How the Financial Collapse Would Happen in an Obama Second Term

American Thinker ^ | 09/12/2012 | Steve McCann

[SeekAndFind]

RE: Reagan never “gutted” spending, though he had a deal with Tip O’Neil to decrease spending in exchange for some tax increases (O’Neil lied).

Papa Bush did the same thing when he broke his “Read my lips” pledge. Result: Tax increase, no decreases in spending. See a pattern here?

[arthurus]

He could not “gut” spending but he did reduce government costs on business sufficient to ignite a 25 year boom. I don’t think the next administration/Congress can kick off a boom without sharply curtailing entitlements, not just cut the rate of increase, not just decrease payments, but eliminate them. Sharply decreasing regulatory costs o business this time around is probably sufficient to make the USA more competitive with Europe but no yet with China because the tremendous entitlement -”safety net” costs are also onerous costs on business in the USA because they remove resources from capital investment.

[Pagey]

BTTT!

[Ouderkirk]

The orders placed against my plant are for domestic china consumption as service parts for an existing installed base. It is not being resold.

They are placing orders for service parts that are for use in China and they are planning for a shortage of availability of parts. These orders are for two years of demand with the orders to be filled ASAP, leaving the US with zero balance to service the installed base here and a 12 week lead on many of these items which are US sourced.

Why would you take on two years demand for service parts if you were not expecting a shortage of supply?

[darth]

Sounds like they might be stockpiling in case of war.

Maybe they will hit Taiwan before Obama leaves office?

What would he say in his apology statement?

[wm25burke]

Why would you take on two years demand for service parts if you were not expecting a shortage of supply?

 

Maybe you already answered your question:

"leaving the US with zero balance to service the installed base here"

[hinckley buzzard]

Both Reagan and Bush 41 labored under the same handicap: neither one ever had a Republican House to originate and pass his budget. Reagan had to rely on his connection with the common man. Bush 41 didn't have a prayer.

Romney will have a republican House and probably Senate as well--he will have absolutely no excuse not to submit a responsible budget and expect it to be passed.