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View Diary: How to be the Smartest Guy in the Room (154 comments)

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  •  Well, that makes sense (6+ / 0-) a way. But how would you get private banks to restrict lucrative lending? Duct tape?

    Denial is a drug.

    by Pluto on Sun Mar 03, 2013 at 08:39:27 PM PST

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    •  That's the part I don't get. (5+ / 0-)
      Recommended by:
      Pluto, Chi, Laconic Lib, Joieau, FarWestGirl

      Plus what stops any of them from saying "hmmm, our reserves are greater by $1 so now we can lend out $9 more."

      It must be that Invisible Middle Finger, er, Hand of the Marketplace that stops it, is all I can figure.

      We live in a nation where doctors destroy health; lawyers, justice; universities, knowledge; governments, freedom; the press, information; religion, morals; and our banks destroy the economy. -- Chris Hedges

      by Jim P on Sun Mar 03, 2013 at 08:54:11 PM PST

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      •  Either (5+ / 0-)
        Recommended by:
        Jim P, millwood, Chi, ferg, YucatanMan

        1) The Fed increases the rate it charges to lend money pays banks to park their money in the Reserve
        2) The Fed increases the reserve requirement
        3) People have enough money/things and so stop borrowing
        4) The government pays off all of its debt and starts saving the money for a rainy day.

        Obviously option 4 has not and probably will not happen in any of our lifetimes.

        •  At the state level, #4 happens. At the Federal (4+ / 0-)

          level, Clinton had balanced the budget and created a surplus.  When Bush cut taxes, he pulled the rug out from under a balanced budget and reducing the debt.  

          Otherwise, the total US debt held would be still be on its way down today.  Bush really stuck it to the country.

          "The law is meant to be my servant and not my master, still less my torturer and my murderer." -- James Baldwin. July 11, 1966.

          by YucatanMan on Mon Mar 04, 2013 at 10:31:00 AM PST

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          •  Don't Blame Bush (0+ / 0-)

            The Republicans wrote and passed the laws that destroyed the budget surplus and created a record deficit after inheriting a surplus.

            It's a minor point to say that some Dems voted for it, too. It was a Republican move, and Bush was simply in line with it and signed all the budget killers.

            Bush is gone; the party of the Deficit Doves is still with us, much to our horror.

            A Southerner in Yankeeland

            •  Don't blame Bush? I'm sorry, but I don't get it. (0+ / 0-)

              He gave speeches demanding that taxes be lowered.
              He campaigned on tax cuts.  
              He said "This money belongs to Americans, not the government!"
              His tax cut program was passed by Congress. Twice.

              How is this a "don't blame Bush" moment?  I don't follow you.

              Big tax cuts seemed quite reasonable in 1999 and 2000, when Bush was campaigning for his first term as President and talking up cuts to fend off challenges from fellow Republican Steve Forbes and, later, Democrat Al Gore. The U.S. was running budget surpluses and paying down the national debt.

              On the stump, Bush made an argument with obvious appeal: If the government was taking in more money than it needed, it should let Americans keep more of what they earned. And if tax cuts kept government from growing, so much the better. Hubbard recalls devising the 2001 tax cut in huddles with fellow advisers Lawrence B. Lindsey, who went on to head the National Economic Council, and Hoover Institution scholars John Cogan and John Taylor.

              So confident was Bush in his tax cut, which he signed that June, that he predicted that even after reducing rates the U.S. would be able to pay off nearly $1 trillion in debt over the coming four years. That August, at his ranch in Crawford, Tex., first-termer Bush called the shrinkage of the surplus "incredibly positive news" because it would create "a fiscal straitjacket for Congress."

              "The law is meant to be my servant and not my master, still less my torturer and my murderer." -- James Baldwin. July 11, 1966.

              by YucatanMan on Mon Mar 04, 2013 at 01:55:30 PM PST

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              •  What Bothered Me (0+ / 0-)

                What bothers me is people blaming Bush, and now that he's gone it seems that the person to blame is also gone.

                There's no doubt he was a bad guy, but the blame, I think, needs to be directed at the Republican Party, of which he was the temporary leader. He's gone, but they're not. He and they believed the same things. They proposed and passed a lot of Acts, Rules and Programs that attempted to destroy the country.

                And they're still here, still doing the same things they did in conjunction with him. Blaming "Bush", as guilty as he was, seems to let the Republicans off the hook and they were just as guilty and are still trying to destroy us.

                No doubt he was the worst president ever. But that congress was the worst congress ever, and many of them are still in power today. And W may not be spreading their poison, but Republican Senators and Representatives still are.

                Sorry I wasn't clearer in my post.

                A Southerner in Yankeeland

                •  I don't think anyone on this website lets (0+ / 0-)

                  republicans "off the hook."  It's plain what they are doing.  But there is no question that the tax cuts were part of the Bush program from day one.  Bush is still there to blame as well as all the republicans who go along with today's obstructionism.

                  "The law is meant to be my servant and not my master, still less my torturer and my murderer." -- James Baldwin. July 11, 1966.

                  by YucatanMan on Mon Mar 04, 2013 at 06:49:44 PM PST

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          •  In so many, many ways. ::sigh:: n/t (1+ / 0-)
            Recommended by:

            Information is abundant, wisdom is scarce. ~The Druid.
            ~Ideals aren't goals, they're navigation aids.~

            by FarWestGirl on Mon Mar 04, 2013 at 02:16:59 PM PST

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          •  That the problem, we're stuck in a vicious cycle- (1+ / 0-)
            Recommended by:

            Republicans take office and crash the economy, destroy the budget, and shred the social programs to the best of their ability.

            Democrats come in behind them, clean it up, and then get complacent and we start all over again, falling a little further behind each time.

    •  Crash the markets? (0+ / 0-)

      Threaten future profits with regulation or competition. Bust trusts.

      With a sensible public/private mix in an economy this would not be necessary, but our private sector is totally off the leash and demands to be serviced, and given that situation we need more active measures.

      This makes me wonder if the Master's of the Universe are addicted to the resetting of their playing field. It's like a new game of Monopoly every 5-10 years. Must be rather exciting and invigorating.

      Democracy - 1 person 1 vote. Free Markets - More dollars more power.

      by k9disc on Mon Mar 04, 2013 at 10:26:00 PM PST

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