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malaise

(267,808 posts)
Sun Jan 6, 2013, 12:26 PM Jan 2013

The fiscal crisis was ordained 10 years ago when George Bush, Dick Cheney and their neocon cronies

conned and manipulated the country into an extravagant military venture under false pretenses against an enemy that did not threaten us. The Iraq War, which cost tens of thousands of American casualties, removed a check on Iran and left the Middle East considerably less stable. The ultimate cost to the U. S. economy will reach $4 trillion, according to a Wall Street Journal MarketWatch report. That war, and the Bush tax cuts, which squandered the fiscal surplus of the Clinton years, were a direct cause of the 2008-09 recession and today's budget crisis. This salient point receives too little attention in the ongoing debate. Many who supported that ill-founded war are the same guys who don't want to pay for it by slightly raising high-income people's taxes, preferring instead to raise yours and to cut your government services.

On Thursday, the first day of the new Congress, Sen. Mitch McConnell, R-Ky., and other Republican obstructionists clearly indicated their intention to force another fiscal crisis in early March when the national debt ceiling must be raised. They threaten to hold the increase hostage to getting spending cuts in entitlement programs. They are spreading the lies that a debt ceiling increase opens new spending avenues for the president. It doesn't. The debt ceiling must be raised in order to cover the country's existing obligations. Without the increase, the faith and credit of the United States is damaged and global financial stability will be threatened.

This rich country has resources to cover the extravagance of the Bush years, but they're accumulated in estates of the very rich and powerful corporate interests who neither create jobs nor stimulate a national economy. Instead of threating to break entitlement contracts with the working middle class and defaulting on existing obligations, we should be adding higher rate brackets to the federal income tax code as we did in the mid-20th century when the nation experienced one of its most dynamic economic expansions ever. By the way, the top bracket then was over 90 percent.

http://www.tahoedailytribune.com/article/20130105/ARCHIVES01/130109951/1059&parentprofile=1059

13 replies = new reply since forum marked as read
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malaise

(267,808 posts)
5. I will never forget that quote
Sun Jan 6, 2013, 01:23 PM
Jan 2013

They don't quote that war criminal of a dick these days even though they never opposed him. ReTHUGs continue to ignore eveything they supported under Bush. Lyan Ryan is a classic example of a hypocrite.

young_at_heart

(3,758 posts)
4. Always overlooked by the media
Sun Jan 6, 2013, 01:21 PM
Jan 2013

Wouldn't be wonderful if Bush/Cheney and their cohorts were held to scrutiny?

HereSince1628

(36,063 posts)
8. The asset value of the US is about 188 trillion our debt is ~16 trillion
Sun Jan 6, 2013, 01:26 PM
Jan 2013

Last edited Sun Jan 6, 2013, 06:40 PM - Edit history (1)

Borrowing costs have been at historic lows...

What family with an over 50 dad, out of work, with less than 10% debt burden would be criticized for looking at borrowing as a way to create a business and down the roads jobs for all the kids?

Who in this situation would simply fold saying it's time to quit looking to move up and settle on part-time jobs that would mean we can't afford dr's and dentists and will have to throw grandpa out of the house to do the best he can begging on the street?

This is the advice of serious politicians? These are the politicians who told us of the virtures of kitchen table economics?













 

grahamhgreen

(15,741 posts)
10. But borrowing for war, has little multiplier effect in our economy
Sun Jan 6, 2013, 03:17 PM
Jan 2013

It's the worst thing to spend money on

HereSince1628

(36,063 posts)
12. I think I am not talking about war, but I'd agree that Iraq was stupid
Sun Jan 6, 2013, 03:39 PM
Jan 2013

Conflict in Afaghanistan and Pakistan may have been unavoidable owing to the presence of bin Laden, but it certainly didn't have to be turned into protracted and expensive war.

Even with all the mistaken spending the US still has a debt to asset ratio that is extraordinarily favorable.

The sandlandistan conflicts equal the value of only about 3/4's of the value of gold held by the US, and the nation's assets amount to over 100 times the value of the gold reserves.

My point isn't that spending can't be cut. It surely could be. Policing the world and having the power to be the bully of the world is expensive and even accepting that the nation has made a shitload of enemies in the process/

My point is that a family with similar debt structure wouldn't hesitate to borrow money if it had a useful idea that could be turned into business and employment opportunities.





 

grahamhgreen

(15,741 posts)
13. Yes, in the end the op to capture bin laden was really police work, the
Sun Jan 6, 2013, 04:14 PM
Jan 2013

war was a waste of money, IMHO.

We need to slash, not cut, defense. If we plowed the same defense money into windmills and solar, we could be off big oil in a decade.

 

grahamhgreen

(15,741 posts)
9. We still need more revenues. Extending the Bush tax cuts for Hoarders was a bad idea last week
Sun Jan 6, 2013, 03:13 PM
Jan 2013

We lost 300 billion from reducing the inheritance tax and short term capital gains

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