Weekend Wars: Tin Foil vs. True Fact
As we approach the supposed doomsday of capitalism and the victory of Marx, welfare and all other utopian pan handling, mentally masturbatory theorems I have but one question… what if this is all a front?
What if the day America goes bankrupt is just an ingenious Washingtonian plot to achieve their tax hike without ever actually having to implement it? Follow me into the land of tin foil hats and black helicopters…it may not be sane or logical, but it is so much more fun on this side of the coin.
How do governments make money? Taxing citizenry, correct? I am confident to suppose you would all agree to a lesser or greater extent. Well what if our upcoming August 2nd date of reckoning is nothing more than a masked modus of advanced taxation theory?
Let’s be real the Democrats give food stamps to the poor(er) and the Republicans to the rich(er), while the massive majority of us working hard for our daily bread bicker over who is right. With a looming debt default, isn’t every rational minded investor tempted to cash in their capital gains? Isn’t it rational to take the tax hit and make off with your profits before the dollar goes circling the drain?
After all, the debt ceiling is not something that can be imposed by any higher power. The current Washingtonian stand-off over fiscal politics is nothing but a performance for the plebs. Think of all the cap gains tax revenue that could be generated if American stock holders were tempted to cash in tomorrow?
Maybe my tin foil hat is wrapped around the skull to tight… but what if I am right? What if a year plus worth of gains and forced liquidation for many investors is really nothing more than a tax ploy prior to a re-raise of the mythical debt ceiling? Enjoy what is left of the weekend, boys and girls.
I'm not sure if that is the concrete "reason" but it is definitely an interesting theory. I personally think that for the first time in years, the politicians are listening to the voters. Republicans are finally reacting to the suposed planck of fiscal conservatism. Personally I think Democrats are being irresponsible by hampering debate so much. Rather than find a long term solution to the debt problem in this country, they would rather hold fat to their own ideals. 75% of America is for a BBA, most think real cuts in government spending are needed (read: not decreases in future increase), and Obama's approval is dropping like a stone. And there lies the reason all this is happening. Congress' approval rating is so low continually because it is used as the device to implement or block the President's unpopular policies. So while Obama has done NOTHING BUT COMPLAIN AND STAGNATE the discussions, the blame falls on Congress. That's why Obama's approval isn't like 30%. He has done nothing, but he will take credit for the compromise. Whether America believes him is another thing.
It definitely is an interesting theory. Couple your theory with the fact that if the government defaults, and stops paying its bills, it stops spending. In other words, the fastest way to bring spending to zero is to stop spending. Couple this with your theory and you can solve a budget crisis, and simply blame each other.
I don't think Congress is that smart (I think they are smart enough to come up with that plan, but I don't think they are smart enough to execute it).
I don't even think default is the real issue, I think downgrade is. The minute the US loses its AAA rating, two-thirds of the global sovereign debt market disappears for all those buyers required to purchase AAA. We can have an 11th-hour deal that staves off default and still lose our AAA rating.
And at this point, I think a downgrade is inevitable. Strap in, kids.
What's sad is that I was watching Bloomberg (I think) and they said some banks are re-writing their covenants so they can buy "AAA OR Government debt". Now that's sad.
Bloomburg- A more revealing calculation is the CBO's measurement of what's called the fiscal gap. That figure is conceptually cleaner than the national debt -- and consequently more alarming. Boston University's Kotlikoff has extended the agency's analysis from 2085 out to the infinite horizon, which he says is the only method that's invulnerable to the frame-of-reference problem. It's an approach used by actuaries to make sure that a pension system doesn't contain an instability that will manifest itself just past the last year studied. Years far in the future carry very little weight, converging toward zero, because they are discounted by the time value of money. Even so, Kotlikoff concluded that the fiscal gap -- i.e., the net present value of all future expenses minus all future revenue -- amounts to $211 trillion.
Its not all Dems fault why we are here, but they far and away the party on the wrong side of the issue this time. Its both parties time to put America first, and I don't care who comes to the table with the initiative. Shit needs to be straightened out, and quick. No more base line budgeting (implemented in the 60's), no more world police, dump the DoED, NEA, NPR, the EPA and 95% of regulatory agencies.
People are serious and WS is getting tired of being the whipping post every time government policy and regulation backfire. Those who claim association to the Tea Party are only about 10% of the U.S. pop, but in poll after poll their fiscal policies come in at 65% or greater amongst the voting public. Amazing what labels will do. Quit name calling. Quit labeling and get shit right.
The USA is 7th, 7TH!!! on a list of easiest countries to do business... at least that's what Stossel reported.
OK...I'll bite. Why is Stossel a fraud?
I don't really care, he's just more consistent than most news outlets. So I don't have quite the aversion to sighting stats he reports as opposed to others.
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