The cause of the slowdown in the global economy is a contraction of the money supply. To create more money, the Federal Government has to print bonds and trade them for dollars printed by the Federal Reserve. The Government has been remiss in this duty for far too long. This has allowed global monopolies to strangle the economy by reducing production and raising prices. This further reduces the amount of money in circulation, futher reducing the money supply. The government has an obligation now to hand out a whole crapload of money to the poorest people to re-ignite economic activity. But those who are sitting on a big pile of cash, they don't want that to happen. They like the idea of cash as an appreciating asset, something that becomes more valuable over time. Sure, most people won't understand it until they are mowing Mr. Bigg's grass while their wife is up in Mr. Bigg's mansion scrubbing the bathroom, and their son is waxing Mr. Bigg's limo, and their daughter is giving Mr. Bigg a "sensual" massage. Then it will all make sense...
Very true. The debt ceiling will be raised. The GOP hypocrites who are threatening not to vote to increase the debt ceiling now nearly all voted multiple times to increase it during the Bush administration (which is responsible for our current situation).
"It is important to emphasize that changing the debt limit does not alter or increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations Congress has already established.
In fact, even if Congress were immediately to adopt the deep cuts in discretionary spending of the magnitude suggested by some Members of Congress, such as reverting to Fiscal Year 2008 spending levels, the need to increase the debt limit would be delayed by no more than two weeks. The limit would still need to be raised to make it possible for the government to avoid default and to meet the other obligations established by Congress."
Thanks, Doug. We're on the same wave length.
Geithner comment is completely irrelevant to the issue.
Everyone - of common sense - knows the objective of republicans is to use the debt ceiling as leverage to cut FUTURE outlays -i.e. cut the unsustainable spending of the DEMS cradle to grave socialist nonsense
"To create more money, the Federal Government has to print bonds and trade them for dollars printed by the Federal Reserve. "
Demonstrates a lack a fundamental understanding of macro economics.
Where do you get your facts? Does this look like a shrinking money supply to you?
So, if we have so much money, why the need to cut medicare, planned parenthood, raise taxes on women seeking abortions, cut headstart, cut LIHEAP...why the need to cut if we're swimming in dough?
What recession then?
The problem is, the money is HOARDED at the top.
That graph could apply to the incomes of the top 2% of Americans too....
While a graph of the middle and lower classes would show the income going down!
Gvt policies did it.
Gvt policies can reverse it.
The Federal Reserve has been increasing the money supply and keeping interest rates low in an effort to pull the country out of the deepest recession since the 1930s. Thanks to the Republicans the stimulus package was too small to do the job.
Now I heard it all! the stimulus was too small????? You are kidding...right? If you truly believe this I want to sell you some Air! That is the stupidest thing I have ever heard anyone ever say! you have got to be joking! Give some facts for once in your life Ralph! real facts not BS talking points or scaring people with LIES! I seen on another thread someone posted facts to you and you clammed up like a little girl! They asked you for facts and you gave more nonsense talking points. Your messiah said in 2006 that if the debt ceiling has to be raised it means the administration is a failure! So does that mean he is a failure? You guys are screaming the repubs are trying to take away SS for the elderly and you know it isn't true! anyone 55 or older will not lose a thing! stop the lies! read factual data not NPR or huffington post nonsense!
"55 or older will not lose a thing! stop the lies! read factual data not NPR or huffington post nonsense!"
And what about those under 55?
Privitized--where the bank gets a cut of everything. Same old same old. If you have money--you're ok. If not---eh, just suffer.
You people are wanting to go backwards in time.
The Gilded Age was Tungsten covered bars pretending to be Gold....
And it's coming undone.
There's no "There" There. The whole thing is a Ponzi scheme designed to enrich the very few.
Guess what? Top-heavy things fall over eventually. We have hit the breaking point.
Fall it must.
On that money supply graph, that M1 all the way at the bottom is the money supply for all us little peasants. Notice it has gone down a bit. The rest is imaginary, magical money created when banksters make handshake deals written on paper napkins. Derivatives and Swaps, technically. e.g. Jamie Diamon says to Lloyd Blankfine, he says, "I bet you a zillion dollars Brazil wins the World Cup in 2040." They just created an economic instrument worth a zillion dollars, and can trade it on the international derivatives markets, thereby increasing their money supply. But not yours...
As for that stimulus, it came after the TARP. TARP, that is where congress borrowed 750 billion and handed it to the banksters. The banksters stuck it in thier pockets; In 2008, the Banksters collected 108 billion in executive bonuses, and regular compensation for all the banksters and thier bank employess ate up the rest. TARP saved banks that were insolvent and sould have been taken over by the FDIC and liqudated. That would have been a lot cheaper, and better for 98% of Americans. And gas would be a buck, without those A-holes bidding up oil prices.
by lady_love1585 years ago
http://www.speaker.gov/blog/?postid=240654We need to cut trillions not billions and unless we do we should not raise the debt ceiling! Obama is spending 4 trillion dollars a year even though historically revenues don't...
by Susan Reid5 years ago
From that bastion of lamestream liberalism, TIME. Mr. Klein puts it so darned well I couldn't resist posting the whole article. It's not very long. Enjoy!Oh, and as we all know, there WAS no vote today (Thursday). ...
by Susan Reid5 years ago
Best comment I've seen to date says (paraphrased):"I think the Congress should do this every day. They've got nothing better to do. And the economy's humming along and everything's swell here on the shining city on...
by zzron4 years ago
Maybe the word hate is a little strong. So why do people dislike President Obama and the way he is running the country? Are you an Obama fan? Yes, no, what is your opinion of Obama and his policies?
by jerryl7 years ago
Millions of people do not understand that we have a debt monetary system.The actual creation of money (always) involves the extension of credit by private commercial banks.This means interest bearing loans, so all M1...
by James Smith3 years ago
http://online.wsj.com/article/SB1000142 … 63786.htmlI heard a good argument against the raising the debt ceiling a few years back. This senator argued leadership means that ''the buck stops here. Instead,...
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