No idea, EMF. I don't see anything in your question that implies you are gay. Either we are missing something, or maybe james R has his panties in an especially tight wad today. Maybe he will explain his overly hostile remark.
;-)
No idea, EMF. I don't see anything in your question that implies you are gay. Either we are missing something, or maybe james R has his panties in an especially tight wad today. Maybe he will explain his overly hostile remark.
;-)
We'll have to get by with less. Like we should have been doing a long time ago.
Looks like a lot of people are suffering from normalcy bias.
NOT RAISING THE DEBT CEILING != DEFAULT
No social security checks, old people riot, the federal government exterminates them.
to spur the economy, state sales taxes should be made illegal. that would make goods and services 10% cheaper.
We won't technically default. Interest payments will continue to be made and checks will go out. We have to cut spending by 43% to live off of what we have coming in so a temporary govenment shutdown is a likely result. OUr govenment is so bloated you probabaly won't notice. Don't let policians scare you. Their lust for more of our money is so great they are willing to threaten Grandma with losing her social security check or claim that we are facing a calamity. In Washington, it is an emergency if they have to do with one dollar less. By the way, there are no cuts in any plan. All federal budgets are done on a baseline with 10 year scoring. The baseline is about a 7% increase in spending per year. So if they spend 5% next year, it is scored as a 2% cut. This is insane accounting that wouldn't work for a lemonade stand. For example, if we froze goverment spending for 10 years, the CBO would score that as a 9 trillion dollar cut because of the baseline!! The real problem comes in about 20 years when spending on Medicare, Social Security and interest on the debt will take 100% of the budget. Please read that last sentence again and think about it. We have to make some serious changes or we are finished. Work hard, stay out of debt and save a minimum of 10% of your income and you will be fine. Margaret Thatcher once said " The problem with socialism is that eventually you run out of other people's money. " We are almost there.
If we eliminate the corporate income tax, goods would be 35% cheaper! Corporations don't pay taxes, you do. It is built into the cost of every good and service you use.
sub3over40 wrote:
If we eliminate the corporate income tax, goods would be 35% cheaper! Corporations don't pay taxes, you do. It is built into the cost of every good and service you use.
And corporate taxes make up 35% of a businesses total cost? You are only off by close to an of magnitude. Start with:
1) tax is on profits, not expenditure
i go running
The 70 year long failed U.S. siege of Palestine would end. Millions of imprisoned Semitic and Caucasian people would be released from Israeli gulags, death camps, and ghettos. The curse of N A Z I Z I O N I S M would cease.
26mi235 wrote:
sub3over40 wrote:If we eliminate the corporate income tax, goods would be 35% cheaper! Corporations don't pay taxes, you do. It is built into the cost of every good and service you use.
And corporate taxes make up 35% of a businesses total cost? You are only off by close to an of magnitude. Start with:
1) tax is on profits, not expenditure
The cost of product is based on the profit, not on the total expenditure of the company. Companies produce products and services for profits, not expenditures. Do you know how much it costs to comply with the federal tax code??? Do you know how much time and money are invested to comply with the IRS? Compliance with the tax code makes business infinitely more expensive. That cost is built into everything you buy. If you we had no corporate tax, money and jobs would flood back to the US. We would be able to kick other country's butts in competetiveness. We are being killed because we are not competitive with the rest of the world. Don't worry, it will never happen. The goverment doesn't care about prosperity, only control.
If we default? I'll probably wake up and run my morning 10.
As a very immediate issue there could be no student loans. For the past year or two the government has started providing the money for student loans rather than just guaranteeing them. Come September when schools would get $20,000-60,000/student they may simply not open. Then you have a very large population of young people, ranging from the 18 year old college freshman to the 26 year old law student, to the 28 year old med student, to the 30 year old PhD student, to the person who went back to school to get a better job (which was very common among people who lost their jobs in 2008). That is a very bad situation.
In the longer term, if the US's credit rating is downgraded the effects will cascades. The debt of every state, Egypt, Israel, and the "too big to fail" banks are back by the United States Federal Government. If the Federal Government's credit rating falls it will drag down all the rest down with it.
Incidentally, most defaults by a country are caused by the political situation rather than the economic so just blaming Congress will not matter.
Congress needs to grow up and do what is right. That includes having the extreme right (Tea Party Republicans) recognize that compromise is necessary in a democracy.
US "Defaults" ? - NO
1. There will be no real default with creditors. The Treasury said that the creditors get paid first if no ceiling hike.
2. If there is a ceiling hike the rating agency will downgrade the US from AAA to AA because it is unlikely any cuts will tackle the long term liabilities.
gold goes to 1700 an ounce
3. Small debt cut is offset with the higher interest payments from the downgrade.
4. Pension fund will drop treasuries because its not AAA. Further putting pressure on the yields.
gold goes to 2000 an ounce
5. Japan sells 250 billion of treasuries to offset its holdings of US debt to finance its retiring population.
6. No one wants US debt and the US starts QE3, QE4, QE5 and monetizes debt to pay for things.
7. 2013 we have hyperinflation.
Gold goes to 10,000+ an ounce
hah. says the fan of a proven cheater in the sport. btw whats up with this post people? just a bunch of trolling going on, lets talk running!
Rashid Ramzi 2012 wrote:[quote]Rashid Ramzi 2012 wrote:
LOL @ all the chicken littles on this board. I love listening to white people with too much time on their hands.
Yes.
But the time model for 2013 is a little early. Japan will not liquidate large amounts of bonds.
And also China won't as well. They want to protect the dollar, so they can buy nice shiny things with their hoard and keep their goods cheap in relation.
The only country that has legitimate debasement incentive is the U.S, debasement means cheaper debt load in real terms, but the catch is America depends on cheap oil. Real catch 22.
I see eventual hyperinflation, and default, but it depends on the situation we find ourselves in, with regards to oil, resources, and the economic atmosphere. America isn't quite a hollowed out corpse yet. There's still some meat on the bone. When thats gone, there will be a default and a year or so after that hyperinflation, keep in mind all of this will probably occur during a large violent war. Forth turning.
Saving the dollar means only one thing, debt serfdom to China, Japan, and the other Asian nations. This debt serfdom is moot due to nuclear weapons and sovereignty over ownership etc, but no one legitimate or serious puts that on the table.
Yours is a horribly simplistic look at taxes. Just look at the taxes on flights. Since the FAA is shut down they can't collect those taxes right now. What did airlines do? They raised prices to exactly the difference. So getting rid of the tax did nothing to the price paid by consumers, it was just a windfall to airline companies.
If we don't raise the debt ceiling we will default on our obligations, and defaulting on ANY obligation is default, period. Let me say it another way: congress has already guaranteed to pay certain services - social security, the military, etc, and NOT paying those guarantees is default. We won't suddenly come to "live within our means," as certain republicans seem to think.
Imagine you're looking at the things you've bought this month - car payment, mortgage, school fees, taxes, etc, and you don't have enough money to pay for it all. Do you decide to only pay for the "essential" (however you define that) things, and then magically "live within your means" all of a sudden? No! You've already bought that stuff, and now need to find a way to pay for it. Not paying for any one specific thing will shaft your credit and really screw your future payments.
Le sigh.
Thats the kind of thing that happens before revolutions.