1. Welcome to CowboysZone!  Join us!  Come on!  You know you want to!

New Government Program announced

Discussion in 'Political Zone' started by Rackat, Aug 18, 2009.

  1. Rackat

    Rackat Active Member

    2,134 Messages
    0 Likes Received
    It is possible to remedy ignorance, but you can't fix stupid.
  2. DFWJC

    DFWJC Well-Known Member Zone Supporter

    22,636 Messages
    2,017 Likes Received
    That was the #1 issue that fiscal conservatives had with Bush...they felt he sold out as far as deficit control. True, the war had much to do with these costs, but there was more to it. He had to look the other way when large sums of spending were added to the budget as a trade for committment to the war by basically everyone from both parties. It sucked.

    Even after all of that--and the enormous hand-wringing when the deficit reached 500 billion---it was NOTHING compared the spending going on now.
    By Sept 30th, 2009, the US budget defit will reach $1.8 TRILLION!!!!!!!

    So this is not the giant 20% increase that some feared (which would make it 600 billion) it is more than 10 times worse! The numbers are so large people lose grip on what we are talking about.
  3. zrinkill

    zrinkill Diamond surrounded by trash

    32,845 Messages
    611 Likes Received
    [IMG]

    What a Maroon!
  4. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    And the U.S produces over 14 trillion dollars of GDP a year. During WWII our debt went over 100% of GDP. The deficit is an important matter that needs to be taken care of after the recession ends, but all of this panic is absurd.
  5. ABQCOWBOY

    ABQCOWBOY Moderator Staff Member

    34,511 Messages
    1,499 Likes Received
    Perhaps, but not nearly as absurd as the Stimulus, Omnibus or TARP. Essentially, all huge spending bills sold to America guised as critical to the health of our Economy. Pure BS.
  6. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    You seem to be stating that as a fact. based on what?
  7. ABQCOWBOY

    ABQCOWBOY Moderator Staff Member

    34,511 Messages
    1,499 Likes Received
    Based on the fact that it's all special interest money.
  8. DFWJC

    DFWJC Well-Known Member Zone Supporter

    22,636 Messages
    2,017 Likes Received
    I think part of the "panic" by some folks is the baggage that comes with this spending. It relates directly to an exponentially increasing government footprint.

    But there is the real side note--
    The U.S. is very dependent on foreign countries buying our bonds, the proceeds of which are used to finance our deficit. With our total debt increasing so rapidly, how long will it take before foreigners start having real concern over our bonds? More specifically, at some point, foreigners may demand higher interest rates on our bonds as an incentive to keep buying them. Things start unraveling quickly once that happens.

    There there is a severe price we will have to eventually pay for this massive monetary stimulus program.
  9. ABQCOWBOY

    ABQCOWBOY Moderator Staff Member

    34,511 Messages
    1,499 Likes Received
    That has already started. Notice that our Government has already started buying up our own bonds before they even hit the street. It's a tell tale sign that our Government has no confidence in being able to sell them abroad. This is really not good.
  10. iceberg

    iceberg detoxed Zone Supporter

    28,177 Messages
    1,212 Likes Received
    i can't think of any other reply that makes more sense to me for him than this. he won't listen, he wants nothing but libs on the supreme court so the constitution can be interpreted "properly" and in the end is just a fool only surpassed by those who keep pulling his foolish string.
  11. zrinkill

    zrinkill Diamond surrounded by trash

    32,845 Messages
    611 Likes Received
    That would be me ..... but I have my reasons

    ;)
  12. iceberg

    iceberg detoxed Zone Supporter

    28,177 Messages
    1,212 Likes Received
    hey - sometimes it's fun to put a quarter in the court jester.
  13. StanleySpadowski

    StanleySpadowski Active Member

    4,815 Messages
    0 Likes Received

    If WWII spending ended the Great Depression, then you'd have to admit that it wasn't the result of FDR's radical socialization.

    If the New Deal was then a failure, why would anyone support the socializing of America?
  14. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    I huge portion of the stimulus went to state aid which saved hundreds of thousands of state jobs. How is that special interest?

    And you think the Tarp was unnecessary?
  15. Kangaroo

    Kangaroo Active Member

    9,893 Messages
    0 Likes Received
    Yes the TARP was unnecessary business go bankrupt all the time they either reorganize in court and survive or someone else comes in and takes there place. It happens every day in this country what so hard about it to big to fail my left foot.
  16. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    Actually the New Deal made the situation a little better and kept our economy from getting worse in the short term. However, people don't realize that New Deal spending was pretty pedestrian from today's standards. On average our government spends like 35% of GDP, during the New Deal our government only spent like 20% of GDP. When we went to War our government peaked at spending 55% of GDP. Moreover, the regulations and programs put into place during the New Deal kept us from entering another depression for the next 70 or so years, whereas before the new deal we used to have depressions every 20 or 30 years.
  17. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    Well first of all you are assuming they go into Chapter 11 bankruptcy. The only reason why a company that was as bad off as GM was able to go into Chapter 11 is because they had financial support from the government, which I am assuming you were unhappy about. A much more likely scenario for many of the banks would be to go into Chapter 7, which means liquidation. Creditors would lose billions of dollars, and the FDIC would be forced to cover for millions of people, and that money doesn't grow on trees. Furthermore, you are ignoring the effect it would have on the credit market, which would essentially freeze, we would see massive deflation, and the economy would tank as a result. Letting the entire financial system fail is crazy.
  18. Kangaroo

    Kangaroo Active Member

    9,893 Messages
    0 Likes Received
    You mean the credit that is not flowing like before and has been tighten even with the loans; you mean the banks that are still going under and the economy that still tanked.

    We should have just ripped the bandaid off and yes; I think you like the Politician over worried about that instead of letting the market run it's course.

    Of course money does not grow on trees but we gave at a trillion like it does.
  19. TheRat

    TheRat The Silly Willy

    1,883 Messages
    23 Likes Received
    You don't think it could be astronomically worse in every regard? See 75 years ago.

    I'm not as worried about the deficit as some are, but we are eventually going to have to pay it off. Anyhow, the FDIC is a quasi government institution. I wonder why conservatives aren't up in arms about the FDIC taking over the smaller banks' assets when we let them fail. Seems kind of hypocritical.
  20. Kangaroo

    Kangaroo Active Member

    9,893 Messages
    0 Likes Received
    Know I do not believe it was that bad ; when the FDIC takes over they sell off the assets and closes down the bank not keep the bank afloat for bad business practices. The Banks also pay a fee to the FDIC every year as well.

Share This Page