R.I.P. UK

[Arraya]

Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”

[briansd1]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Well, then you will have future crises.

Like I said, the test of leadership is to cut spending and increase taxes during good economic times, not now.

You have to act today to solve today’s problems first. Then you can act to prevent future problems. One thing at a time, in order of priority.

[briansd1]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Well, then you will have future crises.

Like I said, the test of leadership is to cut spending and increase taxes during good economic times, not now.

You have to act today to solve today’s problems first. Then you can act to prevent future problems. One thing at a time, in order of priority.

[briansd1]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Well, then you will have future crises.

Like I said, the test of leadership is to cut spending and increase taxes during good economic times, not now.

You have to act today to solve today’s problems first. Then you can act to prevent future problems. One thing at a time, in order of priority.

[briansd1]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Well, then you will have future crises.

Like I said, the test of leadership is to cut spending and increase taxes during good economic times, not now.

You have to act today to solve today’s problems first. Then you can act to prevent future problems. One thing at a time, in order of priority.

[briansd1]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Well, then you will have future crises.

Like I said, the test of leadership is to cut spending and increase taxes during good economic times, not now.

You have to act today to solve today’s problems first. Then you can act to prevent future problems. One thing at a time, in order of priority.

[Allan from Fallbrook]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Arraya: And here you see the problem with those that stake their futures on theory and not the reality staring them in the face right now.

The Das article did a good job of debunking the magical thinking that is passing for economic theory right now. “Yup, we’ll raise taxes to match spending”. Uh, but what if, like in the case of Greece, that isn’t an option? Crickets.

This is going to get Godawful ugly and all the pablum, nostrums and anodyne solutions aren’t going to help one iota. The time for jawing about this is long over, and you can bet the Europeans know full well what they’re confronting, its going to come down to whether or not they have the political will to deal with it. Same goes for us.

[Allan from Fallbrook]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Arraya: And here you see the problem with those that stake their futures on theory and not the reality staring them in the face right now.

The Das article did a good job of debunking the magical thinking that is passing for economic theory right now. “Yup, we’ll raise taxes to match spending”. Uh, but what if, like in the case of Greece, that isn’t an option? Crickets.

This is going to get Godawful ugly and all the pablum, nostrums and anodyne solutions aren’t going to help one iota. The time for jawing about this is long over, and you can bet the Europeans know full well what they’re confronting, its going to come down to whether or not they have the political will to deal with it. Same goes for us.

[Allan from Fallbrook]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Arraya: And here you see the problem with those that stake their futures on theory and not the reality staring them in the face right now.

The Das article did a good job of debunking the magical thinking that is passing for economic theory right now. “Yup, we’ll raise taxes to match spending”. Uh, but what if, like in the case of Greece, that isn’t an option? Crickets.

This is going to get Godawful ugly and all the pablum, nostrums and anodyne solutions aren’t going to help one iota. The time for jawing about this is long over, and you can bet the Europeans know full well what they’re confronting, its going to come down to whether or not they have the political will to deal with it. Same goes for us.

[Allan from Fallbrook]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Arraya: And here you see the problem with those that stake their futures on theory and not the reality staring them in the face right now.

The Das article did a good job of debunking the magical thinking that is passing for economic theory right now. “Yup, we’ll raise taxes to match spending”. Uh, but what if, like in the case of Greece, that isn’t an option? Crickets.

This is going to get Godawful ugly and all the pablum, nostrums and anodyne solutions aren’t going to help one iota. The time for jawing about this is long over, and you can bet the Europeans know full well what they’re confronting, its going to come down to whether or not they have the political will to deal with it. Same goes for us.

[Allan from Fallbrook]

[quote=Arraya]Ok, what if it is NEVER a good time to cut spending.

” I picked the wrong day to quit sniffing glue”[/quote]

Arraya: And here you see the problem with those that stake their futures on theory and not the reality staring them in the face right now.

The Das article did a good job of debunking the magical thinking that is passing for economic theory right now. “Yup, we’ll raise taxes to match spending”. Uh, but what if, like in the case of Greece, that isn’t an option? Crickets.

This is going to get Godawful ugly and all the pablum, nostrums and anodyne solutions aren’t going to help one iota. The time for jawing about this is long over, and you can bet the Europeans know full well what they’re confronting, its going to come down to whether or not they have the political will to deal with it. Same goes for us.

[DWCAP]

ok, so we agree that this is a debt crisis that will take years to fix, right? This isnt a 2001 7 month bender.

And we further agree that once things are better, we will have to reduce public spending, and raise taxes, to fill the hole.

So, lets say we follow krugman and spend our way to prosperity, and in 2014 or so we have 7% unemployment, and alittle inflation to goose things along, and lower default rates on bank loans because people are working again…. etc etc. Things are now better economic times.

Then it would finally be time for the austerity parts right?

Gov spending would fall, firing all the people who had been hired to service that spending. And Taxes would rise, further agravating the situtation as private hiring and spending adjusts downwards. We would be met with a situtation where we have increasing unemployment, increasing taxation, decreasing economic activity, and higher debt loads as inflation will not allow interest rates to be this low again (we have been printing like mad remember).
Plus, with the added debt, tax revinues will be used to service debt, not spending, leaving us with less resources for the next recession. Plus, the private debt issues, which we have not really addressed in any meaningful way, come back when increasing unemployment meets the insane debt levels we still have. (what is the median backend modified debt to income in HAMP, 65% AFTER modification?)

Sound like a worse situtation than we are in now. More taxes, more debt, more unemployment, more inflation, and fewer public resources.

Sure, 2011-2013 were not so bad. But what is 2015 gonna look like? How does this improve our situtation?

Its like investing with $$ you got from a cash advance on your Credit Card. If you arnt making over 20% returns, you are actually loosing money. How many people can make 20% returns for years and years and years? How much are you willing to bet that our Federal Government is the one who can be money wise enough to pull it off?

[DWCAP]

ok, so we agree that this is a debt crisis that will take years to fix, right? This isnt a 2001 7 month bender.

And we further agree that once things are better, we will have to reduce public spending, and raise taxes, to fill the hole.

So, lets say we follow krugman and spend our way to prosperity, and in 2014 or so we have 7% unemployment, and alittle inflation to goose things along, and lower default rates on bank loans because people are working again…. etc etc. Things are now better economic times.

Then it would finally be time for the austerity parts right?

Gov spending would fall, firing all the people who had been hired to service that spending. And Taxes would rise, further agravating the situtation as private hiring and spending adjusts downwards. We would be met with a situtation where we have increasing unemployment, increasing taxation, decreasing economic activity, and higher debt loads as inflation will not allow interest rates to be this low again (we have been printing like mad remember).
Plus, with the added debt, tax revinues will be used to service debt, not spending, leaving us with less resources for the next recession. Plus, the private debt issues, which we have not really addressed in any meaningful way, come back when increasing unemployment meets the insane debt levels we still have. (what is the median backend modified debt to income in HAMP, 65% AFTER modification?)

Sound like a worse situtation than we are in now. More taxes, more debt, more unemployment, more inflation, and fewer public resources.

Sure, 2011-2013 were not so bad. But what is 2015 gonna look like? How does this improve our situtation?

Its like investing with $$ you got from a cash advance on your Credit Card. If you arnt making over 20% returns, you are actually loosing money. How many people can make 20% returns for years and years and years? How much are you willing to bet that our Federal Government is the one who can be money wise enough to pull it off?

[DWCAP]

ok, so we agree that this is a debt crisis that will take years to fix, right? This isnt a 2001 7 month bender.

And we further agree that once things are better, we will have to reduce public spending, and raise taxes, to fill the hole.

So, lets say we follow krugman and spend our way to prosperity, and in 2014 or so we have 7% unemployment, and alittle inflation to goose things along, and lower default rates on bank loans because people are working again…. etc etc. Things are now better economic times.

Then it would finally be time for the austerity parts right?

Gov spending would fall, firing all the people who had been hired to service that spending. And Taxes would rise, further agravating the situtation as private hiring and spending adjusts downwards. We would be met with a situtation where we have increasing unemployment, increasing taxation, decreasing economic activity, and higher debt loads as inflation will not allow interest rates to be this low again (we have been printing like mad remember).
Plus, with the added debt, tax revinues will be used to service debt, not spending, leaving us with less resources for the next recession. Plus, the private debt issues, which we have not really addressed in any meaningful way, come back when increasing unemployment meets the insane debt levels we still have. (what is the median backend modified debt to income in HAMP, 65% AFTER modification?)

Sound like a worse situtation than we are in now. More taxes, more debt, more unemployment, more inflation, and fewer public resources.

Sure, 2011-2013 were not so bad. But what is 2015 gonna look like? How does this improve our situtation?

Its like investing with $$ you got from a cash advance on your Credit Card. If you arnt making over 20% returns, you are actually loosing money. How many people can make 20% returns for years and years and years? How much are you willing to bet that our Federal Government is the one who can be money wise enough to pull it off?

[DWCAP]

ok, so we agree that this is a debt crisis that will take years to fix, right? This isnt a 2001 7 month bender.

And we further agree that once things are better, we will have to reduce public spending, and raise taxes, to fill the hole.

So, lets say we follow krugman and spend our way to prosperity, and in 2014 or so we have 7% unemployment, and alittle inflation to goose things along, and lower default rates on bank loans because people are working again…. etc etc. Things are now better economic times.

Then it would finally be time for the austerity parts right?

Gov spending would fall, firing all the people who had been hired to service that spending. And Taxes would rise, further agravating the situtation as private hiring and spending adjusts downwards. We would be met with a situtation where we have increasing unemployment, increasing taxation, decreasing economic activity, and higher debt loads as inflation will not allow interest rates to be this low again (we have been printing like mad remember).
Plus, with the added debt, tax revinues will be used to service debt, not spending, leaving us with less resources for the next recession. Plus, the private debt issues, which we have not really addressed in any meaningful way, come back when increasing unemployment meets the insane debt levels we still have. (what is the median backend modified debt to income in HAMP, 65% AFTER modification?)

Sound like a worse situtation than we are in now. More taxes, more debt, more unemployment, more inflation, and fewer public resources.

Sure, 2011-2013 were not so bad. But what is 2015 gonna look like? How does this improve our situtation?

Its like investing with $$ you got from a cash advance on your Credit Card. If you arnt making over 20% returns, you are actually loosing money. How many people can make 20% returns for years and years and years? How much are you willing to bet that our Federal Government is the one who can be money wise enough to pull it off?

[Author]

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