Posted on 11/23/2011 10:53:33 AM PST by Qbert
In other words, they’re going to waste everyone’s time.
(The Hill) – After failing to reach a deal to reduce the deficit, the Senate will move next month to take up legislation that could add more than $400 billion to the deficit.All of the proposals, such as the extension of the payroll tax cut and unemployment insurance, are popular but come with no agreement on how to pay for them.
Senate Democrats will go on offense next week by forcing Republicans to vote on extending and expanding the payroll tax cut, which accounts for $240 billion of the tab, according to Democratic and Republican aides. Lawmakers will take up the legislation after completing work on the Defense authorization bill.
We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.~Winston Churchill (1874-1965)
Actually the Chinese got smart and stopped buying our debt. The only real buyer of US debt right now is the Federal Reserve. So we are essentially borrowing the money from ourselves....
That’s balls! I actually marvel at the enemy’s self-assertiveness.
Best prepare for hyperinflation; ain’t nobody going to stop it now.
But I guess that’s been the plan all along.
“Actually the Chinese got smart and stopped buying our debt. The only real buyer of US debt right now is the Federal Reserve. So we are essentially borrowing the money from ourselves....”
So if we defaulted, we would be no worse off because regardless we cannot pay it back.
Hyper inflation will come when the fed starts monetizing the debt, buying it back with greenbacks. Those IOUs in the trust funds will be the beginning...The bonds used to redeem worthless housing bond paper, when bought back, will seal the deal.
Well, not so much. Right now, the USD is the world reserve currency and we can buy all the imports we want on the cuff since everything is priced in dollars and we just print what we need. If we screw the pooch and default, that will end, and we will have to actually pay for all our imports with something that has value. THATS gonna hurt.
Tax cuts are NOT a cost (especially when you are leaving them as they are). Spending IS a cost.
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