JohnAl

Turning Japanese: The Audacity of Reality (Part 3 of 3)

Another excellent article Mr. Quinn.

Regarding the politicians wanting to "help". It seems the Dems think the solution is to spend, and charge it. The GOP solution is to cut taxes, and charge it.

Being a taxpayer I slightly prefer the latter to the former, but better still is a third solution. Cut taxes AND spending.

Imagine what a BIG tax cut would do for everybody's psychology, IF spending were cut an equal amount so people knew that the tax cut was REAL and not simply based on a scheme to put off paying for it.

Congress vs. Automakers: Are Both Sides Fiscally Irresponsible?

"For sure, a lot of this rescuing is necessary, and the deficit will be very high for the next couple years."

Each "rescue" of one of these "too big to fail" companies just adds to the fiscal problems. We have to stop somewhere. We have to stop talking about how we can't continue to bailout and actually stop doing it.

Take a Stand Against Government Spending

Excellent synopsis of the insanity, Mr. Quinn.

So now it appears that after Paulson and Bernanke have given out goodies to every Wimpy with his hand out, the new president is going to attempt to do 'em one better with his new make work program. So we'll get new roads and bridges. I have just one question. Who pays?

It won't come from taxes, so it's either going to come from borrowing or spending. Borrowing is going to get increasingly difficult, since investors - both private and foreign governments - just took a major hit and are increasingly less trusting that they'll get paid back with anything resembling the dollars they'd invest. So I guess that leaves printing.

So we'll have dollars that buy us less, and we'll have failed institutions propped up, and we'll have new roads and bridges. But we won't be any more productive than we are now because all of that capital will not have been used in productive pursuits.