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| Topic: US.. EU Nearing Recession | |
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Edited by
InvictusV
on
Thu 08/18/11 10:14 AM
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Good thing Obama and congress are on vacation.
Morgan Stanley slashed its global growth forecast for 2011 and 2012, saying the U.S. and the euro zone were "dangerously close to a recession", and criticized policymakers in Washington and Europe for not acting more decisively to contain the sovereign debt crisis. "Our revised forecasts show the US and the euro area hovering dangerously close to a recession — defined as two consecutive quarters of contraction — over the next 6-12 months," Joachim Fels, who co-heads Morgan Stanley's global economics team, said in a research note dated Wednesday. http://www.cnbc.com/id/44186209 Something I find interesting is that they don't refer to the problem as a "sovereign lack of revenue crisis". Maybe they skipped Kindergarten Economics 101.. |
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I wonder what would happen if all countries passed a balanced budget amendment.
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Edited by
InvictusV
on
Thu 08/18/11 10:44 AM
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I wonder what would happen if all countries passed a balanced budget amendment.
I don't think there are any painless options left. You can't cut the deficit with spending cuts alone or tax increases on 1% of 320 million people. You have to cut spending and raise taxes on everyone. They also have to eliminate NAFTA and start putting huge tariffs on Chinese goods imported here. Our trade deficit with China is criminal. Our allowing companies to move operations outside of the US and pay no taxes while affording the right to call themselves "American" companies is also criminal. If Exxon or GE want the protections provided by being an "American" company their overseas earnings should be taxed. |
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I wonder what would happen if all countries passed a balanced budget amendment.
I don't think there are any painless options left. You can't cut the deficit with spending cuts alone or tax increases on 1% of 320 million people. You have to cut spending and raise taxes on everyone. They also have to eliminate NAFTA and start putting huge tariffs on Chinese goods imported here. Our trade deficit with China is criminal. Our allowing companies to move operations outside of the US and pay no taxes while affording the right to call themselves "American" companies is also criminal. If Exxon or GE want the protections provided by being an "American" company their overseas earnings should be taxed. Perhaps. But the problem I see in the US is still one of spending oneself into oblivion. They should reduce spending to 2008 levels NOW. |
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I wonder what would happen if all countries passed a balanced budget amendment.
I don't think there are any painless options left. You can't cut the deficit with spending cuts alone or tax increases on 1% of 320 million people. You have to cut spending and raise taxes on everyone. They also have to eliminate NAFTA and start putting huge tariffs on Chinese goods imported here. Our trade deficit with China is criminal. Our allowing companies to move operations outside of the US and pay no taxes while affording the right to call themselves "American" companies is also criminal. If Exxon or GE want the protections provided by being an "American" company their overseas earnings should be taxed. Perhaps. But the problem I see in the US is still one of spending oneself into oblivion. They should reduce spending to 2008 levels NOW. I agree. The problem is long term. Even if we erase the deficit we still have a debt that is over 100% of GDP. That means we have to balance the budget and create a massive surplus for the next 20 years just to pay down the outstanding debts. Balanced budget is good for the short term, but we need a plan for long term debt reduction as well. |
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I wonder what would happen if all countries passed a balanced budget amendment.
I don't think there are any painless options left. You can't cut the deficit with spending cuts alone or tax increases on 1% of 320 million people. You have to cut spending and raise taxes on everyone. They also have to eliminate NAFTA and start putting huge tariffs on Chinese goods imported here. Our trade deficit with China is criminal. Our allowing companies to move operations outside of the US and pay no taxes while affording the right to call themselves "American" companies is also criminal. If Exxon or GE want the protections provided by being an "American" company their overseas earnings should be taxed. Perhaps. But the problem I see in the US is still one of spending oneself into oblivion. They should reduce spending to 2008 levels NOW. I agree. The problem is long term. Even if we erase the deficit we still have a debt that is over 100% of GDP. That means we have to balance the budget and create a massive surplus for the next 20 years just to pay down the outstanding debts. Balanced budget is good for the short term, but we need a plan for long term debt reduction as well. True. A balanced budget and a 5% debt repayment per year would get us there. |
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