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 4rumninja
Joined: 11/30/2009
Msg: 148
US Debt CrisisPage 7 of 8    (1, 2, 3, 4, 5, 6, 7, 8)

The rating came as a result of obvious signs that all Congress seems to be doing is bickering solely in the interest of political party futures, not solving the debt problem. Political posturing won't solve anything.
I agree nothing was solved..my point is Obama and his crew assured everyone that if a debt deal and debt limit increase were passed our credit rating wouldn't go down..they did a deal even though it wasn't in the best interest of the Republicans , our credit rating was down graded anyways..

Remember Obama saying that we had to raise the limit to avoid a downgrading of our credit rating? Remember,we have to pass something or else? Well... He got what he wanted and guess what he was Wrong as Usual...


Markets respond to sound decision-making
Exactly, Obamas decision making in regards to the Economy isn't sound, the Market responds...
 grizzelda
Joined: 6/25/2006
Msg: 149
view profile
History
US Debt Crisis
Posted: 8/8/2011 11:27:13 AM
I agree nothing was solved..my point is Obama and his crew assured everyone that if a debt deal and debt limit increase were passed our credit rating wouldn't go down..they did a deal even though it wasn't in the best interest of the Republicans , our credit rating was down graded anyways..


Gee, you dont think it had anything to do with the incredible instability that was shown by American politicians that had anything to do with the downgrading??? Essentially the GOP led a 3 ring circus that only solidified in many people's mind exactly how ridiculous the American political situation has become. If you want to act like a clown, sound like a clown, do all the things a clown will do, dont get upset when you get treated like a clown.

What the GOP managed to do was reinforce the idea that the US is incredibly far away from being governed properly for the good of the country, and showed that its leaders seem incapable of making the right decisions regardless of party lines and ideology. They did however manage to confirm the perception that the US is being governed for the good of the politicians involved and the 2% of the very wealthy. The rest of you can go fuck yourselves, thats pretty much what these people were saying to you. I guess its hard to let go and realize that the odds of you being one of the 2% are really not in your favor, and that fighting for the rich to keep their money just in case you become one of them no longer is within your best interest. YOU WILL NOT BECOME ONE OF THE 2%, SO WHY ARE YOU TAKING THE HIT FOR THEM??????

The sad thing is that people like you cant really see that because you are so blinded by your "party lines" and would rather blame that accept the reality of your county's situation. The US is a credit risk, it has been for a while, it was however "too big to fail" but I guess someone got tired of pretending there wasnt an elephant in the room and actually pointed it out.
 itechman63
Joined: 7/7/2005
Msg: 150
view profile
History
US Debt Crisis
Posted: 8/8/2011 12:09:24 PM
More of the my team is better than your team stuff going on here.


Remember,we have to pass something or else?


When haven't we heard that in the past 40 years and particularly from the previous administration? We have to invade Iraq or else the WMDs will kill us all! We have to bailout Goldmann Sachs now or else we'll all die!

Yes... definitely hold Obama for failing to deliver on "change we can believe in" but by the same token you'd think that those of us on the right would feel some sort of comfort in the fact that he's maintained the status quo in Washington that we seem to love so much.
 HalftimeDad
Joined: 5/29/2005
Msg: 152
US Debt Crisis
Posted: 8/8/2011 9:08:44 PM

Exactly, Obamas decision making in regards to the Economy isn't sound, the Market responds...

The Standard and Poor report specifically named the Tea Party Republicans as the primary reason for the fiscal irresponsibility. It isn't Obama's decision making that is the problem.
 4rumninja
Joined: 11/30/2009
Msg: 153
US Debt Crisis
Posted: 8/9/2011 6:50:39 AM
"We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, Especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. "

"Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on
more comprehensive measures. It appears that for now, new revenues have
dropped down on the menu of policy options. In addition, the plan envisions
only minor policy changes on Medicare and little change in other entitlements,
the containment of which we and most other independent observers regard as key
to long-term fiscal sustainability.

In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

"We have changed our assumption on this because the majority
of Republicans in Congress continue to resist any measure that would raise
revenues, a position we believe Congress reinforced by passing the act. Key
macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade."

That's the reference to Republicans..nothing about the Tea Party specifically...I like how all the Obama zombies totally overlooked the part the Democrats played in this outcome....

Other factors that were considered in the S & P rating that are purposefully overlooked by the Obama sycophants that populate these forums..

The GDP lower both in nominal and Real terms..
Sub par rebound relative to previous post war recessions..
Government debt to GDP ratio not predicted to go down in the near future
As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward

Do you liberals ever actually read from the source or do you rely solely on Rachel Maddow and the Huffington post?
 FrankNStein902
Joined: 12/26/2009
Msg: 154
US Debt Crisis
Posted: 8/9/2011 7:09:44 AM

Do you liberals ever actually read from the source or do you rely solely on Rachel Maddow and the Huffington post?

Do you give credit to your sources, or do yours just prefer to plagiarize others?




Other factors that were considered in the S & P rating that are purposefully overlooked by the Obama sycophants that populate these forums..

Pot Meet Kettle.

Cantor To House GOP: Resist ‘Pressure To Compromise On Tax Increases’ In Wake Of Downgrade
Brian Beutler | August 8, 2011, 4:42PM

Will S&P's controversial decision to downgrade the country's bond rating -- and its explicit citation of GOP intransigence on tax revenue -- be enough to break the Republicans' broad opposition to tax increases in future deficit reduction legislation?

Not if House Majority Leader Eric Cantor (R-VA) can help it.

In a Monday memo to the House GOP caucus, he candidly acknowledged that S&P faulted the party's unyielding stance on tax revenues for the downgrade. But he encourages members not to erase this bright line.

"Over the next several months, there will be tremendous pressure on Congress to prove that S&P's analysis of the inability of the political parties to bridge our differences is wrong," Cantor wrote. " In short, there will be pressure to compromise on tax increases. We will be told that there is no other way forward. I respectfully disagree.... I firmly believe we can find bipartisan agreement on savings from mandatory programs that can be agreed to without tax increases. I believe this is what we must demand from the Joint Committee as it begins its work."

In other words, House Republicans should unite against a plan that isn't dominated by Medicare cuts and contains no tax increases. There are 240 House Republicans, and during the debt limit fight, they followed Cantor's lead on this score.


http://tpmdc.talkingpointsmemo.com/2011/08/cantor-to-house-gop-resist-pressure-to-compromise-on-tax-increases-in-wake-of-downgrade.php?ref=fpa
 4rumninja
Joined: 11/30/2009
Msg: 156
US Debt Crisis
Posted: 8/9/2011 8:27:25 AM
Actually I got those directly from the S & P website...you should go there and read their report in it's entirety....

Interesting to see how you all disregarded the part the Dems played by refusing to reform entitlements, or the weight that S& P put on the overall state of the Economy...probably because Obama is in charge so it's easier for you to employ the typical Liberal tactic of blaming everyone else for his lack of effectiveness...


Pot Meet Kettle.

Really, you are going to quote a Liberal Blog? ..then blast me for going directly to the Source....


you may not see .... but the world did
I guess I am not the only one who didn't see that as S&P cited numerous reasons for the downgrade.
 Earthpuppy
Joined: 2/9/2008
Msg: 157
view profile
History
US Debt Crisis
Posted: 8/9/2011 10:29:45 AM
S&P hold TP responsible:


"[T]he downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges [...] The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy."

Mitch McConnell "“I think some of our members may have thought the default issue was a hostage you might take a chance at shooting. Most of us didn’t think that. What we did learn is this — it’s a hostage that’s worth ransoming. And it focuses the Congress on something that must be done.”
 4rumninja
Joined: 11/30/2009
Msg: 158
US Debt Crisis
Posted: 8/9/2011 10:35:50 AM
Read the report on the S & P website...you will see all of the reasons they listed for downgrading our credit rating..I can cherry pick too...but it does none of us any good...

Do you guys purposefully ignore the parts that don't suit your agenda? are you even aware that you do it? I really didn't know why they made their decision so I went to their website to see what they had to say...there was the part that you posted mentioned but there was much more and many more variables that they considered in their decision making...

Does anything ever happen that you don't blame someone else? Obama has been in charge for over 2 and 1/2 years..he has tried a stimulus plan, he appointed so called experts to make policy....the state of the Economy and the lack of potential for a rebound were two of the major factors considered by S&P...the politics was only part of their reasoning...
 CountIbli
Joined: 6/1/2005
Msg: 160
US Debt Crisis
Posted: 8/9/2011 1:33:06 PM
"Let's hope that the other two rating agencies do not follow suit. This all depeands on what Congress does next. "

I'll tell you exactly what Congress will do. Not cut spending by as much as a penny. I'm talking real cuts here, not just slowing the growth of the spending. We're set to add $7 trillion to our debt in the next 10 years. Of course the other two agencies will downgrade us. They need to if they want to keep what little credibility they still have. Democrats are unwilling to cut social programs and Republicans are unwilling to cut military budgets. Neither party is willing to cut business subsidies and I smell another bailout coming over the horizon. So have fun trying to figure out a way out of this debt crisis when only 10% of the budget is on the table and the economy shows no signs of recovery.
 itechman63
Joined: 7/7/2005
Msg: 161
view profile
History
US Debt Crisis
Posted: 8/9/2011 2:04:45 PM
If ineptitude of Congress is their reasoning, why then didn't they downgrade the credit rating decades ago?

While I understand this is tin foil hat territory, something feels like a political agenda in play or that S&P is stepping into influencing policy in some way for some reason.
 CountIbli
Joined: 6/1/2005
Msg: 162
US Debt Crisis
Posted: 8/9/2011 2:41:14 PM
"If ineptitude of Congress is their reasoning, why then didn't they downgrade the credit rating decades ago?"

That's a good question. It's something they should have done a long time ago.
 CountIbli
Joined: 6/1/2005
Msg: 164
US Debt Crisis
Posted: 8/9/2011 11:02:07 PM
Let's face it anyone who isn't same-old same-old is either ignored (Gary Johnson) or labelled insane (Ron Paul) or called a radical (Dennis Kucinich). Anyone who runs on a Third Party ticket is unelectable; Americans would rather vote for the winner than someone who's good, after all. So we end up with incompetent boobs like Obama and Bush, and that isn't going to change.
 Stray__Cat
Joined: 7/12/2006
Msg: 166
US Debt Crisis
Posted: 2/28/2013 5:30:49 PM
How do you pay your mortgage?
(if you have one.)
with one big check?
Or several small checks over time?

The so-called debt crisis is a political crisis...
for the Republicans.
As it is the ONLY issue they have.
And it is a non-issue at that.
(According to Cheney"Deficits don't matter.")

If Romney HAD won the election...
the GOP would be spending like crazy
and the Demos would be whining about it.

Whoever is in power is tagged as reckless spenders
by those out of power.

Demos complained about Reagan deficits.
GOP complained about Clinton deficits.
(until he got a surplus and silenced em.
Boy were they CHEESED about that!)

Then Bu$h got in and the Demos got onto him
about blowing the Clinton surplus.
(which he did)

Now it's Obama's turn for deficit poseurs
to endlessly complain and carp about his spending.

OK, two facts:

One, Obama has brought down govt spending on his watch.

and two, that is a bad thing.

In a depression..... and this IS a depression...private sector sector spending collapses
and the govt spends more to make up the difference.
Or rather should spend more to do so.
It's called Monetary Theory and is pretty well known and irrefutable.

If a govt doesn't...private sector spending collapses more...
tax receipts drop more...
and the deficits increase.
Cutting govt spending in a depression ALWAYS increases the debt.
Not decreases it.

I know that sounds odd, but you can see it with your own eyes in Europe.
Because of the one size fits all Euro-straightjacket....
southern Europe cannot compete with northern Europe.

So it is a one way exchange where all southern European wealth flows north.
If southern Europe had their own currency they could inflate it
and pay their debts with inflated coin. and export more due
to having a cheaper currency.

Instead...German Bankers want their money....
so imposed Austerity on southern Europe.
Southern Europe cut govt spending drastically.
laid off teachers, govt workers, stopped public works...
and cut their budgets beyond the bone.

What happened?
things got worse.
A LOT worse.

Tax receipts plummeted as now even more
folks are out of work and NOT paying taxes.
Even more businesses closed and are NOT paying taxes.
and govt debt rose higher.

The more they cut...
the higher their deficits became.
Even worse, they voluntarily added even more
unemployed on top of the other unemployed.

In America we had QE and TARP(both were flawed programs but better than nothing.)
Obama spent where he could.
Our economy is barely inching along...but is holding it's own.
Until the sequestration hits tomorrow.
Then we will cut back.
Our deficits will get higher.(not lower)
Our economy will slow.
Tax receipts will drop further
Unemployment will increase.
So will foodstamps and other govt aid programs.

Republicans know this and are hoping for that result.
It is the only chance the billionaire party has to get back in power.

so I am on record and telling you exactly how this will pan out.
I will go even further.
If a Republican does get elected in 2016 he will spend like
crazy to end this madness.
It is the only way to do so.

We are not Greece.
We print our own currency so it is IMPOSSIBLE
for us to default unless congress wills us to.

And it is odd that as much as we are supposed to be in the hole...
our currency is stronger than every other country.
Any country that does have a stronger currency(like maybe Switzerland)
is in the process of weakening theirs compared to ours.

Our debt is manageable.
As are our entitlements.
Over time...a growing economy will reduce the burden of both.
A shrinking economy caused by austerity will increase both.
Take your pick.

Sorry for long post.
But this is a complicated issue.

This is gonna be one long brutal economic lesson we will live thru.
Welcome to the austerity petri dish.
population...you.
 GreenThumbz18
Joined: 4/25/2012
Msg: 167
US Debt Crisis
Posted: 11/19/2013 6:33:27 PM
"In a depression..... and this IS a depression...private sector sector spending collapses
and the govt spends more to make up the difference.
Or rather should spend more to do so.
It's called Monetary Theory and is pretty well known and irrefutable."

Correction - Monetary Theory- (Keynesian) states that in good times you save up for a rainy day, so that when a recession occurs you will have the funds to re-stimulate your economy.

"If southern Europe had their own currency they could inflate it
and pay their debts with inflated coin. and export more due
to having a cheaper currency."

Is that the solution to debt, inflated currency?

"We are not Greece.
We print our own currency so it is IMPOSSIBLE
for us to default unless congress wills us to."

Too bad for Greece, eh?
They could just pay their debts with fresh money, they way we do it in America. Your creditors do get paid, but what is it worth? A thousand dollars for a loaf of bread?
 flyguy51
Joined: 8/11/2005
Msg: 168
US Debt Crisis
Posted: 11/19/2013 9:03:01 PM
Because I have been reading such conflicting reports about the Fed "printing money" or not, I set about to solve the contradiction. The Fed does create money, but it does not "print money" or, even more precisely, "print currency" in times like this. It just creates the money electronically in what is called a reserve balance. So, that is why some are saying that the Fed is not, and never has printed money. It seems to be a matter of semantics.

That said, all those who predict hyperinflation as a result are off-base. Interest rates are about as low as possible, and demand is woefully low. Both these factors work against inflation. In fact, "The Economist" is currently warning that inflation is actually too low in its opinion. Monetary policy is a very delicate balancing act.

Here's an excerpt from a good article:

Are reserves the same thing as money? An individual bank is entitled to convert those accounts into currency whenever it likes. Reserves are also used to effect transfers between banks. For example, if a check written by a customer of Bank A is deposited in the account of a customer in Bank B, the check is often cleared by debiting Bank A's account with the Fed and crediting Bank B's account. During the day, ownership of the reserves is passing back and forth between banks as a result of a number of different kinds of interbank transactions.

To understand how the receipt of new reserves influences a bank's behavior, the place to start is to ask whether the bank is willing to hold the reserves overnight. Prior to 2008, a bank could earn no interest on reserves, and could get some extra revenue by investing any excess reserves, for example, by lending the reserves overnight to another bank on the federal funds market. In that system, most banks would be actively monitoring reserve inflows and outflows in order to maximize profits. The overall level of excess reserves at the end of each day was pretty small (a tiny sliver in the above diagram), since nobody wanted to be stuck with idle reserves at the end of the day. When the Fed created new reserves in that system, the result was a series of new interbank transactions that eventually ended in the reserves being withdrawn as currency.

All that changed dramatically in the fall of 2008, because (1) the Fed started paying interest on excess reserves, and (2) banks earned practically no interest on safe overnight loans. In the current system, new reserves that the Fed creates just sit there on banks' accounts with the Fed. None of these banks have the slightest desire to make cash withdrawals from these accounts, and the Fed has no intention whatever of trying to print the dollar bills associated with these huge balances in deposits with the Fed.
Of course, the situation is not going to stay this way indefinitely. As business conditions pick up, the Fed is going to have to do two things. First, the Fed will have to sell off some of the assets it has acquired with those reserves. The purchaser of the asset will pay the Fed by sending instructions to debit its account with the Fed, causing the reserves to disappear with the same kind of keystroke that brought them into existence in the first place. Second, the Fed will have to raise the interest rate it pays on reserves to give banks an incentive to hold funds on account with the Fed overnight.

Doing this obviously involves some potentially tricky details. The Fed will have to begin this contraction at a time when the unemployment rate is still very high. And the volumes involved and lack of experience with this situation suggest great caution is called for in timing and operational details. Sober observers can and do worry about how well the Fed will be able to pull this off.

But that worry is very different from the popular impression by some that hyperinflation is just around the corner as a necessary consequence of all the money that the Fed has supposedly printed.

http://finance.fortune.cnn.com/2011/02/18/how-the-fed-prints-money-without-any-ink/
 GreenThumbz18
Joined: 4/25/2012
Msg: 169
US Debt Crisis
Posted: 11/20/2013 7:44:33 AM
"Sober observers can and do worry about how well the Fed will be able to pull this off."
My point exactly. Every time, and there have been many times, that the Fed even "hints" at stopping or even slowing down this phoney-baloney debt scheme, the financial markets go ballistic. Can you please explain this phenomenon?
"
November 20, 2013, 9:14 a.m. ET http://online.wsj.com/article/BT-CO-20131120-705979.html

Treasury Bonds Stung by Retail Sales Report
By Min Zeng

Prices of U.S. Treasury bonds got hit Wednesday as an upbeat consumer spending report raised anxiety that the Federal Reserve could dial back bond buying as soon as next month.

U.S. retail sales grew by 0.4% in October, four times the forecast by economists. The Fed has said that the timing for it to reduce its $85 billion monthly bond-buying program depends on the health of the U.S. economy.

The benchmark 10-year note was 5/32 lower, yielding 2.73% in recent trade, according to Tradeweb. Bond prices move inversely with their yields.

The selling was kept in check as a separate release showed no inflation risk in the U.S. The consumer prices index fell by 0.1% last month. Economists have expected the CPI to be unchanged. Excluding food and energy, the reading rose by 0.1%, matching economists forecasts.

Tame inflation has offered breathing room for the Fed to stimulate the economic recovery via unconventional quantitative easing tools. The central bank's latest bond-buying program that started at the start of this year has been a main factor holding Treasury yields near historic lows.

Fed Chairman Ben Bernanke suggested in a speech late Tuesday that the central bank could cut bond buying in coming months if the economy continues to strengthen. But Mr. Bernanke added that the central bank wouldn't be in a rush to raise its short-term policy rate from near zero any time soon even if it moves to taper bond buying.

Janet Yellen, the nominee to replace Mr. Bernanke when his term as the Fed chief expires in early 2014, also signaled last week that the Fed would likely keep the policy rate for years as the pace of the economic recovery hasn't been strong enough for a shift into tightening monetary policy.

Traders said the Fed's policy outlook could push up longer-dated bond yields, but yields on shorter-dated bonds would continue to be anchored by the near zero policy rate.

The Fed has held its policy rate between zero and 0.25% since December 2008.

The 10-year yield has climbed from 1.78% at the end of last year.

Treasury bonds have handed investors a loss of 1.9% in total return this year through Tuesday, according to Barclays.

Write to Min Zeng at min.zeng@wsj.com "


Interesting, the last sentence " Treasury bonds have handed investors a loss of 1.9% in total return this year through Tuesday, according to Barclays."
The U.S. economy is on life-support, and every time the doctor even thinks about unplugging the machines, everybody starts screaming "NO, NO, DON'T DO IT !!" So, we are stuck in a financial quicksand. If our economy grows, they try stop the Fed's involvement, but as soon as that happens, the markets take a dump and the Fed cranks up their cyber-money machine again.
BTW Fly, is that like Paypal ?
 flyguy51
Joined: 8/11/2005
Msg: 170
US Debt Crisis
Posted: 11/20/2013 10:14:29 AM
You are overstating the case when you say, "the markets take a dump," because that is not what is happening. What is happening is that those who invest in Treasury bonds are basically betting (hedging, really) on the economy going poorly. When the economy shows signs for the better, bond yields go up, but the price goes down, causing a net loss for the investor. It is because the market is picking up that bond prices go down. It is not at all indicative of the stock market "taking a dump."

As was said in the article, the Fed has to be delicate in when and how it bows out of the QE process as the global economy slowly and unevenly recovers.

And here's another informative article on how Treasury bonds respond to economic improvement:

NEW YORK (MarketWatch) — Treasury yields jumped Tuesday, sending prices lower on the back of positive data from the U.S. and Europe that underscored a narrative of improving global economic growth.

http://www.marketwatch.com/story/treasurys-slide-as-data-spur-improving-outlook-2013-08-13
 GreenThumbz18
Joined: 4/25/2012
Msg: 171
US Debt Crisis
Posted: 11/20/2013 12:59:15 PM
"You are overstating the case when you say, "the markets take a dump," because that is not what is happening"
I know, the official term is "correction", and "take a dump" is a non-specific term .
But, I just Googled "markets drop on Fed news" and got 318 million hits.

Here's just one : Dose of reality from Fed jolts markets after long upward run

By Tim Devaney

The Washington Times

Thursday, June 20, 2013


Wall Street suffered through its worst day of the year Thursday, bringing investors down from the “sugar high” they have enjoyed this year as the markets topped milestone after milestone.

The Dow Jones industrial average plummeted for the second consecutive day Thursday, at one point tumbling by more than 360 points, or nearly 2.4 percent, to close at 14,758.32, one day after the Federal Reserve hinted that it may soon tighten the monetary spigot. Disappointing news on China’s latest manufacturing statistics contributed to trader pessimism, as well.

A day earlier, the Dow dropped more than 200 points, or 1.3 percent — making the total from Wednesday and Thursday about 560 points, or just shy of 4 percent.

The broader S&P 500 index, meanwhile, tumbled below the 1,600 mark, closing at 1,588.19, down more than 40 points, or 2.5 percent on the day, while the tech-heavy Nasdaq fell more than 78 points, or 2 percent, to 3,364.64.

Federal Reserve Chairman Ben S. Bernanke on Wednesday suggested that the Fed may start winding down its stimulus program because the markets are strong enough that they no longer need the government’s help.

 flyguy51
Joined: 8/11/2005
Msg: 172
US Debt Crisis
Posted: 11/20/2013 4:24:21 PM
I just realized that I made the mistake of conflating the economy with the stock market earlier. To restate, when the economy shows signs of improvement, Treasury bond prices fall-- that is not bad news; that is simply how they function.

So, I think we can agree that it is a good thing overall for the economy to improve to the point where the Fed is comfortable enough to start bowing out of the QE program. Yes, the stock market will panic and react poorly at first, but that is to be expected, and, again, the stock market is not the economy.
 BigBadNIrish
Joined: 1/31/2011
Msg: 173
US Debt Crisis
Posted: 11/24/2013 5:46:54 AM

Here's just one : Dose of reality from Fed jolts markets after long upward run


Ahahahahaha....ya notice that the gloom and doom post about the fed and the stock market decline was made just a couple of days ago...right as the market was hitting an all time high...talk about an alternate reality!
 vlad dracul
Joined: 4/30/2009
Msg: 174
view profile
History
US Debt Crisis
Posted: 11/24/2013 7:07:17 AM
Right now being a thicko has its disadvantages. And being clueless on finance and financial things is not unknown to many.
But i have banged on for as long as ive been posting on how the so called 'far right' in europe is completely different to what is known as
the 'far right' over the pond.

Now i was reading this article about the front national in france and how they hope to regenerate the french economy.

What’s more surprising is that FN has a plan to fix the economy that in many ways resembles a leftist manifesto.
Nationalizing banks, raising protectionist trade barriers, handing out cash to low-paid workers—
they’re all part of the platform developed by Le Pen, 45, who took over leadership of the party two years ago from her father,
FN founder Jean-Marie Le Pen.
“The FN used to hobble along on one leg,” talking only about immigration and crime, which were its signature issues,
Marine Le Pen says in an interview at the party headquarters in suburban Paris. “When you go from 10 percent to 25
percent in the polls, you are a real party, and you need to behave that way.
I’ve immersed myself to give visibility to the economic and social program, to build a real platform on these issues.”
Le Pen says France has been “left alone, naked” to face unchecked globalization. She wants France to leave the European Union
and pull out of the euro currency so it can keep tight controls on imports while devaluing its currency “to relaunch exports and employment"
” The FN platform calls for a 3 percent tax on all imports that would be used to give a €200 ($270) monthly bonus to the country’s lowest-paid workers.
She also wants the government to play a stronger role in managing the economy—for example, by temporarily nationalizing banks and
forcing them to “clean up” their practices. “We still believe in free markets,” she says.
“The danger is ultra-liberalism, where financial markets impose all the rules.”
Le Pen isn’t the only French politician who has blasted financiers. Socialist President François Hollande proclaimed them his “enemy” during his 2012 campaign.
But he has never suggested nationalizing banks
http://mobile.businessweek.com/articles/2013-11-20/the-far-left-economics-of-frances-far-right

Now my question to those ITK about financial things is this. Would what marine le pen is saying that the front national will do
work for france or the uk, canada or the states?
Personally i would go down that route but do the ITK mob think it would work because europe is on the cusp of something huge
politically and it will of course affect over the pond.

And this just in the news.
http://abcnews.go.com/International/t/story/neo-nazi-wins-regional-election-slovakia-20994215?ref=http%3A%2F%2Fnews.google.co.uk%2F

And it is on topic as US debt will be affected by what goes on here. So if an ITK er could try and give a simple 'idiots guide to economics' one would be most
grateful.

Vlad the financial non wizard Dracul
 GreenThumbz18
Joined: 4/25/2012
Msg: 175
US Debt Crisis
Posted: 11/26/2013 11:40:56 AM
^^^^^^ always nice to hear from across the pond.

"Why does Wall Street fear Fed's taper plan? - from USA Today

NEW YORK — Wall Street, with its dependence on cheap money, is worried the stock market will suffer withdrawal when the Federal Reserve starts dialing back its stimulus.

For years, the Federal Reserve has been Wall Street's best friend as it injected tens of billions of dollars each month into the arteries of the stock market and economy — the financial world equivalent of a performance-enhancing drug.

But the Fed keeps hinting that it's getting ever closer to dialing back on its $85 billion monthly bond-purchase program, known as quantitative easing, or QE. Wall Street, despite first hearing about the Fed's plan to trim its asset purchases in May, still can't seem to get comfortable with the idea of less Fed support."

read more: http://www.usatoday.com/story/money/markets/2013/11/24/why-wall-street-fears-fed-taper/3664723/









http://www.usatoday.com/story/money/markets/2013/11/24/why-wall-street-fears-fed-taper/3664723/
 BigBadNIrish
Joined: 1/31/2011
Msg: 176
US Debt Crisis
Posted: 11/26/2013 11:52:48 AM
Ahahahahahaha....gloom and doom from the teapart poster:


always nice to hear from across the pond.

"Why does Wall Street fear Fed's taper plan? - from USA Today

NEW YORK — Wall Street, with its dependence on cheap money, is worried the stock market will suffer withdrawal when the Federal Reserve starts dialing back its stimulus.

For years, the Federal Reserve has been Wall Street's best friend as it injected tens of billions of dollars each month into the arteries of the stock market and economy — the financial world equivalent of a performance-enhancing drug.

But the Fed keeps hinting that it's getting ever closer to dialing back on its $85 billion monthly bond-purchase program, known as quantitative easing, or QE. Wall Street, despite first hearing about the Fed's plan to trim its asset purchases in May, still can't seem to get comfortable with the idea of less Fed support."


Of course then there's reality:


All three main indexes have hit fresh session highs in the last few minutes.

http://blogs.marketwatch.com/thetell/2013/11/26/stock-market-live-blog-bubble-watching-housing-tiffany/
 IgorFrankensteen
Joined: 6/29/2009
Msg: 178
view profile
History
US Debt Crisis
Posted: 12/21/2013 7:34:01 AM
The health of the stock market was detached from the health of the general economy back during the 80's. While it still bodes ill for us when it falls dramatically, when it rises, it only means that the top money people are playing games again.

Notice how when the market has fallen since 1980, the middle and working classes suffer; but when it rises, we see no change in our own outlook at all.

As for the "debt crisis," it seems to have been pushed off the top focus list again. I even heard a report a couple of days back on the radio, where an economist as explaining, albeit obliquely, that how much the government is in debt, does NOT relate directly to whether businesses expand or not, and hence has little to do with employment figures or with pay scales.
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