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You may want to consider finding someone to write about money. Just as an example, I would bet that virtually everyone of your readers cares about money and if they were asked a few questions like which stock market performed the best in the last ten years Mexico or the US, what is fiscal policy, what is monetary policy, are they at maximum stimulus level, or minimum, what happens with fiscal and monetary policies when the next recession comes, what is going to keep the US from going from recession to depression if fiscal and monetary policies are already at maximum stimulus level, is the US Treasury market in a 30 year bull market, what does that mean to investors, why is the housing market improving, could it be that the Federal Reserve is buying $40 billion in MBS each month due to its last QE program, what's QE mean, how much does the FDIC have in reserves, how much does the FDIC insure, what will happen to all the outstanding bonds when the Federal Reserve raises interest rates, the US borrows $1.3 trillion every year and who is really loaning us the money....that if you asked them about any of these issues the vast majority would be as lost as a duck in the desert. If the U-B had stories about these issues, nobody who reads the U-B could say they were not warned about the current fiscal condition of the US. However, if the U-B continues to just regurgitate what the mainstream press publishes, its readers, like I said before will be as lost as a duck in the desert with regard to a very important thing, MONEY.
When I was a kid growing up in WW, very few cars, houses, or bikes were locked up. I learned the word "gang" from watching the "Little Rascals" on TV and I never heard of a home invasion. Citizens trusted the system: law enforcement and neighbors. Personally, I think it is completely different now, I lock up everything I own, have burglar alarms protecting my home and cars, and frankly, if I do have to walk at night I watch my back, which is funny because I think to myself when I was 12, I walked all the time at night without a care in the world. If I believe the statistics it looks like I have everything backwards, which doesn't surprise me, I'm a lot older now and I'm probably just losing my mind.
Obama says $1.6 trillion in new revenue in the next ten years. That is $160 billion a year. Obama has proposed cuts of $100 billion a year at most. So he has come up with cuts and revenue increases totaling $260 billion a year. Obama borrows $1,200 billion a year (Obama's current annual deficit). Are any journalists, college professors, reporters, economists, pundits, or voters even the slightest bit interested in where he is going to get the other $940 billion? The fact is, even if Obama gets what he is proposing, he will still need to go to the bond market and borrow another $trillion dollars every single year for the next ten years, which the bond market will not be able to support.
Well stated Wally, please continue to post.
I learn more about local issues, especially issues on taxing, from your editorials than I do from any other source. Please continue to write editorials.
Unfortunately, the reason voters voted in the exact same thing is because they are worried, they are scared, even though they don't openly admit to it (and of course, those who feel their jobs or pensions are secure, most likely government in nature, may be the ones who still have some optimism left in them). Americans have given up on capitalism, free markets, and individual responsibility. They want a "safety net" if they are unemployed, and want one just incase they become unemployed, which is definitely a possibility. Obama is the "safety net" man. Time will tell, can Americans forget about hard work, good education, which means hard work when you are in school, investing, savings, entrepreneurship, and individual responsibility or can you simply vote for politicians who love borrowing and then giving away the money? I don't think the bond market will give Obama another $6-8 trillion like it did in his first 4 years. Personally, I'm saving more and spending less and preparing for a much worse economic future in America. I know that's crazy, with Obama, why should I worry, he is the man with the safety net. You can kind of see Obama in action when it comes to a crisis like hurricane Sandy. He is right there with his big talk and promises, but watch the news coverage, FEMA has signs up that say due to bad weather they are closed and people still without power. No, crazy me, I know that if a crisis occurs I'm more likely to get help from myself than the government.
Just to let readers know, recessions occur, on average, every 5 years. Depressions occur, on average every 70 years (we are due, the last one was about 70 years ago). The "business cycle," consists of expansions and contractions of the GDP. Anybody spending $millions, $billions, and $trillions of other people's money should be keenly aware of the business cycle and plan ahead. Instead, many of these people, even though they are aware of the business cycle, spend money like there is no tomorrow. And then when a recession or depression comes, get ready for the excuses. It is as old as the hills and twice as dusty. Also, the only productive way of dealing with a budget crisis after the recession is here (the sensible way is to plan ahead and be prepared, the Boy Scouts teaches 12 year olds to plan ahead, but voters don't expect politicians to), is to increase business activity and therefore jobs and tax revenues. Yes, government can tax and borrow, but the truth is you don't know if the taxing will actually raise revenue because if people are paying more in taxes they may not be spending more in the local community, and as far as borrowing, there is the interest expense and if the debt gets out of control interest rates can rise rapidly like in Greece and the situation gets much worse (meaning, borrowing is not a win, win outcome). Even spending cuts can be a negative thing if the cuts come from a productive part of government, I know that is hard to imagine. It is interesting how this editorial talks about cutting spending, which may be the way to go, and raising taxes, which most likely won't be an overall good thing for WW, yes it helps the government, but hurts the private sector. The win-win things, which are to bring in more business, stimulate local business, get more efficiency from government, meaning to get more output with less money, are not even mentioned in the editorial.
We just had a national election where citizens are told to vote so they will he heard. The voters, vote in the same President, the same Congress, and the same Senate. Why, because things are getting better. For example, consumer confidence was just reported last week to be 85, which is a 5 year high (one may ask why is consumer confidence at a 5 year high, first it does not look at debt, of course if you borrow $5.5 trillion and throw it at the economy things are bound to feel better, furthermore, three things that are very important to consumers are jobs and there is hiring, gas prices, they are falling for now, and home prices, they are rising for now). This editorial stresses the fact that the reason we have these budget problems is because of the Great Recession. According to the NBR (National Bureau of Economic Research), who determines when recessions begin and end, said that the Great Recession ended in the Summer of 2009 and the U-B supports this belief, meaning, the U-B is not stressing the fact, in general, that the economy actually, when you factor in all the excess debt and government stimulus, isn't doing very good at all. My point is that the U-B will take the position that the economy is doing better, but when it comes to local government, it only takes them a millisecond to change their position and remind us all about the Great Recession, and why, to give the perfect excuse to local government for their budget problems. We all know about the Great Recession, and we all wished we could use it as the excuse to force our bosses to raise our wages and force retailers to drop their prices, but unfortunately, we can't, we have to either, literally take on a second job or cut spending, and I'm talking about the makers not the takers.
On October 19 there were 74,000 news stories that showed up on Google when you searched "fiscal cliff" (and most likely, most of them were not from the mainstream media and may have not even been from the U.S.). Today there are 6,000,000. Yes, 6 million. The politicians and the media did an outstanding job of keeping the most important issue out of the election, and of course, American voters went along with it. Unfortunately, as this editorial points out, the takers are gaining control and the makers losing. The only problem with that is who's going to pay the bills? The President's only solution is to tax the rich. We borrow $1.2 trillion a year to pay our bills, taxing the rich according to the CBO will only raise $60-80 billion a year. Where is the other $1,100 billion going to come from, why or course, the same place it did before: The U.S. government bond market. The bond market can't handle much more of these trillion dollar loans, and when investors say no more, it is going to hurt everyone, and especially those who have no savings and depend on some kind of government check. Americans are literally at the point where they feel that they can borrow money forever, most Americans are in for a rude awakening before 2016. And I say before 2016, because most Americans feel that no matter what the National Debt is, it is no big deal, we can always vote in a new politician who will come to the rescue. But, since the debt is already so huge, there is no way the bond market can come up with another $6-8 trillion for Obama to give away. The above editorial says that our current state may go on forever, I'll bet it doesn't last another 4 years. I almost forgot, all we need to do is raise the debt ceiling again, heck, we have already raised the debt ceiling over 70 times since the Sixties, why can't it work one more time.
Well it's Obama, Americans have given him another four years, the only questions is how much longer can he continue to borrow money so he will be able to pay everyone back for their vote?
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