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Rousseau SC

Rousseau SC
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  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    I think see what you mean, but I am not sure. You seem to be talking about private money held by those who hold the public debt.

    However, your statement was that the govt does not borrow money. It does, as your last post admits. The govt has debt as your post admits.

    The fact that most of the debt is owed to multi-national financial institutions, to foreign entitites to foreign and domestic investors and to the domestic
    citizenry does not mean the national debt is an asset of the US govt. It is a liability, regardless of the owner of the debt.

    Yes, money is an obligation of the sovereign. Whether the obligation is paid or "cancelled" is irrelevant, unless you include the option of default within the meaning of "cancel".

    However, excluding default, the sovereign can only "cancel" so much of the money as it can "cancel", without destroying its "full faith and credit". That is why we have taxation, which allows the govt to "cancel" more of its obligations than not having taxation. If you believe we can print away our obligations, then look at the consequences.
    Dec 2, 2012. 11:29 AM | Likes Like |Link to Comment
  • Recession Risk: Is The U.S. Economic Expansion Running Out Of Time? [View article]
    If the wage defaltion, price inflation, transfer of wealth from the middle class to the monied class and from citizens to big businesses, and the increase of poverty and dependency is economic epxansion, then we sure as hell need economic contraction.
    Dec 2, 2012. 10:55 AM | 5 Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    Mr. Kramer,

    "The national debt is money that people have agreed not to spend for awhile"

    No disrespect, but are you serious? I have heard of no such agreement.

    Where is all this money we have agreed not to spend? Who is holding onto that money?

    I could use my share now to pay some bills and buy a home. I figure my family's share would be over $ 270k and rapidly growing (without counting unfunded liabilities, so actually our hidden cash account must exceed $ 1 mil,, which is less than what I have paid in taxes in my life, but far more than I have now.) I would like to have my unspent money.
    Dec 2, 2012. 10:47 AM | Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    If you are familiar with Shakespeare's work, you would know that it was the villain, not the hero, who utterred those words about lawyers.
    I know many scores of lawyers, and most of them are more honorable and more trustworthy than the average person. As a group, by comparison, they make tinanciers and politicians look quite dispicable.
    Dec 2, 2012. 10:29 AM | Likes Like |Link to Comment
  • Is QE3 Working? [View article]
    The first step we must take to make the economy work well, to make the govt work better, and to put people back to work is make the country and its govt something worth believing in. People need to have conviction that the team is worth playing for, that personal scrifice is not made in vain, or worse yet, that it will only lead to unjust results. Neither party, nor the public, have any conviction that they should sacrifice anything for the public good largely because they see everyone as out for themselves only. I won't give a JFK, "Ask not" speech, but the evidence is constantly barraging us and the conclusion seems to me to be obvious. Have nots resent haves. The more affluent have a "47%" mentality. Those living on the govt tit believe that any effort toward upward mobility will be wasted. Public emplyees believe they deserve to make more money and receive better benefits of less work than those doing comparable work in the private sector. Everyone seems to be the center of their personal universe. Uncle Sam has created a caste sysem with its entitlement programs and its payroll/income tax debacle. That is why workers are sufferring from wage deflation and price inflation and small business, and especially the self-employed are being systematically crushed.
    Dec 2, 2012. 10:18 AM | 3 Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    "The government does not have revenues, and it does not borrow...?"

    What is the national debt if it is not borrowed money? Why does Uncle Sam pay interest on treasuries if they have not borrowed?
    Dec 1, 2012. 10:31 AM | 1 Like Like |Link to Comment
  • Duke Energy (DUK) CEO Jim Rogers says he intends to retire by the end of 2013, consistent with the expiration of his contract. A special board committee will oversee the recommendation of a successor, as stipulated in DUK's just-announced settlement with North Carolina regulators regarding the management succession following the merger with Progress Energy. [View news story]
    I don't disagree. The market seems to act irrationally. Whether that is caused by govt and/or big mony manipulation or by big money trading on insider information, I can't tell..
    Nov 30, 2012. 08:57 AM | Likes Like |Link to Comment
  • Duke Energy (DUK) CEO Jim Rogers says he intends to retire by the end of 2013, consistent with the expiration of his contract. A special board committee will oversee the recommendation of a successor, as stipulated in DUK's just-announced settlement with North Carolina regulators regarding the management succession following the merger with Progress Energy. [View news story]
    Is this why the stock jumped today?
    Nov 29, 2012. 06:28 PM | 1 Like Like |Link to Comment
  • Goldman Sachs details its 1575 price target on the S&P 500 in 2013: Expecting better growth than most, the firm likes cyclical over defensive sectors, and tech over staples, telecom, and health care. A "grand bargain" in D.C. along the lines of Simpson-Bowles "would spark a PE multiple expansion and a higher target." [View news story]
    If the "grand bargain" doesn't include cuts in payroll and benefits for govt employees, we will find out if we have citizens or subjects. The middle class working in the private sector gets no pension plans, with very few exceptions. Get very few benefits and very few holidays and get paid less for comparable work under more demanding conditions (with the exception of local law enforcement officers who are vastly underpaid and undervalued).
    Nov 29, 2012. 03:16 PM | Likes Like |Link to Comment
  • 3 Key Metrics That Show Why We Can't Avoid Recession [View article]
    The only real constraint on govt spending is the potential unwillingness or inability of the population being taxed to pay increased taxes. As long as the perception is that the well is not empty, govt can borrow.
    Nov 28, 2012. 09:03 AM | 1 Like Like |Link to Comment
  • The Fiscal Cliff Is The Best Fiscal Medicine [View article]
    Yes there are a number of things that were not envisioned. However, most of those you listed have nothing to do with the issue. I question whether we have, in any way attributable to the income tax, created "a tremendous growth in our standard of living" when we have progressed from a nation in which the middle class could support large families with only one working parent to a nation in which both parents work, struggle to be able to afford to support their smaller families and end up with tax liabilities approximating the income of one of the spouses?
    Does anyone have the leisure time our forefathers had? Where is this "standard of living"? I don't think 4 vehicles and 5 televisions evidence a higher standard of living. Perhaps is evidences a greater velocity of money, but does that really speak to the issue of quality of life?
    Nov 28, 2012. 08:53 AM | Likes Like |Link to Comment
  • Flash crash in gold? The yellow metal dives $20 in the space of a few trades, now -1.6% to $1,716/oz. [View news story]
    Since when has a few minutes mattered? This does not inform us of what the big money is really doing.
    Nov 28, 2012. 08:41 AM | Likes Like |Link to Comment
  • The Fiscal Cliff Is The Best Fiscal Medicine [View article]
    In 1913, the nation did not foresee the cultural changes that would follow.
    When the income tax was authorized, they did not expect it to result in a govt addicted to spending irresponsibly. We need to either revoke the 16th amendment or amend it to restrict taxation or we will not be able to solve the problem. The federal debt is now more than 5,000 times what it was after 122 years without a federal income tax. The income tax makes irresponsible federal spending possible, rather than pays for it. It was an experiment which we must now admit has not worked.
    Nov 27, 2012. 10:23 AM | 4 Likes Like |Link to Comment
  • Is QE3 Working? [View article]
    And since they were selling the loans, they pressured appraisers to do fraudulent appraisals. As a real estate attorney, I have met numerous appraisers who had to deal with this problem. I have even met some who were cut off by TBTF banks for refusing to appraise fraudulently to come up with over-stated values. I have also seen underwriting docomentation evidencing an intention of TBTF banks to misrepresent loans to FHA and Freddie Mac.
    As to the dishonesty of those you would call greedy Americans who bought houses they could not afford, I must say that most of it was ignorance as to what they could afford. Most people are not efficient at analyzing the realism of their budgets. Many actually believe that if they qualify for a loan, the experts must think they can afford it. Sure, that is not bright; but it is not crooked either.
    Nov 25, 2012. 04:47 PM | 1 Like Like |Link to Comment
  • Is QE3 Working? [View article]
    Costa - You are not serious are you? You think banks could not make any money honestly? After all, they sold the loans which were not guaranteed by FHA or other govt entities to the GSEs; cashing in at taxpayer expense. They did not hold them.
    Nov 25, 2012. 04:32 PM | 1 Like Like |Link to Comment
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