Comments on: Why the US debt crisis is a good thing http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/ Wed, 16 Jul 2014 00:47:01 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: paintcan http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1049 Thu, 04 Aug 2011 14:51:48 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1049 The Author should recognize the pattern of cut, retrench, attempt to restructure and final collapse that brought about the end of the Soviet Union after its disastrous term in Afghanistan.

The fall of the USSR brought about the break up of its territory, the collapse of it creaking social support system and opened the door to years of chaos and economic power grabbing by insiders in the emerging political order.

The trick for the aspiring oligarchs here will be finding the insiders that somehow manage to keep their heads and influence in what will no doubt be a very “fast paced and exciting environment” for the most treacherous and greedy bastards one could possibly imagine.

They will simply never be able to set foot outside their armored limousines and securely gated compounds without armed escorts.

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By: DemoKratia http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1046 Sun, 31 Jul 2011 07:50:10 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1046 Finally someone encouraging debate and new ideas. Hopefully we can break out of a stagnant mould of do what has been done before but with more spin. I suggest we implement a true monetary control on cyclical movements called the FSFP (Flow Siphon Flat Payment) it’s simple, easy to manage and stops the boom and bust cycle. And more importantly it works outside politics so we won’t get caught in the mess caused by professional elites using our future as a bargaining chip. See more http://demokratia.jesaurai.net/2011/07/3 1/the-us-government-has-become-the-shove l-of-the-wealthy-as-they-undermine-ameri can-democracy/

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By: lusoris http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1039 Wed, 27 Jul 2011 22:28:29 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1039 Whalen thinks the debate “seems” pathetic. Reality Check: the “debate” as it is being played out in the mainstream media IS pathetic. The Two-Headed Party system is totally in the pocket of a Global Corporate-Banking Elite: the CEO’s of the biggest multinational corporations, banks and financial institutions. They have kept the insolvent Federal Reserve-driven financial Ponzi scheme from collapsing by making $ trillions in secret, private loans to the biggest banks, essentially laundering bad debt by washing it by buying Treasury bonds, while letting smaller banks and financial institutions default, only to gobble them up for pennies on the dollar. This isn’t being reported in this pathetic debate.
Whalen says: “The experiment in corporate statism begun by FDR in the 1930s and extended through and after WWII has brought us to the brink of insolvency.” In truth, FDR’s “statism” economy–with its regulatory controls–would extrapolate into a TOTAL national debt of about $500 billion today, instead of our unsustainable $14.5 TRILLION.
I agree with the author about the necessity and absolute morality of recalling and reducing our colonialist-imperialist military machine. The costs of weapons systems, foreign bases, deploying and supplying troops afar, and re-building destroyed foreign infrastructure and economies are rationalized by the mantra of “The War on Terror.” We have spent $ trillions to fight against box-cutters, while losing our Constitutional freedoms under the Patriot Act.
Whalen must be deeply cynical to want “the Fed to monetize this borrowing on the backs of US consumers and businesses via steady, unrelenting inflation.” We need to get the Federal Reserve, a PRIVATELY OWNED bank which serves ONLY the interests of the Global Corporate-Banking Elite, out of our monetarist system. The Fed got what it wanted with the deregulation of the banking and finance industries: rampant bad DEBT sold by them to bigger fools–the smaller banks and ultimately the U.S. taxpayer. They encouraged the derivative insanity which has falsely driven the economy and the money supply, while laundering their own bad debts through Treasury securities. “Unrelenting inflation” will NOT hurt the Fed, but WILL hurt the poor, who feel the effects of inflation the greatest.
Whalen needs to be SPECIFIC about who needs “to say no to ever more debt and to instead embrace debt reduction and restructuring of insolvent banks and markets to restore economic solidity;” IT’S THE ULTRA RICH Global Corporate-Banking Elite! They are enjoying a “gamed system” and WILL NOT ALLOW IT TO END until America is in a shambles!
Do the Global Corporate-Banking Elites “have the courage to make the tough choices” without cutting domestic spending for services to the poor or generating more “revenue” via higher taxes and fees upon the poor and middle class?
I think we know the answer to that!

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By: Muleshoe http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1038 Wed, 27 Jul 2011 22:23:31 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1038 @Gordon 2352. A tax is fair when everyone pays the same percent of thier income, not to sock it to the people that make more. Sure they will pay more, because they made more. We are turning into a country that either gives a free ride or a rebate (redistribution) to 50% of the country but has the top 5% paying over 50% of the taxes. I am amazed at all the people that have no idea how to make money but think it great to just take it all away from anyone who makes more than they think is what they could spend in a year. Bottom line, it far for someone who make $25K or $25M to pay the same percentage. Then everyone has the same incentive to get off their ass.

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By: MtCDoc1 http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1036 Wed, 27 Jul 2011 21:46:00 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1036 @Gordon2352: I agree. The argument goes that the wealthy are already assigned terribly high tax rates. Unfortunately, the richer one is, the higher priced the lawyers and accountants are that they can afford to ensure that their assigned tax rate becomes a challenge to see how much can be knocked off the final bill. Like GE, they end up paying a pittance, if anything, compared to their fair share. Add that to the discussion at hand, in addition to the fact – and I use the word “fact” purposefully – that this whole argument is a charade to insulate the highest income brackets from any inconveniences. Perish the thought that the Koch brothers may have to miss a day that the sand at their beach homes is being groomed. Yes, will that they would suffer a “little pain”!

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By: Slammy http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1035 Wed, 27 Jul 2011 21:22:17 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1035 I agree with his comments on inflation being the worst of two evils but my comment is slightly off topic.
When most people run out of money and credit, they begin selling assets. What about the United States selling some of our protectorate islands we acquired in World War 2? Saipan should be worth at least a trillion, Guadalcanal maybe 5 trillion (probably higher), suggested starting price for Guam should be 10 trillion. Granted that selling these to China, India or whoever else would would weaken the United States strategic position. However, cutting our military spending to the bone by scrapping our carriers, cutting troops and troop readiness and spending on technology might make us weaker than pawning some islands that few Americans visit and that can be retaken or bombed into uselessness if needed. Just a thought.

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By: Gordon2352 http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1034 Wed, 27 Jul 2011 21:14:52 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1034 Since the wealthy class accumulated all of the economic gain in the decades since WWII, how about if they suffer a “little pain” for a change, like paying their fair share of taxes. Now, THAT would be a good thing to result from this “post-stimulus adjustment to economic reality.”

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By: KyuuAL http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1029 Wed, 27 Jul 2011 20:00:30 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1029 “It’s time to start paying attention again.” The best quote of the article.

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By: MtCDoc1 http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1028 Wed, 27 Jul 2011 19:59:24 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1028 “Bring the US troops in Europe home, I say, right now.” And, do what with them? Add them to the already unbearable unemployment levels? That’s the problem with extremists such as you, Mr. Whalen. Your impatience is a path to disaster. I agree that it’s time to repatriate many of our troops from around the world; but, everything in moderation. These screaming mobs hollering “Shut it down! Shut it down!” are painfully unaware of the consequences of their demands. I agree with much of your premise. Except, without moderation, you are asking for social suicide. We’re already in the kitchen, Mr. Whalen, and the stove’s on fire.

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By: BowMtnSpirit http://blogs.reuters.com/christopher-whalen/2011/07/27/why-the-us-debt-crisis-is-a-good-thing/comment-page-1/#comment-1027 Wed, 27 Jul 2011 19:33:06 +0000 http://blogs.reuters.com/christopher-whalen/?p=557#comment-1027 @chisletoe: Exactly. And you didn’t even touch on peak oil. In point of fact, the economic perturbations caused by a continuously plummeting EROI are behind a lot of the economic ripples now rocking our boat. Not directly, but through the corporate giants who know its coming and are positioning themselves accordingly. The entire present system is designed to create enough fiat money to permit these plutocrats to siphon off the essential commodities before the hammer drops.

@ NukerDoggie: Knowing what will happen, and knowing that the more drawn out the process, the more calamitous the inevitable break will be, is not being anarchic. If it is, count me as an anarchist. This system is destined for the dustbin, and all of the drama in D.C. has only the potential of delaying the inevitable. Better to take our medicine right now, and stop the hemorrhage of commodities into the pockets of the elites. This system cannot be sustained, it cannot be reformed, it cannot be repaired, and it must not continue. It is time.

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