bye bye money hey miro

[thesightless]

the expected taxation coming has forced the hand...

so far, we have had 10% of our clientele shift to foreign long term bonds...i.e. puttin the loot where it cant be touched.

miro, what ya think of this.

can he afford to implement the spending he says he wants to?

where will it take us?


lots more coming. i have been thinking it out to say it in a way that doesnt make look like i hate the man.

[Miroslav]

Re: bye bye money hey miro

the expected taxation coming has forced the hand...

so far, we have had 10% of our clientele shift to foreign long term bonds...i.e. puttin the loot where it cant be touched.

miro, what ya think of this.

can he afford to implement the spending he says he wants to?

where will it take us?


lots more coming. i have been thinking it out to say it in a way that doesnt make look like i hate the man.

well.......that's a really tough one now. I really can't speak my thoughts without typing up several paragraphs, so I apologize - it's Friday and I'm burnt out on work anyways. First, forget about his lofty liberal spending plans that he talked about back when he was campaigning. I think that now his dilemma looks a bit different, like this:

On one hand, massive government spending has always been a bellweather approach to dealing with an economy that's crashing - and ours surely is, about as bad as it ever has. The tax rebates and incentives that the government would give are less effective now, I think, as it doesn't help as much to give marginal cash increases to people who are losing their jobs and homes. What is much more effective is the use of government spending to create jobs - that means states going ahead and funding road reconstruction, so that the asphalt companies, the contractors, the restaurants by the road, etc. can keep their jobs and keep earning income. It's all about keeping as many people employed with a stream of income now as possible, because the loss of those jobs is the number one thing that will kill us all. It's a vicious cycle. And unemployment went from 6.8% to 7.2% in just a bit more than a month. That's HUGE and largely unprecedented in the last 50 years.

On the other hand...to your point, spending that kind of money has a massive price tag on it and it has to be paid for somehow at some point. I think the deficit is estimated at $1.2 trillion - and that's before Obama's stimulus package. I would wager that he may not be able to make the amount of tax increases he wanted to on the upper class...basically where the money is really going to come from is our future generations. So while wealthy people may be shifting money out of the nation for a variety of reasons, the real issue will be the staggering national debt that we will have. The government will simply print paper money and float debt to the rest of the world...and the potential impact in terms of the devaluation of our currency and the reluctance of foreigners to continue to buy US securities could be extremely painful to us. Worst case is something like (1) massive inflation if the central bank doesn't tighten up the money supply in time when things start to bottom out in the economy, and (2) something like an effective national bankruptcy where the government fails to meet its obligations, foreign trust completely collapses, and the dollar as we know it could disappear and be replaced by a new currency - where you get perhaps one unit of the new for every hundred units of the old that you had. We really don't want to go there.

Under ordinary economic times, I would agree that massive government spending needs to be avoided and that taxing ourselves into prosperity is simply a misnomer. But in the severe circumstances we find ourselves in, barreling towards double-digit unemployment....I dunno, there starts to be a strong case for doing something to keep people in jobs. It's painful later, but I don't know what else we can do to deal with this crisis now. When things get this dire, I don't think there is probably that much difference between the actions of an Obama administration and any other that could have had a realistic chance of being voted in - they're pretty much all going to jack up government spending one way or another to try to somewhat pick up the slack on the consumer and investment side.