Comments on: Can’t we just borrow money from the Chinese? – Grimgold

By: grimgold

grimgold — Thu, 24 Jan 2008 00:22:57 +0000

Joe, I agree about the huge military budget. Perhaps it’s time to loudly proclaim we no longer want to be the world’s policeman. We can’t afford it.
It’s obvious to us conservatives that we need to begin living within our means. I say part of the way to do this is to force the fed to go to a non-fiat dollar, one that cannot be inflated, and to demand balanced budgets.
The top 1% pay 35% of the taxes (do I have that right?). I’d rather see the rich get that money, then re-invest it or give it away (as per Bill Gates, for example). It’s the rich that are most interested in money, business, and perhaps by default job creation.
Also you’ll never be able to punish the rich as those who are jealous of them want to. It makes liberal hearts all warm and is good bullshit during campaign speeches, but will never happen because the rich push for the tax breaks that have caused the thousands of pages of tax code, are more politically aware, and if all else fails are quite capable of taking their money and moving out of the USA.
I agree with you that we can no longer go down the road we’ve been traveling.
Please read the FairTax book. It talks about the “underground”/black market/cash only economy, and answers your query very well.
My answer to you is too long already. I’d be glad to discuss this further if you’d like. Grimmy

By: Joseph52

Joseph52 — Wed, 23 Jan 2008 20:44:46 +0000

Grim, I am sincerely convinced that the national sales tax proposal, if implemented, would not yield anywhere near the revenue needed to meet the federal government’s financial obligations. I am further convinced that it would simply enormously expand the “underground”/black market/cash only economy, making tax evasion a national hobby.

Our grotesquely outsized military expenditures (which in reality are close to $1.1 trillion per year when the defense-related activities of all government departments are factored in) are putting an enormous strain on our resources. Our defense expenditures outnumber those of the rest of the world combined.

Further, our refusal to pay for what we are asking for in government services is tragically misguided. I know it’s heresy among conservatives, but taxes on the top 1% are too low and the Bush tax cuts have generally been a disaster for the economy. China already holds $1,530,000,000,000 in its central banking system because we have been borrowing from China so recklessly. How much longer can we continue this disastrous course?

By: grimgold

grimgold — Wed, 23 Jan 2008 04:34:36 +0000

RS, I understand and share your fear. I wish you dems would consider the fairtax. It makes the cost of doing business much cheaper because companies don’t have to constantly fight the IRS, and with the fairtax the fed govt is directly tied to the economy. If we do well they do well. Suddenly they have incentive, therefore, to keep the economy on an even keel.
Also getting rid of fiat money is about 75 years overdue. FDR intended that as a very temporary measure. We need to go to uninflatible dollars, as the govt has proved beyond reasonable doubt it will not deal honestly with us. A gold standard may not be the answer, but something with the same idea in mind is needed to keep the fed honest.
We are in a position where we are being forced to compete globally and it’s high time we started doing it. Please, please read the fairtax book. Grim

By: RS Janes

RS Janes — Wed, 23 Jan 2008 00:23:06 +0000

Grim, your scenario isn’t that far-fecthed — some economists think China will hand us more money just because we’re such a big consumer market for their cheap crap. But our consumer days are coming to a close — people with massive mortgages and unpaid credit card debt won’t be able to afford the latest electronic gizmos and lead-painted toys from Asia.

With the recent downturn in the international markets, nobody wants the nearly-worthless US dollar, or our T-Bills, these days. The Big Money Boys are investing in Euros or gold or gems.

We’re in for a long, nasty ride economically; I hope we come out of it as well as our parents and grandparents came out of the Great Depression — and without a world war.