[Buckshee Rounds]

Tax raises are never talked about, but should happen. The US need some revenue, but it seems they forgot that the states' main source of income is taxes, and that said income has been cut rather severely.

Problem is Americans hate taxes, possibly more so than many other countries in the world. Hell the USA wouldn't even exist if Americans didn't mind paying lofty taxes (or being taxed without representation, or being drafted into ze royal navy, but I jest...)

You can't compare the situation with American debt to any other country reliably for two good reasons: firstly because the US deals with far more money than any other country in the world and secondly because US debt affects the entire world. There's a proverb which origins escape me: when the US sneezes the world catches a cold.

It don't matter though. When China and America duke it out in the Great Resource Wars us Scots will sit comfortably in our hills with our renewable wind and wave power, laughing as England and Holland are flooded by the polar ice caps.

[Nuclear1]

Cos I'm a socialist. Wealth redistribution FTW.

HA I FOUND YOU OUT

you european elitist scum. UNGREATFOL JERK we saved your whole continent

you probably like the terrorists too

[peterv]

http://hubpages.com/hub/How-To-Enslave-A-Nation


"That’s right America – your whole economy is not based off of much of anything being of real value, but rather a number in a database that can go away at any time. That car or house that you worry so much about making payments on is nothing more than a few digits inserted the balance sheet of non-existent funds that your bank made. Feels good huh? Oh, and don’t let anyone tell you that the GDP is the measurement by how much the dollar is worth. While that certainly is the explanation we are often given, remember that the GDP is nothing more than a measure of goods and services produced. That means that the Federal Reserve is basing the value of a dollar on a measurement of high dynamic – not a stable one.

If you are thinking that this is criminal, then you are absolutely correct. "

I suppose that in a few years people will talk about "Lazy and corrupted Americans", just like they do  with Greeks.

[JCDNWarrior]

I dont think raising taxes (which will usually be focussed on the middle class and poor anyway, if you let Politicians decide) but huge corporations should definitely pay more taxes, its a bit ridiculous in some cases, like Google with 2.5% tax compared to it's own employees paying 40% or more. Also, didn't JFK lower some taxes, and doubled the returns, the money that the government gained as a result?

I don't think the current U.S. (and EU too) debt can be dealt with in traditional ways though.

[Nuclear1]

Not really.  He advocated lowering taxes but saw the first peacetime deficit in US history.

[666maslo666]

Disband the FED and declare all debt own to it, along with intragovernmental holdings (the absurdity of government owing debt to itself) null and void. Instant reduction of debt by almost half.

The rest are genuine bonds to foreign and private entities that should be paid back unless you want to steal. But that can be paid back with modest tax increase even to the level of balanced sheet.

[Grizzly]

Tax raises are never talked about, but should happen. The US need some revenue, but it seems they forgot that the states' main source of income is taxes, and that said income has been cut rather severely.

Problem is Americans hate taxes, possibly more so than many other countries in the world. Hell the USA wouldn't even exist if Americans didn't mind paying lofty taxes (or being taxed without representation, or being drafted into ze royal navy, but I jest...)

You can't compare the situation with American debt to any other country reliably for two good reasons: firstly because the US deals with far more money than any other country in the world and secondly because US debt affects the entire world. There's a proverb which origins escape me: when the US sneezes the world catches a cold.

It don't matter though. When China and America duke it out in the Great Resource Wars us Scots will sit comfortably in our hills with our renewable wind and wave power, laughing as England and Holland are flooded by the polar ice caps.

Holland flooding is a contradictio in terminis. Well, it happens nowadays, but that is only because we planned for it, so nobody lives there .

[Unknown Target]

I think we should start paying back our debt with goods, services, and labor.

It's possible, but it requires the leadership at the top to change.

Here's a great example; Japan is our second largest creditor. If we gave them all the money we borrowed from them right now, they would use it to rebuild their country. Why not start up American industry again for that very purpose, and rebuild it for them? In doing so, we'd be helping ourselves actually get back on our feet and become a functioning country again. Rather than just producing endless plastic crap, we would be able to produce real goods for real needs.

The first question people ask me is; "How would you pay for it?". Trust me when I say we can pay for it. But trust me too when I say you probably can't pay for it in dollars - you'll have to find other ways of letting people be happy, besides shoving cash in their face and telling them to buy stuff they don't really need or want.

[Beskargam]

Disband the FED and declare all debt own to it,

me thinks bad idea. FED is necessary.

someone mentioned inflation rate. . .which is less than 3% (2.68 i think). . .which is good

plus not sure if now is the time to address the deficit. knifes edge balance between waiting to long or going to soon on it

[Unknown Target]

Disband the FED and declare all debt own to it,

me thinks bad idea. FED is necessary.

someone mentioned inflation rate. . .which is less than 3% (2.68 i think). . .which is good

plus not sure if now is the time to address the deficit. knifes edge balance between waiting to long or going to soon on it

Why do you think the Fed is necessary? It wasn't in the original founding...it's only 98 years old. Could you explain to me in layman's terms the pros and cons for keeping it, please? I'm genuinely curious to know both sides.

[General Battuta]

The Fed allows for control of the money supply which is a powerful tool for economic policy. Good use of the Fed is (maybe) one of the reasons that the economy has been so much tamer in the past decades. For example the late-80s (1987?) stock market crash never even really hit the economy because of Fed intervention iirc.

[Beskargam]

darn he beat me. FED also insures banks and makes sure there are no runs on banks by loaning them money which they have to pay back with interest.  (btw all the money we in the US bailed the banks out with has been repaid with interest)
The whole FDIC (Federal Deposit Insurance Corporation) insures all accounts up to 250 K meaning that if you dont go over that you can never lose your money if the bank fails. they regulate banks and in general the FED keeps the economy going more smoothly less boom and bust cycles.

edit: they are also in charge of tackling inflation which is important. instrumental to management od depressions, recessions, and inflation

[Unknown Target]

The Fed allows for control of the money supply which is a powerful tool for economic policy. Good use of the Fed is (maybe) one of the reasons that the economy has been so much tamer in the past decades. For example the late-80s (1987?) stock market crash never even really hit the economy because of Fed intervention iirc.

A lot of the criticism I've seen lately blames the Fed for rising inflation; something to do with keeping the interest rates near zero and the "quantitive easing" strategy being basically equal to printing more money under a different name. True/false?

darn he beat me. FED also insures banks and makes sure there are no runs on banks by loaning them money which they have to pay back with interest.  (btw all the money we in the US bailed the banks out with has been repaid with interest)

Where did you see that? Last I saw the US was still overloaded with toxic assets, and the ones they didn't have they had to dump at a loss for the most part.

The whole FDIC (Federal Deposit Insurance Corporation) insures all accounts up to 250 K meaning that if you dont go over that you can never lose your money if the bank fails. they regulate banks and in general the FED keeps the economy going more smoothly less boom and bust cycles.

edit: they are also in charge of tackling inflation which is important. instrumental to management od depressions, recessions, and inflation

Is the FDIC actually a part of the Fed? It also seems to me that ever since WW2 the US's entire economic history has been one of boom and busts in different markets. Especially recently - first there was the tech bubble, then the internet bubble, then the auto crash, then the housing bubble and crash, then the credit bubble and crash, and now the rising student loan bubble.

[General Battuta]

You're not wrong, you're just not right.

[Beskargam]

gah i cant figure out how to quote right. ok so here goes.

the whole quantitative easing thing and keeping interest rates near zero is so banks will start lending to one another and to business, students, homeowners, Darth sidious etc. this is designed to bolster economice growth and get us outa recession.

now the inflation rate might be climbiming some but in not enough amounts to worry about. what we have is good now. link here http://www.fintrend.com/inflation/Inflation_Rate/CurrentInflation. top of the chart.


and the US banks repayment was by my econ teacher. ill see if i can find something talking about it.

yes the FDIC is part of the FED. mustang could prob give more info about the last ?

Edit: we are currently out of recession but in recovery.

[General Battuta]

I think the FDIC stands alongside the Federal Reserve as part of the same system but is not technically part of the Fed.

[Beskargam]

I think you are right and I stand corrected.

[Beskargam]

found about banks.
http://www.cbsnews.com/stories/2011/03/16/business/main20044087.shtml

they have mostly repaid the money lent out.  1 billion left.

[General Battuta]

Anyway, boom/bust cycles have been much dampened post-WWII, to the benefit of all. Monetary policy has in many cases worked very well.

[Buckshee Rounds]

now the inflation rate might be climbiming some but in not enough amounts to worry about. what we have is good now. link here http://www.fintrend.com/inflation/Inflation_Rate/CurrentInflation. top of the chart.

It is worth worrying about when your salary doesn't keep up. Not sure about the US but certainly over here inflation is going at a much faster pace than the average pay rise. Things cost more than we have money for. A good example would be freddo bars. I remember them costing 10p when I was a kid. Then they went up to 15p. Then 17p. Hell some places are seeling them for 21p! That's a rise of over 100%!

You know inflation is bad when 10p packets of crisps cost 15p. /Kevin Bridges quote