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Post by nautonnier on Feb 12, 2018 14:41:50 GMT
Currently we are and will continue running budget deficits of about 5% of GDP. Never before have we seen these types of deficits with near “full employment”. Which takes Keynesian economics to a new level. I’ve never been fond of Keynesian economics. It simply is counterintuitive to what I have been taught about fiscal responsibility. But one could make a valid argument for a Keynesian approach during an economic crisis like a deep recession or depression. FDR’s WPA projects put people back to work and paid off dividends for years and years. But why in the hell are we still spending like this if the economy is doing so well? Are we: A.) Simply led by buffoons who can’t do math? B.) Pulling out all the stops to try and create inflation? C.) Addicted to spending D.) All of the above It defies logic. Certainly not the trademark of a Conservative government "But why in the hell are we still spending like this if the economy is doing so well?" I believe that this premise is incorrect. The economy has just staggered out of bed after a very close approach to being terminally poisoned. The US economy was within a year or so of total collapse. This was brought on by all the 'global warming' hooplah that made energy prices 'necessarily skyrocket' with government money being laundered through friends of the administration, and by regulations being imposed at a mind boggling rate by a micromanaging federal government which should have been told to remove itself. Manufacturing was leaving the country at a rate only challenged by Australia - all the GDP was fake taking in each other's washing service industry not foreign earnings even those companies that were 'big American' did much of their manufacturing abroad such as Apple and Boeing. SO now over a year regulations have been removed, the punitive rates of taxation on business has been cut, money and jobs have reversed the flow and are now coming back into the country. The stock market can see this and in the main are welcoming the news. However, the country cannot instantaneously turn around and start making a profit. The factories that are opening have yet to sell their goods abroad in a way that is visible on the balance sheets, small businesses are starting up but are not operating yet at full speed. Effectively, the green lights are on and the economy is accelerating with spinning wheels and in a year will be really generating money. It is ONLY generating goods to sell abroad that will pay off the debt that has been run up. Sitting on businesses and holding high tax rates and reducing all government spending may look like 'fiscal responsibility' but will not pay off the debt. That's what was done to Greece. Alongside the increase in productivity should be a reduction in 'make work' jobs and excessive overspending on $700 toilet seats etc. So I suspect that there will be audits of all departments. The federal government has had a hiring freeze for the last year - expect to see more of that. If the Democrats had not spent their time on Russia Russia Russia Russia Russia Russia and throwing grit in the gears of the congress and senate then I believe that there would have been more reductions in federal spending. Possibly entire departments being removed (in line with The Constitution). So - watch what happens in the next few months the important number is the balance of trade. It was reported that the US is selling oil to the Emirates for example. Just that self reliance will reduce outgoing money. The aim should be to reduce imports buy US and sell to the world. You can't do that sitting in sackcloth and ashes while you raise more tax on industry from a rapidly diminishing tax base. Everyone can do their part - check what you are buying does it come from the US or abroad?
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Post by Ratty on Feb 12, 2018 23:26:44 GMT
A. F. Branco:
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Post by nautonnier on Feb 13, 2018 20:33:00 GMT
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Post by glennkoks on Feb 14, 2018 0:30:22 GMT
Currently we are and will continue running budget deficits of about 5% of GDP. Never before have we seen these types of deficits with near “full employment”. Which takes Keynesian economics to a new level. I’ve never been fond of Keynesian economics. It simply is counterintuitive to what I have been taught about fiscal responsibility. But one could make a valid argument for a Keynesian approach during an economic crisis like a deep recession or depression. FDR’s WPA projects put people back to work and paid off dividends for years and years. But why in the hell are we still spending like this if the economy is doing so well? Are we: A.) Simply led by buffoons who can’t do math? B.) Pulling out all the stops to try and create inflation? C.) Addicted to spending D.) All of the above It defies logic. Certainly not the trademark of a Conservative government "But why in the hell are we still spending like this if the economy is doing so well?" I believe that this premise is incorrect. The economy has just staggered out of bed after a very close approach to being terminally poisoned. The US economy was within a year or so of total collapse. This was brought on by all the 'global warming' hooplah that made energy prices 'necessarily skyrocket' with government money being laundered through friends of the administration, and by regulations being imposed at a mind boggling rate by a micromanaging federal government which should have been told to remove itself. Manufacturing was leaving the country at a rate only challenged by Australia - all the GDP was fake taking in each other's washing service industry not foreign earnings even those companies that were 'big American' did much of their manufacturing abroad such as Apple and Boeing. SO now over a year regulations have been removed, the punitive rates of taxation on business has been cut, money and jobs have reversed the flow and are now coming back into the country. The stock market can see this and in the main are welcoming the news. However, the country cannot instantaneously turn around and start making a profit. The factories that are opening have yet to sell their goods abroad in a way that is visible on the balance sheets, small businesses are starting up but are not operating yet at full speed. Effectively, the green lights are on and the economy is accelerating with spinning wheels and in a year will be really generating money. It is ONLY generating goods to sell abroad that will pay off the debt that has been run up. Sitting on businesses and holding high tax rates and reducing all government spending may look like 'fiscal responsibility' but will not pay off the debt. That's what was done to Greece. Alongside the increase in productivity should be a reduction in 'make work' jobs and excessive overspending on $700 toilet seats etc. So I suspect that there will be audits of all departments. The federal government has had a hiring freeze for the last year - expect to see more of that. If the Democrats had not spent their time on Russia Russia Russia Russia Russia Russia and throwing grit in the gears of the congress and senate then I believe that there would have been more reductions in federal spending. Possibly entire departments being removed (in line with The Constitution). So - watch what happens in the next few months the important number is the balance of trade. It was reported that the US is selling oil to the Emirates for example. Just that self reliance will reduce outgoing money. The aim should be to reduce imports buy US and sell to the world. You can't do that sitting in sackcloth and ashes while you raise more tax on industry from a rapidly diminishing tax base. Everyone can do their part - check what you are buying does it come from the US or abroad? I am quite certain that the premise is correct. We have a government that is addicted to spending and it does not look like the Trump Administration is going to do anything but increase both the deficit and the debt. Unless there is a drastic change in our spending habits we will be 30 trillion in debt in a few short years. In addition our energy prices and most other commodities did not "skyrocket" under the Obama administration. Oil and natural gas prices have been recessed for years. I will give President Trump all the credit for taking the reigns off the economy and getting it revved up. But it will do nothing if we spend the new gains faster than we earn them. The tax cuts and budget deal were neither smart or fiscally responsible. We can't grow our way out of this pickle if we don't get a hold of our spending. The new worldwide economy is to competitive and we don't have the advantage of being the last economy standing like we did after WWII.
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Post by nautonnier on Feb 14, 2018 11:11:24 GMT
"But why in the hell are we still spending like this if the economy is doing so well?" I believe that this premise is incorrect. The economy has just staggered out of bed after a very close approach to being terminally poisoned. The US economy was within a year or so of total collapse. This was brought on by all the 'global warming' hooplah that made energy prices 'necessarily skyrocket' with government money being laundered through friends of the administration, and by regulations being imposed at a mind boggling rate by a micromanaging federal government which should have been told to remove itself. Manufacturing was leaving the country at a rate only challenged by Australia - all the GDP was fake taking in each other's washing service industry not foreign earnings even those companies that were 'big American' did much of their manufacturing abroad such as Apple and Boeing. SO now over a year regulations have been removed, the punitive rates of taxation on business has been cut, money and jobs have reversed the flow and are now coming back into the country. The stock market can see this and in the main are welcoming the news. However, the country cannot instantaneously turn around and start making a profit. The factories that are opening have yet to sell their goods abroad in a way that is visible on the balance sheets, small businesses are starting up but are not operating yet at full speed. Effectively, the green lights are on and the economy is accelerating with spinning wheels and in a year will be really generating money. It is ONLY generating goods to sell abroad that will pay off the debt that has been run up. Sitting on businesses and holding high tax rates and reducing all government spending may look like 'fiscal responsibility' but will not pay off the debt. That's what was done to Greece. Alongside the increase in productivity should be a reduction in 'make work' jobs and excessive overspending on $700 toilet seats etc. So I suspect that there will be audits of all departments. The federal government has had a hiring freeze for the last year - expect to see more of that. If the Democrats had not spent their time on Russia Russia Russia Russia Russia Russia and throwing grit in the gears of the congress and senate then I believe that there would have been more reductions in federal spending. Possibly entire departments being removed (in line with The Constitution). So - watch what happens in the next few months the important number is the balance of trade. It was reported that the US is selling oil to the Emirates for example. Just that self reliance will reduce outgoing money. The aim should be to reduce imports buy US and sell to the world. You can't do that sitting in sackcloth and ashes while you raise more tax on industry from a rapidly diminishing tax base. Everyone can do their part - check what you are buying does it come from the US or abroad? I am quite certain that the premise is correct. We have a government that is addicted to spending and it does not look like the Trump Administration is going to do anything but increase both the deficit and the debt. Unless there is a drastic change in our spending habits we will be 30 trillion in debt in a few short years. In addition our energy prices and most other commodities did not "skyrocket" under the Obama administration. Oil and natural gas prices have been recessed for years. I will give President Trump all the credit for taking the reigns off the economy and getting it revved up. But it will do nothing if we spend the new gains faster than we earn them. The tax cuts and budget deal were neither smart or fiscally responsible. We can't grow our way out of this pickle if we don't get a hold of our spending. The new worldwide economy is to competitive and we don't have the advantage of being the last economy standing like we did after WWII. Oil and natural gas prices were kept down purely because of fracking that the Feds could not stop. Under Obama they tried. But coal power was heavily cut and the cost of electricity did skyrocket in many states. The important thing is to start selling to the rest of the world - the reason that Trump is now talking about reciprocity in import tariffs. It is also the reason that Trump will dump NAFTA as it really is set up to allow Mexico and Canada access to US markets usually for US manufacturing that has relocated to Mexico and Canada. The national debt is largely with the rest of the world - so the US has to get a positive trade balance with the rest of the world.
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Post by nautonnier on Feb 14, 2018 11:13:28 GMT
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Post by Ratty on Feb 14, 2018 12:16:26 GMT
Posted everywhere !! I hope there aren't royalties attached .... I wonder who will play Obama in the mini series now that Denzil is out?
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Post by blustnmtn on Feb 14, 2018 13:38:30 GMT
Posted everywhere !! I hope there aren't royalties attached .... I wonder who will play Obama in the mini series now that Denzil is out? Denzel is a great actor...he could do it and better than anybody. Sounds like he despises Barry Soetoro as much as I do. (A fitting post to elevate my status)
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Post by glennkoks on Feb 14, 2018 14:59:51 GMT
Since the market tanked in 2008 energy prices have not inhibited our growth. Quite the contrary, cheap energy is one of the few positives we have going for us. And yes trade has to be reciprocal. But free market dynamics in the global economy will dictate where jobs in manufacturing are created not a blowhard in the Whitehouse. Gone forever are the low skill jobs in manufacturing. We cannot compete with cheap labor from developing nations. So all the bluster about bringing manufacturing jobs back is nonsense. We don’t need to bring back anything, it left for a reason. Our future has to be in creating the latest and greatest science, engineering and tech.
Correcting our fiscal issues will take a two pronged approach. Creating a positive economic environment for growth (which Trump is good at) and by getting control of spending (which he does not seem to be good at). As it is now we are simply spending any gains and then some.
Blaming Obama does not fix anything nor does it make Trump “more fiscally responsible”.
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Post by nautonnier on Feb 14, 2018 21:42:28 GMT
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Post by Ratty on Feb 14, 2018 23:02:41 GMT
[ Snip ] Denzel is a great actor...he could do it and better than anybody. Sounds like he despises Barry Soetoro as much as I do. (A fitting post to elevate my status) Not everyone despises Barry; some have a lower opinion of him than others:
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Post by youngjasper on Feb 15, 2018 2:20:17 GMT
I own an interest in a public company headquartered in the UK that four years ago was headquartered in the US. It re-domesticated to the UK because the corporate tax rate was less than the US at that time. Their competitors had all already moved from the US to other lower tax rate countries. The company had to consider the fiduciary responsibility to its shareholders for maximizing the return to them by lowering the tax rate through re-domestication to a lower tax rate country, and they also had to consider competing with other companies that had lower tax expense. This would enter into how competitive their bids were and thus if they were able to secure jobs. As much as I hated the decision, I have to say it was the right thing to do. All shareholders had to pay a capital gains tax on the difference between their basis (what they paid for the stock when they bought it) and the market price at the date of re-domestication. If there was a gain, the shareholder had to pay the tax on the gain. If there was a loss, the shareholder was NOT allowed to deduct the loss as they normally would - typical of the US government and especially the IRS. Personally, I had a gain without the cash from an actual sale of the stock to pay the taxes on. Now with a lower tax rate in the US for corporations, I am hoping many corporations will decide to move their headquarters to the US. This is how additional revenue can be sowed from lower tax rates. The issue in my mind is if the US keep the rates low or simply swing the other way when a new party is in power. This is a critical question. As companies that feel the low corporate tax rate is short-term will not go through the trouble or expense of re-domesticating to the US for fear the corporate tax rate will simply be raised again in three (or seven) years.
Apple has maintained an entity in a very low tax country. That Apple entity holds the technology licenses for their products. All other Apple entities in other countries must pay the Apple entity holding the technology licenses a licensing fee for those licenses, thus Apple uses the licensing fees to lower the profit of all of those other Apple entities and putting the profits in the entity residing in a country with a low corporate tax rate. That entity could be in the US!
By the US making the lower tax rate more attractive than any other country, the US could conceivable bring not only US corporations back home and paying taxes here, but could also potentially bring foreign companies to domicile in the US adding to the tax base. But there must be confidence of stability and sustained low corporate tax rates for this to occur.
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Post by sigurdur on Feb 15, 2018 2:41:41 GMT
The above is true, however, there are caveats attached. 1. What is a stable Gov/environment worth? 2. Observing the reaction to the election of President Trump, I am less confident in the USA as a stable business environment. 3. Watching today how easily the snowflakes are swayed, this tells me their cognitive abilities are not well rooted. Sen Majority Leader McConnell attempted to bring DACA discussion to the Senate floor. Minority Leader Schumer objected. That began a fillibuster. Mainstream media is reporting that McConnell is not bringing DACA to the floor. So few Snowflakes understand the actual Dynamics that they are blaming McConnell. The real sad thing is, they actually believe what they are saying is true. 4. Fiscal hole. The USA is in a fiscal hole. The resulting economic chaos that we all know is coming won't be pretty. China, for all its faults is in better shape than the USA is. Used to be that an economic collapse of the USA would result in world economic collapse. That is no longer the case. Yes, it will hurt but it will become a buyer's Paradise.
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Post by glennkoks on Feb 15, 2018 3:20:49 GMT
I can open a bar and sell .05 cent cocktails. Undoubtably I will re-shore every patron for miles and miles. I won't even have room for parking. I would use my credit card to pay for more booze. I would also create jobs and hire more bartenders and waitstaff. I would use cash advances from my credit card to pay the additional staff. I'm certain it would be the busiest bar in town. But eventually I would max out my cards and have to shut my doors. The key to running a successful bar (or country) is to find a drink price that is low enough to attract business but high enough to still pay the bills. The lower the overhead the cheaper I can charge for my drinks and still post a profit. Cutting taxes while increasing the budget is the fastback to bankruptcy. taxfoundation.org/does-lowering-taxes-increase-government-revenue/
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Post by youngjasper on Feb 15, 2018 3:37:38 GMT
The above is true, however, there are caveats attached. 1. What is a stable Gov/environment worth? 2. Observing the reaction to the election of President Trump, I am less confident in the USA as a stable business environment. 3. Watching today how easily the snowflakes are swayed, this tells me their cognitive abilities are not well rooted. Sen Majority Leader McConnell attempted to bring DACA discussion to the Senate floor. Minority Leader Schumer objected. That began a fillibuster. Mainstream media is reporting that McConnell is not bringing DACA to the floor. So few Snowflakes understand the actual Dynamics that they are blaming McConnell. The real sad thing is, they actually believe what they are saying is true. 4. Fiscal hole. The USA is in a fiscal hole. The resulting economic chaos that we all know is coming won't be pretty. China, for all its faults is in better shape than the USA is. Used to be that an economic collapse of the USA would result in world economic collapse. That is no longer the case. Yes, it will hurt but it will become a buyer's Paradise. Yes, what we lack is the stability. And that is a very important component. China has it. They commit to a project, and the commitment is long term where the businesses can count on it. The lack of long-term stability in the US creates an enormous risk factor. My earlier point was a limited example of what I experienced. Sample size = 2. Not large enough, but factual nonetheless.
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