have to cut taxes to zero for a very long time (and hope that people use their tax cut to pay down debt instead of spending it at Chipotle and the Apple Store).
The biggest problem with that? Over 75% of Federal spending is mandated by law, and so US public debt — which Ryan believes is the real problem — would soar (as has happened in Britain). Ryan might seem worried about the future possibility of massive public debt (as opposed to the current reality of massive total debt), but his plan could conceivably result in much higher public debt — after all the OMB and CBO have gotten it all very wrong before, just twelve years ago foreseeing massive tax surpluses of $48 and $87 billion respectively in 2012.
So does he have any real plan to significantly raise revenues?
Ryan intends by 2022 to have to closed enough loopholes to yield an extra $700 billion in revenue every year. That’s a lot of money. So which loopholes does Ryan claim that he will be able to close?
In his entire 98-page manifesto, Ryan doesn’t name any — but he has ruled out taxing capital gains as income, surely the biggest tax loophole of all, and one that has seriously benefited his running mate.
Ryan might talk tough on public deficits, but his own figures show that even if he can raise the revenue he claims to be able to raise (very dubious), the deficits won’t be gone for twenty years. Meanwhile, he has not even approached the subject of excessive total debt, which is the real problem.
The only policies likely to return the US to strong organic growth are those that would produce some form of debt jubilee. Neither of the major parties has any plan for that.
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Perhaps if congress started to create their own debt free money that was legal tender and they did not have to borrow it at interest, and they ran consistent surplus budgets, the problem would be solved. But this problem goes beyond deficits, it's the monetary system.
If they ever balanced the budget, it would collapse the value of the debt because the money supply wouldn't be growing fast enough to pay the coupons, since interest rates will start to rise when the flow of new "deficit money spending" ceases due to said fiscal prudence. It would be a self-reinforcing dynamic of rising coupons and rising debt. It is an irony that cutting the deficit to a surplus when the government is the debt flow creator of last resort may cause the money supply to start shrinking abruptly while the debts continue to grow exponentially and collapses in huge chunks when collateral quality goes bust.
Europe proves the point, every country that starts to cut the budget faces exploding interest payments. With fiat debt money, you must grow, or you collapse. There is no way to operate a 'balanced budget' and 'sound fiscal policy' on a macro level with interest bearing money supply.
Tyler, Leting Obama advertise here is just sick. I don't want to sign his card. I don't want to eat anything with him. I long for the day I don't hear his name or see his face. I would love it if you would simply refuse ads from both parties. These are tough times and we enjoy the site but having them pimping here just ruins it for me.
I'll sign Obama's card;... but he won't want to read what I have to write...
The obama campain sent me an e-mail a few weeks ago with a warning that when I click on the link the picture was gonna be so adorably cute! It was a pic of him and a kid with a cake or something. Then they asked for a donation.
They really are appealing to the important issues among their constituents.
Just use AdBlocker (in Firefox browser) and you never have to see ads again.
Oh, man! You just had to ruin it for me.
I was so looking forward to my Dinner with Barack...
Chicken McNuggets with Michelle's special sauce?
Or the Obama meal: order all you want and then say "the guy behind me is paying for it".
Or the W. meal- fixed it for you.
You didn't eat that.
I do use firefox so I will download that...
Now about my mailbox.. 5 fucking Mitt letters including membership card, bumper stickers etc. in three days time.
Those cocksuckers got my info from my donations to Ron Paul.
In 08 when I gave I made the mistake of putting my phone number down so we don't even answer the phone if it is a 202 area code.. This year I put a fake number so now the spam the shit out of my mailbox..Not bulk mail, but stamped letters with "2007" printed on the stamp.
Some recommendations for you:
Get a google phone number and give that (you don't even have to use it but you can check VMs if you choose and it actually is a working number in case you want to call someone from it)
Unregister your political party affiliation (you're probably registered R depending on your state if it's open or closed primary).
Request to be removed from email lists on the emails themselves and set a filter in your email inbox to eliminate anything from a similar offending sender, address, url, or any key words applicable. You can also request not to get mailers in the regular mail by contacting the senders (check online for suggestions/advice).
Thanks for the tips. As for the mailbox I'll just wait for the poastal service to collapse- shouldn't be too long.
And a few other goodies....
The difference between private and public debt ... Private debt is when you pay 29 percent to Chase, or 7.5 percent to the department of education, public debt is when Geithner is paying 0.1 percent on his T-bills. Private debt is when you are paying 6 percent on your mortgage and Fannie won't let you refi, public debt is Timmy paying 1.5 percent on 10 year Treasuries. So now, who you working for? The debt collectors or Ryan?
I think you meant the debt collectors WITH Ryan. If Ryan revamps Social Security and lowers the benefits people receive and you must still pay the amount you pay now, he has effectively raised your taxes.
"The only policies likely to return the US to strong organic growth are those that would produce some form of debt jubilee. Neither of the major parties has any plan for that."
Which is a large problem...but the disussion is starting and one way or another it will happen...by involuntary default of all or voluntarily default in increments. No government has ever been able to borrow themselves out of debt and law is only as good as the will to enforce it.
Either way it will introduce the concept of sound money again.
Maybe it will, maybe it won't. People seemed to have gotten dumber in the past century.
True, now its...gimme my debt binky!!!...waaahhhh!!!...lol.
Bury the Zionists and debt they rode in on
Meh. The US government jumped the shark a long time ago. Elections just settle the question of who gets to wear the leather jacket.
And we know who gets to wear the pink scarf.
Barney?
I thought Barney was the Color Pur....oh, you mean the other dinosaur.
Nice.
The perfect is the enemy of the good. Politics is the art of veiling your true message in the cloak of slogans and sound bites to get elected (c.f. Obama) then informing your political enemies that "elections have consequences, I won"). Just from an economic perspective, who would you want making that observation at decision-time one year from now? If it is Obama-Biden, your currency will largely resemble the one currently being used in Zimbabwe. Your health care will be delivered by a partially trained mid-level practitioner because your doctor has retired or dropped out of ObamaCare. And your parents or grandparents--given terminal morphine as sole treatment because the funds that would have gone to providing for their care had to be diverted to supporting the anchor babies of illegal immigrants. Your choice--you can't have Ron Paul so you'll sit this one out? Good luck with that. One more term with Obama and your PMs all belong to us (c.f. FDR); your farm land--Soil Bank; your taxes--suddenly you're rich, so pay your "fair share'.
Are you suggesting that Romney and Ryan are good?
only to the extent they pull "ye olde bait and switch" more effectively than "dee other guyz." amazingly we have 4 years of the Obama Administration failing to deliver...indeed "delivering the exact opposite." hmmm. i think i now know what to expect there. i wonder what the other side is up to tho?
By their fruits you shall know them. Romney's and Ryan's fruits include Romneycare, TARP, Medicare Part D, NDAA, etc.
I just love how everyone talks about "growth" as the solution. Financialization of the economy is not "growth", it is mental masturbation. The planet cannot stand much more of the other kind of "growth". The end game is closer than you think.
AZZIZ ANNOUNCES REAGANOMICS A 100% FAILURE!!!
That theory of just cutting taxes and never pay for the tax cuts is fairy tale economics.
Tax cuts is Government spending...
Debt TRIPLED then DOUBLED under Republican Tax Cut Theory 1980-1992 / 2000-2008.
Bruce Bartlett, Chief Financial Advisor To Reagan, said " We made it all up"... duh!
David Stockman, Father of Reaganomics, Dir OMB, said "Republicans bankrupted America"... double duh!
They failed to "pay for" the tax cuts by a reduction in spending. That's the key.
Here is the Ryan plan in a nutshell: By year 20xx I will be out of office and my claims of a balanced budget and fiscial responsibility will have been so far fetched it will be laughable for decades.
Would be interesting to hear what Dr. Paul has to say about this VP pick. Posts or links please.
I'm predicting low voter turnout this election. That usually means it will be a nail biter and the opinion polls leading up to the election will mean jack. Makes little difference who wins really as they cannot do much to stop the ship from sinking.
does anyone really believe that minorities, gov unions, labour unions, entitlement suckers will vote for ryan...?
get real obama will be re-elected. why endlessly debate magic underwear and 'eating the blood and body' of a risen deadman idiots....?
Ryan is among the best this country has to offer. He works hard, doesn't live off the hype of Harvard, cares about the country's future, etc..
Its just that the country has been so screwed over the past 40 years--it is probably impossible to find a long term answer. Bottom line is Obama wins because he carries the broke states like Cali, Ill, and soon to be NY. Ryan reappears in 4 years to probably lower( the then much higher) taxes we will be paying, but don't forget the US will also manage to tax the rest of the world to buy our bonds. What are taxes like in Saudi or Dubai, or Singapore or Hong Kong today?
"What are taxes like in Saudi or Dubai, or Singapore or Hong Kong today?"
Anywhere from 0 to 20%. http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
Its not so much taxes as inflation. Oil producers have at least a 5% inflation rate with HK not far behind.
the us will eventually convince its lackeys in all those places to eventually raise taxes. not only to raise funds for more worthless us treasuries, but to still keep us somehwat attractive for investments after a long prolonged tax hike here. It'll be a long process. I bet taxes will rise in asia and the middle east substantially over the next 2 decades. Look at it as a "protection tax"--just like the gambinos were garnering
Inflation is the hidden tax, particularly if your... ahem... "investments" yield real domestic rates of -3% or less.
the us will eventually convince its lackeys in all those places to eventually raise taxes. not only to raise funds for more worthless us treasuries, but to still keep us somehwat attractive for investments after a long prolonged tax hike here. It'll be a long process. I bet taxes will rise in asia and the middle east substantially over the next 2 decades. Look at it as a "protection tax"--just like the gambinos were garnering
Ryan is a lowlife politician and nothiing more.I work hard at getting blow jobs doesnt mean a thing. He works for the wrong causes.
so the question is: what are some better options (countries) for where to live? EU is out. AU is out. Cent.Amer is going to be a worse banana republic. Altho Panama might be okay. Not Africa.
Leaves the Pac.Rim. Japan is out. Thailand? Maybe Singapore?
Lets meet in Iceland, Norway or New Zealand - or at least maybe Canada, Switzerland or Finland..
FACTS: whatever your political persuasion is, to get the debt down to manageable levels (~ 50% of GDP) there will have to be a 1.5 Trillion or 1,500 Billion ANNUAL adjustment to the fiscal budget for at least 30 years!!
Any combination of revenue increases, spending reductions, or program eliminations that add up to 1,500 Billion PER YEAR will be required to get the house in order, OR the Bond vigilantes take over, spike interest rates to the moon, the dollar crashes, inflation hyper accelerates, and the Dollar no longer the world's reserve currency.
It isn't about politics, folks, that luxury has passed us by a long time ago.
Do something for once for your children and grandchildren and get prepared to make some sacrificies.
Its all about the math, and you can't escape it.
raise the price of oil ten fold. get out of the ethanol business would be a good start. probably too late tho. don't know if you can have a "selective inflation" either. will say this...if the price of gold surges again "that really could be the end" because that provides no tax revenue to the government at ANY level....not only that but "it forces that same Government to pay for all the wars, etc..." because it turns over all the power to finance over to the banks. we shall see...should be interesting. here's your sponsor for the election in case you're wondering: http://adland.tv/commercials/alcoa-fantastic-finishes-alcoa-cant-wait-al...
It's amazing how the status quo have managed to almost wrap up this election.
Obama's plan (paraphrased)... over 10 years. $1 trn deficits for 9.5 years and then a magical $9.5 trn cut in the last 6 months, 6 years after he leaves (if he gets his 2nd term).
Romney/Ryan plan (paraphrased)...over 10 years. $950 bn deficits for 9 years and then a magical $8.5trn cut in the last year.
Then both Reps and Dems can fight over $50bn in 'cuts' a year.
Romney is complaining about budget deficits but wants to go to war with Iran, add 100,000 troops and build 6 ships a year. Each ship in the navy now runs anywhere from $500m to a $1bn. So 100k troops ~ $20bn + ~6bn in ships + ~500m+ operating those ships ~ $26.5bn+ (and i'm being very generous here) a year he wants to add to an already overbudgeted department of war ($607bn), and somehow these are 'cuts'.
Those who receive from the Govt. (students, elderly, poor,disabled, unions) vote for Obama. Its amazing the election is even being held. No one cares as long as the Govt keeps paying ....deficits do not matter until its too late. Let Obama try to kick the can down the road another 4 years.
Those who receive from the Govt. (students, elderly, poor,disabled, unions) vote for Obama. Its amazing the election is even being held. No one cares as long as the Govt keeps paying ....deficits do not matter until its too late. Let Obama try to kick the can down the road another 4 years.
I have a better idea. How about admitting the U.S. Government is a ponzi scheme and shutting it down? How about not stealing anyone's money and stop calling it a "loophole" when someone figures out a way not to get ripped off by a bunch of goons who think they own the productive capacity of every living human being that falls within their fenced off area they call a "nation?"
It's not about how to fix this rotten system. It's about transitioning to a stateless society that doesn't have arbitrary rulers pillaging society while simultaneously convincing them its in their best interest.
ONE TERM ONLY !!
Congress -- 4 years
Senator -- 8 years
President -- 6 years
GET THE MONEY OUT OF POLITICS AS MUCH AS POSSIBLE
...and in the beautiful country of Argentina:
Since 1950, Argentina has had five different currencies lasting from two years to 20 years. In every case, inflation eroded the value of the currency until it was devalued and then replaced. In 2001, Argentina suffered a massive financial crisis when the government froze bank accounts and devalued the pesos from 1:1 with the US Dollar to 4:1, effectively reducing the wealth held by Argentines by 75% overnight in what is known as the Corralito (small corral).
Fast forward to today and you find a people that are mistrustful of banks, mistrustful of their currency, and inclined to stash physical US Dollars in safe deposit boxes, under mattresses, and wherever else wealth can be stored out of reach of the government. But holding dollars does not protect you from inflation.
http://www.testosteronepit.com/home/2012/6/2/argentina-inflation-all-i-e...
Budget? What is that? 1200 days since the last one. HOPE
Budgets? We ain't got no budgets! We don't need no budgets! We don't have to show you any stinkin budgets!
https://www.youtube.com/watch?v=MsVi2RqE7ek
Dear John,
Take a serious look at the dipshit in the White House now, and please explain to me why you aren't climbing the fucking walls with his socialist bullshit and spending us into oblivion. What, 'cause Chalky is black you won't criticize the most inept Preeezy in American history? Fact is anybody is better qualified than the telprompter we are currently cursed.
http://vegasxau.blogspot.com
The Dow has always been a strong indicator of change of presidency. This weekly goes back to 2004 - Bush's re-election.
http://bullandbearmash.com/chart/dow-jones-industrial-average-weekly-aug...
If markets hold (unlikely), Obama is in. When markets crash, Ryan's cost cutting mentality will be welcomed...and necessary.
Eddie Haskel and Eddie Munster 2012!
America, Fuck Yeah!
Why is the "debt" an issue in this campaign?
Woodrow Wilson gave the Wall Street Boy's the power to create money at interest 100 years ago, and they wiped out the dollar, stole all the assets, and made us all slaves.
I say, kick the bastards out of Wall Street, default on the debt, fire the Federal Reserve, take back sound money WITHOUT INTEREST, and start to actually make stuff here in America again.
Problem solved.
Guess John Aziz missed it. Problem is spending, not revenue. As long as John spews crap like this, I'll stop reading such dribble.
"In his entire 98-page manifesto, Ryan doesn’t name any — but he has ruled out taxing capital gains as income, surely the biggest tax loophole of all, and one that has seriously benefited his running mate.
Ryan might talk tough on public deficits, but his own figures show that even if he can raise the revenue he claims to be able to raise (very dubious), the deficits won’t be gone for twenty years. Meanwhile, he has not even approached the subject of excessive total debt, which is the real problem.
The only policies likely to return the US to strong organic growth are those that would produce some form of debt jubilee. Neither of the major parties has any plan for that."
It works from both ends. The problem is deficit, and deficit is constituted from both spending and revenue.
If the economy grows fast you will get a lot of new revenue.
You cannot cut 75% of spending (i.e. non-discretionary) without repealing a lot of laws. That would take a lot of time, and will be met with the most fierce resistance.
So if you want to balance the budget, you have to work on revenue. If you don't want to raise taxes (and I know I don't) you have to work so that the private sector can generate organic growth. That requires a solution to the problem of excessive total debt.
I love this site but sometimes I wonder if some of you live in la-la-land. Yes they are all criminals to just slightly differnet degrees. We should be wondering about our fellow citizen rather than crying about the idiots that are elected by them to do their bidding.
While Ryan's plan doesn't go even a fraction far enough to solve the problems, everyone knows that he will be branded the most hard-core, heartless, old-person murdering, child-food-from-mouth-grabbing, right winger that has ever run for office. and the sheeple will believe it.
So what do we have here? Another "Guest" blogger who offers his own brand of economic engineering. How exactly should the govt "reduce private debt"? Of course, this guy is the One we have been waiting for to manage us to the promised land. Its always one set of masters or another.
Why do I feel like this is a Dan Quayle moment?
that graph is wrong, it will take till 2040 for debt to be 200% GDP?
In summary:
"But without a serious plan to get America out of the deleveraging trap (there are three routes out — liquidation, inflation and debt forgiveness) all talk of reforming entitlements is meaningless."
Historically, we have chosen inflation.
Remove the distinction between capital gains and ordinary income from the tax code. There is no longer any justification for it.
and while your at it Karl add in a wealth tax because that should really cause the rich to leave. Stop the spending binge.
I agree with the article that we have crossed the Rubicon concerning debt; namely it will take some combination of all three (default, inflation, and forgiveness) to get out of the rut.
While a fourth option of growing our way out is possible (i.e. Paul Ryan) it would take the equivalent of what the industrial revolution did for Britain’s past debt problem. For example a revolutionary break through in energy production (think Star Trek, a replicator in every home) would do it for the USA and the World. Not impossible but not very likely IMHO. So while growth could help it will likely not be near enough.
I’ll say one thing though; at least they recognize we have a problem brought about by 100 years of Socialist and Keynesians in control even if their solution won’t work either. Obama can’t do this because it strikes at the very foundation of his Statist worldview. Rather the next President/Vice President will be in charge of managing the emergency landing brought about by a hundred years of Socialism/Cronyism powered by debt base fiat money.
So cut these guys some slack at least they recognize we have problem, a big improvement over the current crew.
Maybe with a little advice from people who actually understand this problem we can at least get a steady hand at the controls in order to softening the landing.
So who do you want at the helm, someone who is completely oblivious to the problem or someone who at least recognizes we have a serious problem but doesn't yet have solution? Hopefully we have a few indivuals on this board that can get in front of them.
It's amazing how little Liberty minded a person needs to be to excite today's conservatives. Yeah, voting for that Bush prescription drug program was fiscally prudent wasn't it Ryan?
While Ryan is preferred over Romney, he's only the VP choice, so a big MEH from me. It's too late anyway to pull the country out of the death spiral that it's in. Very sad. :-(
@ John Aziz: You write: "The biggest problem with that? Over 75% of Federal spending is mandated by law, and so US public debt — which Ryan believes is the real problem — would soar"
Either you do not understand how this works or you are intentionally being stupid/negative. We can draw our own conclusions.
The tax rates are "mandated by law", too. So in order for them to change, the law has to change. As would be the case with the mandatory spending. Sure it is going to be hard to touch SS, Medicare, Medicaid, but it is hard to change the tax code, too.
This shit is bad enough without dumping false gas on the fire, man. You are better than that.
Yeah, I'd rather work on entitlements without being in a depression. If you wanna kick people off welfare (and I agree welfare reform is necessary) you need a growing economy so that people have jobs to go to. Being in a depression is a crappy place to work on entitlements from, and you will end up in a position like the UK of rising deficits, rising unemployment, etc.
Quite magnanimous, though sometimes life doesn't grant one the indulgence of timing. Also, 'mandated' or not, entitlements are merely privileges, not rights. What one group of monkeys could enact, another could undo~ for example already social security payments can be taxed, potentially at any rate.
The biggest problem with that? Over 75% of Federal spending is mandated by law
How is this a problem? Change the law, problem solved!
I agree with the author - a global debt jubilee and a nullification and voiding of all CDO's/swaps is required. Hit Reset:
Back here at home in US:
The most obvious Ryan Etch A Sketch Moment when admonished by the Catholic bishops for his admiration for Ayn Rand, he thought he could rebirth himself, disavowing Rand and embracing Thomas Aquinas - Quite a dramatic swing in philosophy - sound familar - yes, a perfect match. What a joke America has become!
John Aziz's analysis and commentary are, I believe, accurate and correct. Good job.
The Obama plan is better - no budget, kick the can down the road. Keep on charging the credit card until it gets declined.
This is great... Romney found a male Sarah Pailin. The USA can only get the government it deserves, which is not much.
P. Ryan = Sarah Palin sans the moose meat
P. Ryan = Sarah Palin sans the moose meat
Whoever promises to arrest Bush, Holder, Obama, Hillary, Blankfein, Bernanke, Dimon, Schumer and the rest of them is who I'm voting for.
Arrest them. Arrest them all.
"Over 75% of Federal spending is mandated by law"
Solution is simple, UNMANDATE it!
Obama is very smart not to have a budget. That way nobody can criticize it, and he can make whatever claims come to mind.
Remember this?
Obama budget
Senate 99-0 AGAINST
Congress 414-0 AGAINST
Bipartisan unity at last...Folks, I want you try to understand something.
Charting something out to "2080" or something like that is an exercise in gross stupidity at this point. The system is unraveling RIGHT NOW, do you understand?
At most we have a few decades of extend and pretend, at most. Personally I expect the whole thing to come crashing down sometime near 2020 or thereabouts.
So forget all these charts that try to project finance or demographics or this or that on out to infinity. Nobody knows what the fuck is going to happen.
Obama wins. Romney could not get Ron Paul on board, because Romney is exactly what Ron Paul is campaigning against. Paul takes the rational conservatives with him and splits the hopium 3 ways, like Ross Perot did. Add to the mix the obvious vote fraud over the last 12 years by both sides and the ongoing sovietization continues.
Unless Ron Paul gets the RNC nomination or goes indie, this circus is over. Whats the book in Vegas? They are good with this kind of stuff...
The Pelosi Plan
1. More food stamps.
2. More unemployment insurance.
3. More bullet trains to nowhere.
Hey muppet Pelosi's not running for VP.
The biggest welfare cases are the 1% who get agricultural subsidies (checks from the taxpayer) for holding large blocks of land "out" of ag production, so they can use for their actual purposes (private hunting preserves). Like Charles Schwab.. gets a couple million a year for agreeing not to grow rice.
The military contractors get hundreds of billions.
Members of Congress who abuse their offices to enrich themselves on insider trading. Real estate.
The lobbyists who enable the Washington games.
The banksters who control the regulators and fix the game for their own profits and dump the losses on the rest of us.
These are the true welfare frauds.
So many of you claim to be free-market libertarians but its so obvious that Obongo's internet propagandists have hijacked the dialogue and poisoned the forum.
Debt jubilee???? That is the most idiotic thing I have ever heard.
And what does Paul Ryan propose to get interest rates back higher so savings accounts can start to grow again? Or are we going to be forever in a negative savings rate growth plan so we are forced to go gambling in the markets against the big guns who are great at stripping your savings one dollar at a time.
What does a 5 year CD currently pay? Even Suzy Orman can't recommend saving for your retirement with CD's and savings accounts. Raise interest rates and the country goes down like the titanic so we are at perpetual ZIRP forever and the only way savers can save for retirement safely and get any kind of growth is if government subidizes our savings interest rates with taxpayer funds. Otherwise its lose purchasing power with negative yields or go gambling.
Whats the plan by the republicans or democrats. Oh, thats right, their retirement is all set for them with our dollars. They have nothing to worry about and if hey need a boost they will just go get some inside information to make some quick profitable trades. The American dream as a politician-enter congress broke and come out a millionaire. Can anybody name a politician who has left congress poorer then when they arrived?
zero interest rates forever is exactly right, even the smallest inflation becomes an inescapable tax, but the banksters wont be happy after they have crushed all the equity in peoples homes, their cars, their savings, their jobs, next targets - 401k accounts
someone else made a brilliant post under another article - this election is GS vs GS and it is a sideshow for people who have no firm grip on reality
100 million people on welfare and 15% u-6 unemployment, yet the news media still spoon feeds the pablum of pointing the finger at europe, which is all very convenient to divert atttention away from how bad things really are in this country
What is Biden's plan?
Here is mine:
Stop all aid of any kind nationwide to illegals, state ande federal, and no citizenship for illegals foals. First offense for illegals is 1 year in work farm. Second, five years.
Means test for SS and medicare ($5 million in total assets is cut-off), lower the medicare age 55 and scrap Obamacare.
Cut foreign aid by 75% for 10 years, the cuts go to pay down the deficit.
Turn all state and federal prisons into self sustaining labor camps... no work, they live outside and get only bread and water... all prisoners have option to give up US citizenship and be deported to haiti or Somolia.
End all "Free trade" agreements, tariffs on all US corporations who have more than 20% of total jobs overseas. tariffs on trade cheats like China.
have commission to cut defense by 33%, end all foreign wars and interventions... new ones by congressional vote only.