The Economist (official group for The Economist newspaper)

The Economist (official group for The Economist newspaper)

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Charles H.

Resolution of fiscal cliff will either be by increasing rates or eliminating deductions. How about little of both? http://ht.ly/fsTov #sbfi

Commercial Lender Training and Strategist

  • Comment (28)
  • November 23, 2012
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  • Ray F.

    Ray

    Ray F.

    Owner at Wordforce Associates

    Charles - pain is inevitable in my opinion, so the "activity" of sharing it out does make sense - but that is the view of an outsider!

  • Chriss S.

    Chriss

    Chriss S.

    CEO American Exceptionalism Institute, Radio Host, Author, Adj Professor, Economist

    There is no fiscal cliff. There is only a beginning of austerity.

  • Bill J.

    Bill

    Bill J.

    CEO at Productivity Step Change www.productivitystepchange.com

    Why this false characterization of options limiting the choice to merely "increasing rates or eliminating deductions." What happened to monetization...ex nihilo?

  • Chriss S.

    Chriss

    Chriss S.

    CEO American Exceptionalism Institute, Radio Host, Author, Adj Professor, Economist

    The U.S. does not have a deficit. It is insolvent. There is no way to tax the problem away, because higher taxes retard the GDP to pay the taxes.

    The problem with monetizing the debt away is that people starve first.

  • Bill J.

    Bill

    Bill J.

    CEO at Productivity Step Change www.productivitystepchange.com

    But Chriss...Government spending as a percent of GDP is over 40%...up from 10% just before the first world war. The USD Index has fallen from 120 to 73 since 1987.

    So, the government's share of GDP has increased by 300% since around 1910 and the currency has been diluted by monetization by almost 40% in less than 25 years.

    When do we actually go bankrupt? ;-))

  • Chriss S.

    Chriss

    Chriss S.

    CEO American Exceptionalism Institute, Radio Host, Author, Adj Professor, Economist

    Actually, federal spending was 3% and state & local was 6% in FY 1910 http://www.usgovernmentspending.com/spending_brief.php

    For FY 2013, estimated federal spending is 23.3% and state & local spending 20.0% http://www.usgovernmentspending.com/fed_spending_2013USmn

    The U.S. cannot go bankrupt, because the country is sovereign. My belief is that there is a nasty bout of stagflation coming within the next 18 months. At that point the U.S. government will have to massively deregulate to exploit resources or suffer widespread violence until they massively deregulate and exploit resources.

    Intermediate the U.S. becomes solvent and long term we are on the verge of another U.S. Century.

  • Charles H. G.

    Charles H.

    Charles H. G.

    Commercial Lender Training and Strategist

    The Yankees are coming! The Yankees are coming!

    I've heard all of these terrible nightmares before about the coming plague of inflation, insolvency, rioting, food shortages, gold at $5000/oz. and cancellation of "Dancing With the Stars!"

    But it hasn't happened....

    P.S. Ain't another "US century" ahead either. Hope you enjoyed the last one.

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