Dan Kone
Well-Known Member
yes it is.
And perhaps it'll trigger a great depression and turn America into a third world country.
Presidential Warning on Debt Ceiling Increase
- Thread starter BendBrewer
- Start date
beardo
Well-Known Member
Your off because their is no need to raise the debt ceiling to prevent our credit rating from being down graded.
mame
Well-Known Member
He's trying to argue for short term stimulus and long term fiscal restraint (including spending cuts, reforms and additional revenues) but he doesn't want to use the word "stimulus"; Seemed pretty clear to me... He says almost the same thing every speech, "investments in education, infrastructre, etc".... "Even as we continue to cut back and tighten our belt." blah blah blah
Shutting down the government kind of games were played in the 90's but the economy was strong at the time. This time the economy is down big time, and financial markets are far more nervous. This time there will be very different results if they continue to play games.
Bill Gross's right hand man Mohamed El-Erian, co-chief investment officer at Pacific Investment Management Co., which oversees $1.2 trillion in assets, told Reuters: “If not reversed within the next few days through crisis negotiations, this breakdown will be highly detrimental to the already-fragile health of both the US and global economies.”
With further spending cuts, sales go down more, more jobs are lost, and tax revenues fall more. When the $150 billion/month in govt spending stops in 2 weeks, sales fall, jobs are lost, and tax revenues fall, so spending is further cut, sales go down more, more jobs are lost, and tax revenues fall more, etc. etc. etc. until we reach a third world employment level.
If the US debt ceiling is not extended the drop in aggregate demand (spending) will take down most of the world economy.
Welcome to the real Great Depression II.
Bill Gross's right hand man Mohamed El-Erian, co-chief investment officer at Pacific Investment Management Co., which oversees $1.2 trillion in assets, told Reuters: “If not reversed within the next few days through crisis negotiations, this breakdown will be highly detrimental to the already-fragile health of both the US and global economies.”
With further spending cuts, sales go down more, more jobs are lost, and tax revenues fall more. When the $150 billion/month in govt spending stops in 2 weeks, sales fall, jobs are lost, and tax revenues fall, so spending is further cut, sales go down more, more jobs are lost, and tax revenues fall more, etc. etc. etc. until we reach a third world employment level.
If the US debt ceiling is not extended the drop in aggregate demand (spending) will take down most of the world economy.
Welcome to the real Great Depression II.
golddog
Well-Known Member
That may be the only way to stop out of control spending
America will NEVER be a third world country, If it happened the rest of the world would be a 4th world country.