When you get into too much debt, eventually really bad things start to happen. This is a very painful lesson that southern Europe is learning right now, and it is a lesson that the United States will soon learn as well. It simply is not possible to live way beyond your means forever. You can do it for a while though, and politicians in the U.S. and in Europe [...]
March 13, 2013
President Barack Obama warned America will not balance its budget within a decade because Republican plans to do so would entail slashing social programs many citizens rely on for support.
Even as he set out to woo lawmakers Tuesday on Capitol Hill, including Republican foes, Obama called for an approach that restores fiscal stability but also protects healthcare for the poor and the elderly and shields the middle class.
In an interview that was released this morning with former Clinton aide George Stephanopoulos on ABC, President Obama talked a little about his view of the debt.
“[W]e don’t have an immediate crisis in terms of debt,” Obama said. “In fact, for the next ten years, it’s gonna be in a sustainable place.”
Obama continued, “The question is, can we do it smarter, can we do it better? And– you know, what [...]
Yesterday we got the Paul Ryan budget.
It involved big tax cuts, eliminating Obamacare, and big cuts to virtually all categories of spending.
Today it’s the Democrats turn. The Democrats will introduce their first formal “budget” in 4 years at a press conference at 10:30.
Erik Wasson at The Hill reports on what will be in it:
The first budget from Senate Democrats in four years includes nearly $1 trillion in new taxes but would not balance [...]
Speaker John Boehner told House Republicans this afternoon that the GOP’s upcoming budget will balance the federal books in a decade.
Due to the Democrats’ control of the White House and Senate, the possibility of that promise becoming law is remote. But the speaker’s vocal support for the idea reportedly drew cheers within the House Republican conference.
‘Boehner and Cantor are taking revenge on Republicans who support a balanced budget.’
Peter Schiff with Sen. Rand Paul, yesterday. Runs 4 minutes.
Economist Michael Pento says forget the “Fiscal Cliff” you have been told about. Pento charges, “The real ‘Fiscal Cliff’ is the coming currency and bond market collapse.”
Michael Pento of Pento Portfolio Strategies contends the open-ended Fed money printing is creating “. . . a fictitious world of artificially low interest rates.” Pento says, “We need to move quickly towards a balanced budget . . . yes, it will be painful [...]
What happens when debt-fueled false prosperity disappears? Just look at Spain. The 4th largest economy in Europe was riding high during the boom years, but now the Spanish economy is collapsing with no end in sight. When a debt bubble gets interrupted, the consequences can be rather chaotic. Just like we saw in Greece, austerity is causing the economy to slow down in Spain. But when the economy slows [...]
By Farid Khavari
The residents of Miami-Dade County need and deserve more than a balanced budget achieved by cuts and layoffs. This is a direct path to financial disaster for our county. What Miami-Dade County residents need instead is a bright future with prosperity and economic security.
In stark contrast to all other mayoral candidates, I have a precise and well-thought-out economic plan to create a bright economic future for all Miami-Dade [...]
Why isn’t the U.S. economy in a depression right now? The number one reason is because the federal government has stolen more than five trillion dollars from future generations since Barack Obama was elected and has used that money to pump up our grossly inflated standard of living. Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up [...]
On July 30, 2011, a week after Cantor sabotaged the $3 trillion deal Boehner and Obama had agreed to and a day before the final “agreement” Boehner and McConnell made it clear in public statements that there were six non-negotiable demands which they could not budgeon:
THE GOP NON-NEGOTIABLES!
1) Either a Constitutional Amendment passed then to require a balanced budget OR the promise that the amendment would be fully vetted in [...]
You can almost hear the collective gasp from Ron Paul’s loyal band of supporters.
Speaking Monday at a town hall style-meeting event in Cleveland, presumptive GOP presidential Mitt Romney plunged a fork into the idea that he could come around to embracing Mr. Paul’s call for deep cuts in federal spending.
“My job is to get America back on track to have a balanced budget. Now I’m not going to cut $1 [...]
“SACRAMENTO – State Controller John Chiang today released his monthly report covering California’s cash balance, receipts and disbursements in April, showing monthly revenues came in $2.44 billion below (-20.2 percent) the latest projections contained in the Governor’s proposed 2012-13 Budget.
“The task of crafting a credibly-balanced budget has been made more difficult by a nine-month revenue shortfall of $3.5 billion,” said Chiang. “Without a timely, financeable budget plan, the State will be [...]
Even with tough political action, it will take Spain years to achieve a balanced budget – meaning that it will be essential to build private sector investors confidence to finance deficits and avoid a Greek-style default. If there is a big shortfall in private sector financing, funds from the European Stability Mechanism could prove insufficient to fill the gap.
An alternative emergency approach would be to mandate, on a temporary [...]
22 Signs That The Collapsing Spanish Economy Is Heading Into A Great Depression
April 29th, 2012
The Economic Collapse
What happens when debt-fueled false prosperity disappears? Just look at Spain. The 4th largest economy in Europe was riding high during the boom years, but now the Spanish economy is collapsing with no end in sight. When a debt bubble gets interrupted, the consequences can be rather chaotic. Just like we saw in Greece, [...]
European countries are expected to implement tough austerity measures amid the debt crisis. But Germany isn’t setting a very good example. SPIEGEL has learned that Berlin failed to reach its own austerity goals in 2011. And despite pressuring its neighbors to save, Germany is behind this year too.
As she travels from one European Union summit to the next, Angela Merkel’s constant mantra in recent months has been austerity, austerity, austerity. But apparently the German [...]
The real question that we face for all the markets is WHEN will the Sovereign Debt Crisisgo into meltdown? We are in the 13th year from the Major Directional Change of 1999 that marked the birth of the Euro, low in gold and crude oil, and the bubble in shares that peaked in many countries in 2000.
Just as the United States has been obsessed with the Great Depression as government always is ready to [...]
…Therefore, this whole idea that we can live the high-life, be whatever we dream and never have to pay the consequences is simply dead wrong. The confusion that the Gold Standard advocates have created is this misconception that we print money and that is “fiat” that results in inflation. This is a far too simplistic view of finance. It presumes “printing” of actual dollars without restraint. Simply put, HAD WE [...]
January 14, 2012
Spend, Spend, Spend. It’s the American Way.
By ROBERT J. SHILLER
GRIDLOCK in Congress implies that there won’t be any collective decision to spend more as a nation to get out of our slump. Increases in deficit spending seem unlikely, and so does the balanced-budget stimulus I’ve been advocating in this column. For now, we must pin our hopes for a robust recovery on the willingness of millions of consumers [...]
And so the focus shifts to the quietest neighborhood on the block: “The negative [Moody's] outlook on the province [of Ontario] reflects the softening economic outlook, Ontario’s growing debt burden, and the extended timeframe to achieving a balanced budget.” What’s next: someone dares to question the stability of Canadian banks which as we it turns out may have a few hundred billion in hyper-rehypo assets (Canadian Imperial Bank of Commerce (re-pledged $72 billion [...]
(ZH) The overnight agreement by 17 European countries to tighten euro-area budget controls and expand bailout funds fails to address key aspects of the crisis and may fall at the first hurdle, analysts and investors say. The summary of various Wall Street expert opinions is compiled and presented below from Bloomberg. It is not pretty.
Fidelity’s Trevor Greetham says the agreement misses the point; crisis not about govt profligacy, is a balance of payments [...]
* 30 billion euros in tax hikes, spending cuts
* Monti renounces own salaries
* Pension age to rise to 66 by 2018
By Giuseppe Fonte
ROME, Dec 4 (Reuters) – Prime Minister Mario Monti unveiled a 30-billion-euro ($40.3 billion) package of austerity measures on Sunday, raising taxes and increasing the pension age in a drive to shore up Italy’s strained finances and stave off a crisis that threatens to overwhelm the euro zone.
Packed into a [...]
1) Italian borrowing costs reach breaking point
“Italian borrowing costs reached breaking point on Wednesday after Prime Minister Silvio Berlusconi’s promise to resign failed to raise optimism about the country’s ability to deliver on long-promised economic reforms.
Italian 10-year bond yields shot above the 7 percent level that is widely deemed unsustainable, reflecting investors’ concerns that they may not get their money back, a fear reflected in a jump in the cost of [...]
The Cleveland school board voted to cut preschool, spring sports and busing for high school students Tuesday over the howls and boos from residents and teachers who packed the Lincoln-West High School auditorium.
In total, the board made $13.1 million in cuts to comply with the state’s requirement to have a balanced budget by Monday, the end of the month.
Board members said they had no choice but to make the cuts [...]
By Scott Smith, Record
STOCKTON – Just a few months after adopting a budget that cut from all corners of city services, Stockton already finds itself grappling with another general fund deficit of nearly $4 million.
This unsettling trend and more looming threats leave city leaders wondering where they can turn next to make up for declining revenue.
Whatever troubles may arise, Mayor Ann Johnston said that again targeting fire, police and other city employee [...]
WASHINGTON (AP) — Senate Republicans introduced legislation Thursday aimed at creating jobs by overhauling the nation’s tax laws, cutting business rules and boosting offshore oil exploration.
The GOP bill is called the “Jobs Through Growth Act” and doesn’t include a single item in President Barack Obama’s jobs legislation, which Senate Republicans killed in a Tuesday night vote.
“They believe that government [...]
Bill Clinton thinks he deserves more credit for reforming welfare and balancing the budget.
“I go crazy every time I read the conventional wisdom,” he said Friday night at his presidential library in Little Rock, Ark. “So part of the Republican narrative is that I was ‘saved’ from myself by the election of the Republican Congress [in 1994] that ‘forced me’ to do welfare reform and ‘made [...]
The Italian government today announced a cabinet meeting to authorise a confidence vote on an austerity package to speed its adoption amid the euro zone member’s burgeoning debt crisis.
Italy announced the €45.5 billion austerity package last month, but its credibility among investors had been undermined by several changes the government made in the following week.
After Prime Minister Silvio Berlusconi met with coalition leaders today [...]
Our current national debt is more than $14.4 TRILLION dollars and your personal share is more than $246,000! Using $40,000 as an average yearly income, this means our government has eaten through more than six years of our income.
If these numbers were the only debt piled on our heads it would be bad enough, unfortunately this $246,000 is only our share of the federal debt. [...]
The debt-and-deficit bill signed into law on Tuesday forestalled a dangerous federal government default. But it will also slash aid to states already reeling from the recession, almost certainly forcing them to curtail services and raise revenues to pay for programs once bankrolled by Congress.
The bill, which the Senate approved and President Obama signed into law Tuesday, will eventually raise the government’s debt limit [...]
I suffer from Tea Party envy. There is little about the actual party I like, and there are some members I abhor, but I am jealous of its sense of purpose, its determination and its bracing conviction that it is absolutely right.
In its own way, it waves a crimson battle flag while President Obama’s is a sickly taupe — the limp banner of an ideological [...]