Krugman on CNN now: kick the can down the road (1 Viewer)

Cosmic201

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It's actually not a horrible idea.

Inflation is typically 2-3% a year.
The US can sell bonds right now for about 2% for a 10 year bond and about 3% for a 30 year bond. Meaning we'll be paying basically nothing for this money.


To me, that seems like we should be borrowing more money and putting that money into rebuilding our nations infrastructure now.
 

TechDawg09

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Unemployment is a much bigger issue than the debt right now, so if that's his argument, I agree with him.

If we can get the unemployment rate closer to 5%, and curb the increases in healthcare costs, the debt will be much easier to tackle later on with increased revenues and lower spending on Medicare and Medicaid (without a voucher a system).
 

blackadder

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Lol.

It will never get dealt with until the bottom falls out.

Politicians don't withdraw goodies from voters and world policing doesn't get cheaper...meanwhile the middle class squeeze continues.

You're kidding yourselves if you think, in a world where we strive to send our middle class jobs to China and India, that there is going to be enough broad based growth to reduce that debt, especially if interest rates return to levels set by market forces.

It's more likely that over the longer term the Fed's plan is to inflate away the debt with a weak or devalued dollar, which should cheese off our creditors nicely.
 

J-Donk

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Lol.

It will never get dealt with until the bottom falls out.

Politicians don't withdraw goodies from voters and world policing doesn't get cheaper...meanwhile the middle class squeeze continues.

You're kidding yourselves if you think, in a world where we strive to send our middle class jobs to China and India, that there is going to be enough broad based growth to reduce that debt, especially if interest rates return to levels set by market forces.

It's more likely that over the longer term the Fed's plan is to inflate away the debt with a weak or devalued dollar, which should cheese off our creditors nicely.
GDP will continue to climb. I also don't see a problem with a infrastructure/science stimulus now. Why those two? Because they return more dollars back into the economy for every dollar you spend.

All those outsourced jobs are coming back as automated factory production. China has some huge huge issues. They have a housing bubble that has to probably pop soon. On top of that they have worse corruption then we do.

We are in a unsustainable mode right now. We have to figure out what we really want to do with support to retirees, and income inequality. Once, that's done deficit levels should return to normal. We really need to start a discussion about the near future(15 years) when all menial labor starts to be automated. STEM needs to have even more emphasize then it does now.

America always seems to find a way to right the ship. I am sure we will find a way out of this situation as well. We knew for a long time that we had a massive population boom that would retire. It's funny to see everyone freak out over it.
 

dapperdan

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Lol...Krugman is recommending, essentially, the same thing that Bernanke is practicing. No exit strategy, let the next guy deal with it. In Bernanke's situation, he's got retirement all lined up for next year. Upcoming inflation is: Not. His. Problem.

Rick Santelli's Keynesian Bloodletting Analogy is the perfect analogy. When Stimulus Spending I fails, go for Stimulus Spending II, and then when that fails, well, it must've failed because there isn't enough Stimulus Spending, time for Stimulus Spending III. Or, in the Federal Reserve's case, substitute Quantitative Easing for Stimulus Spending. Rinse and Repeat. Keep digging the hole deeper.
 

kevinh

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You've got to wonder--why isn't any politician or pundit coming under fire for kicking the can of the unemployment crisis down the road? It's a much more urgent crisis--people need to eat today.
 

bearze34

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Lol.

It will never get dealt with until the bottom falls out.

Politicians don't withdraw goodies from voters and world policing doesn't get cheaper...meanwhile the middle class squeeze continues.

You're kidding yourselves if you think, in a world where we strive to send our middle class jobs to China and India, that there is going to be enough broad based growth to reduce that debt, especially if interest rates return to levels set by market forces.

It's more likely that over the longer term the Fed's plan is to inflate away the debt with a weak or devalued dollar, which should cheese off our creditors nicely.
That is what we are doing now.....monetizing our debt. Who has ever heard of a govt. buying the majority of its own debt? While they will argue the Fed. isn't the Govt., the money is and that is where the money resides hence the power. It cannot go on forever, except for in the delusional world of the statist. Wait until they come to the Bank for our deposits because the dollar is worthless. People will howl but, rest assured, they will blame the NRA or racism or some such nonsense. Have you noticed that the European Elite are already backtracking on the statement that it is only a one time thing in Cyprus?
 

Cosmic201

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I just can't get over how much of a stiffie some of you seem to get at the idea that the United States is going to fail (according to your views).
 

FuzzyDunlop

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Some people just really want the fallout to happen under Obama's watch.

I guess it would be much easier to win the next election that way.

Don't get me wrong, I'm sure there are plenty of people on the other side, that are trying their best to make sure that it happens under another president's watch. But with the unemployment problem this country has been going through, it does make some sense to kick the can down the road a bit.
 

Oye

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People will howl but, rest assured, they will blame racism or some such nonsense.
awful

do you have anything else to do but play the race card?

In a thread that has nothing to do about race, you bring up racism.

Just as you did, a few days ago, in a thread about food additives, again, nothing remotely about race until you try and force it in a thread where it clearly doesn't belong.

superchuck500 said:
But what do we do when we know that these products (soft drinks, junk food, fast food) actually pay a lot of money as they forever chase in their laboratories the optimum formula that capitalizes on how our brains react to flavor and ingredients with the goal of making food addictive?
Racism. It is so obvious. Why can't anyone see it. If we could just start the discussion it would become clear to all.
you need some more cards in your deck

Or might I suggest an entirely new act.

This one is tiresome.
 

dapperdan

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You've got to wonder--why isn't any politician or pundit coming under fire for kicking the can of the unemployment crisis down the road? It's a much more urgent crisis--people need to eat today.
It's one of the principal criticisms of Obamacare; the tradeoff of universal healthcare versus creating barriers to employment and raising long term structural unemployment.
 

thefredman63

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gotta love those progressives....take no responsibility for their failures, and let them be addressed by their children and grandchildren, how sad it must be to be one:jpshakehead:
 
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IntenseSaint

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This prolonged stimulus reminds me of the governments idea to tie health care to employment. They thought it was a good idea at the time but it turned out to be a bad decision.

Sometimes the best intentions have the worst results.

But it's the intention that really counts right?
 

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