Comments on: Default, debt ceilings and democracy http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/ Wed, 16 Jul 2014 00:47:01 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: LEEDAP http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-971 Wed, 13 Jul 2011 07:17:13 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-971 I’d like to know the education and financial savvy of those advocating for the default. I can’t imaging any of them knowing what they’re talking about. But then here comes Whalen.

Please read @brothersean’s comments for cues on rational thinking. They should be helpful. @Acetracy comments are good, but the rates on capital gains could be actually lowered if loopholes were eliminated. @DanVR has some seriously good points and there is also the advantage of seigniorage in the benefit of using USD for the international trade currency.

It’s befuddles me that some of the commenters have better ideas than Mr. Whalen’s attempt to correlate the potential benefit of failing to raise the debt limit with congresses’ failure to retain the conforming loan expansion. The irony is that Whalen is advocating for homebuyers ability to avoid taxes on borrowing more. I agree with him on that latter point, but not the former. As a property owner in California, I have a strong desire to keep my expensive home expensive. But its a loophole that should be closed the next time home prices start heating up and we can afford to take the hit. That’s rational, isn’t it?

]]>
By: Realist99 http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-348 Wed, 20 Apr 2011 02:41:27 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-348 Acetracy: Make that three wars, the latest one your buddy Obama’s idea.

]]>
By: Gnilhert http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-347 Tue, 19 Apr 2011 20:47:16 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-347 Washington is broken and it does not appear that there is the leadership and knowledge to dig the United States out of the numerous messes it is in. The states and government are in serious trouble and with politics “as usual”, the spin seems to be more important than definable actions and solutions. Talk is cheap, but actions speak louder. I am worried for this country, our children and those out of work. What are we leaving to future generations to deal with? God help our country and leaders. Amen!

]]>
By: blankfiend http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-346 Tue, 19 Apr 2011 19:43:04 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-346 Interesting perspective with a snowball’s chance in hell of ever being adopted.

You hint at the truth with your line from Jefferson:

“No nation can call itself a democracy if it is not willing to reject the demands of convenience and use an occasional revolution, to paraphrase Thomas Jefferson, to cleanse the nation’s financial and political life…”

We are ALL ABOUT convenience and the status quo. We had our chance at “revolutionary change” in the midst of the financial crisis, and we actively shunned the opportunity. Now with the Fed contemplating writing put options on US Treasuries, the temptation to “ponzificate” for even longer will be Satanically efficacious.

]]>
By: dburstin http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-344 Tue, 19 Apr 2011 16:10:03 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-344 Just charge as much taxes as any other developed country in the world, and you will balance the budget in a few years:

http://en.wikipedia.org/wiki/Tax_Freedom _Day#Tax_Freedom_Day_around_the_world

]]>
By: r.felder http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-342 Tue, 19 Apr 2011 12:38:32 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-342 I am soooooooo sicken by the fact that our government continues to do NOTHING to help the economic mess we find ourselves in. The fighting continues, nothing gets accomplished and the can gets kicked down the road over and over and over again. Why do we stand for this?

]]>
By: jason.lin http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-343 Tue, 19 Apr 2011 10:49:39 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-343 A few questions for you, Mr Walen.

1. The dollar is valuable BECAUSE of its credit and stability. If the US government shows such hubris and subject its investors to the “caprice” of its own Congress”, do you expect the credit of the dollar to hold up?

2. “Voting against raising the debt ceiling is voting against bailouts for Goldman Sachs, JPMorgan and other large Wall Street banks. ” I would like to take you up on that. On what basis do you state this?

3. What “political principles” do you hope to expound on by a swift default? Over-optimism? Argentina had a “swift default” and it was pretty damaging for the record.

]]>
By: brothersean http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-341 Mon, 18 Apr 2011 23:03:21 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-341 I liked reading the comments from Acetracy and Woltmann. They were factual, and most of the important information today is emotionally criticized instead of factually checked.

]]>
By: brothersean http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-340 Mon, 18 Apr 2011 22:52:59 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-340 I don’t understand the lack of reasoning. It’s like everyone is making decisions based on their emotions instead of using old fashion logical deduction. We can give wall street and the big banks 650 billion,(the reason was an emotional scare tactic) but when it comes down to sustaining the services of education, we forget how to add. Instead of chopping off huge chunks on a service that has taken years to build why not take the logical approach and fix what doesn’t work while keeping the service intact to use what is working. I don’t see how becoming dumber can solve our problems. In the real world of problem solving, emotions don’t work. So take a deep breath, let it out slowly, then look over the entire problem before deciding the best solution.

]]>
By: Acetracy http://blogs.reuters.com/christopher-whalen/2011/04/18/default-debt-ceilings-and-democracy/comment-page-1/#comment-339 Mon, 18 Apr 2011 22:18:14 +0000 http://blogs.reuters.com/christopher-whalen/?p=322#comment-339 US deficits are a result of bad tax policy (income generation) and expenditure (defense, 2 wars, the whole pentagon industrial complex). There are two issues that Republicans are adamant on and most Democrats cave into as well: more money for defense, more tax cuts for special interests and the “elite 1%”.

Simply put, the US right now cannot afford such low rates on capital gains, dividends, and other 1099 income. These rates should go up by $$ bracket as in the pre-Reagan tax days. this low fixed 15% tax rate is bankrupting the country. However, those who are bank rolling senate election campaigns know that they can stop any bill that may raise rates with the help of the Republicans.

On the expenditure side, the US Defense department’s oversized budget, plus the needless 2 wars, etc. are a huge drain on resources and do not benefit the economy long term. The best defense for this country would be internal investment (infrastructure, research, training/education) but instead $billions are spent way out of proportion to what is needed. REmember, if you add up the top 10 countries defense expenditure it would about equal the US Defense budget. That’s huge and is not sustainable.

Additionally, the US needs to see its 1% Elite pony up their fair share. How? Pass a 2% net worth (intangibles) tax on persons, corporations, trusts, foundations with assets over $10 million. That tax alone could pay off US debt in less that ten years.

]]>