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View Diary: The White House Rejects Solutions to the Mess it Made. We Will Pay for it With Austerity (220 comments)

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  •  should read have not (0+ / 0-)

    had a balanced budget.

    -You want to change the system, run for office.

    by Deep Texan on Wed Jan 16, 2013 at 10:24:07 AM PST

    [ Parent ]

    •  Why destroy private sector wealth??? (2+ / 0-)
      Recommended by:
      priceman, gooderservice

      That's what you get when you combine a trade deficit (which we have had for ages) with government budgets either balanced or in surplus. We need deficit spending to increase wealth in the private sector.

      Just another faggity fag socialist fuckstick homosinner!

      by Ian S on Wed Jan 16, 2013 at 12:02:16 PM PST

      [ Parent ]

      •  or we need the wealthy to pay their share (0+ / 0-)

        going into debt and/or devaluing the dollar isn't the answer.

        i do agree that massive deficit spending is needed.  however, that's only because americans refuse to pay for their toys.

        -You want to change the system, run for office.

        by Deep Texan on Wed Jan 16, 2013 at 12:35:51 PM PST

        [ Parent ]

        •  Printing money doesn't devalue the dollar (1+ / 0-)
          Recommended by:
          priceman

          No, deep deficit spending is needed because the US tax system is so powerful, taxes so high, and the dollar so highly valued that it is saved all over the world.

          Think of a mythical medieval King, who mints coins with his face on them. They are the only money used by the people. The King taxes the people for the coins - not because he needs the coins, but because he needs to make these coins in demand, desirable. So he can get roast beef etc from the peasants - and just give them his pretty coins.

          Obviously there won't be any coins if the King doesn't mint them and spend them. All the coins came from the King's deficit spending.  These coins are a debt of the King. Since he and his taxmen are so  powerful, he can spend a lot and NOT devalue them. People will save them up for a rainy day, to not fall into the hands of the taxmen.

          And that is how it works nowadays too, how it always worked. There is just a lot of extra BS involved to confuse people, to disguise how simple it all is.

          Deficits - minting new coins - are indefinitely sustainable, forever. Surpluses - or in reality, balanced budgets even - are not - and are very dangerous to economies. Sure, tax the wealthy, lower deficits that way, and do the favor to the rich of taking the money they have an insane obsession with away from them. But the main thing is to always spend enough.

          The problem is that modern economies tend to be run utterly insanely by medieval Kingdom, Henry VIII standards. They are ruled by psychotic theories that make the King mint so few coins that he strangles his own economy. That's where we are now.

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