Bad for business
By Ellen Brown
"It used to be that when the chairman of the United States Federal Reserve spoke, the market listened; but the chairman has lost his mystique. Now when the market speaks, politicians listen. Hopefully they heard what the market just said: government cutbacks are bad for business. The government needs to spend more, not less. Fortunately, there are viable ways to do this while still balancing the budget."
"The markets were supposed to rebound after the United States debt ceiling agreement was reached last Monday. But even before downgrade of the US debt rating, the market apparently understood what politicians didn't: that the debt deal was a death deal for the economy. Reducing government spending by US$2.2 trillion over a decade, as congress agreed to do, will kill any hopes of economic recovery. We're looking at a double-dip recession"
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"The problem is a shrinking money supply
"The markets are not reacting to a "debt crisis". They do not look at charts 10 years out. They look at present indicators of jobs and sales, which have turned persistently negative. Jobs and sales are both dependent on "demand," which means getting money into the pockets of consumers; and the money supply today has shrunk."
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"Creative ways to a balanced budget
If congress must maintain its debt ceiling, there are other ways to balance the budget and avoid a growing debt. Ron Paul has brought a creative bill that would eliminate the $1.7 trillion deficit simply by having the Fed tear up its federal securities. No creditors would be harmed, since the money was generated with a computer keystroke in the first place. The government would just be canceling a debt to itself and saving the interest."
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"...having the Fed tear up its federal securities"
America's solution may not be our solution, but the fact remains.
If we cut any more money from the economy, we will enter a deflationary spiral.
What the professionals associated with the building industry are experiencing now, other sectors of the professions and the wider economy may soon experience if the government proceeds with its proposed austerity measures.
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"...having the Fed tear up its federal securities"
This is a form of debt forgiveness.
I met with one of my bank managers the other day, agreeing our schedule of payments for the next year in advance and mentioned debt forgiveness as possibly being one end of this road we're on, with all countries and banks acting together. I pointed out that the alternatives were either war and a war economy OR default.
He didn't blink.
"Selling debt forgiveness to the banks would not be easy," he said.
"Is there a better idea at the present time?" I asked.
"I can't see any," he said.
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The economy will fail if we seriously reduce expenditure.
The current levels of debt are unsustainable.
We need to balance the books sustainably.
We also need to address the debt.
Logical rebuttals only please.
No straw man arguments.
ONQ.
By Ellen Brown
"It used to be that when the chairman of the United States Federal Reserve spoke, the market listened; but the chairman has lost his mystique. Now when the market speaks, politicians listen. Hopefully they heard what the market just said: government cutbacks are bad for business. The government needs to spend more, not less. Fortunately, there are viable ways to do this while still balancing the budget."
"The markets were supposed to rebound after the United States debt ceiling agreement was reached last Monday. But even before downgrade of the US debt rating, the market apparently understood what politicians didn't: that the debt deal was a death deal for the economy. Reducing government spending by US$2.2 trillion over a decade, as congress agreed to do, will kill any hopes of economic recovery. We're looking at a double-dip recession"
-----------------------
"The problem is a shrinking money supply
"The markets are not reacting to a "debt crisis". They do not look at charts 10 years out. They look at present indicators of jobs and sales, which have turned persistently negative. Jobs and sales are both dependent on "demand," which means getting money into the pockets of consumers; and the money supply today has shrunk."
-----------------------
"Creative ways to a balanced budget
If congress must maintain its debt ceiling, there are other ways to balance the budget and avoid a growing debt. Ron Paul has brought a creative bill that would eliminate the $1.7 trillion deficit simply by having the Fed tear up its federal securities. No creditors would be harmed, since the money was generated with a computer keystroke in the first place. The government would just be canceling a debt to itself and saving the interest."
-----------------------
"...having the Fed tear up its federal securities"
America's solution may not be our solution, but the fact remains.
If we cut any more money from the economy, we will enter a deflationary spiral.
What the professionals associated with the building industry are experiencing now, other sectors of the professions and the wider economy may soon experience if the government proceeds with its proposed austerity measures.
-----------------------
"...having the Fed tear up its federal securities"
This is a form of debt forgiveness.
I met with one of my bank managers the other day, agreeing our schedule of payments for the next year in advance and mentioned debt forgiveness as possibly being one end of this road we're on, with all countries and banks acting together. I pointed out that the alternatives were either war and a war economy OR default.
He didn't blink.
"Selling debt forgiveness to the banks would not be easy," he said.
"Is there a better idea at the present time?" I asked.
"I can't see any," he said.
-----------------------
The economy will fail if we seriously reduce expenditure.
The current levels of debt are unsustainable.
We need to balance the books sustainably.
We also need to address the debt.
Logical rebuttals only please.
No straw man arguments.
ONQ.