The Return of the Currency Wars

[LeveragedBuyout]

I read "voluntary de-emphasis on military and foreign influence" as isolationism.

I see. I don't mean to be pedantic, but I used a different meaning for "emphasis":

Random House Dictionary
5) prominence, as of form or outline
"The background detracts from the emphasis of the figure."

In other words, Germany is not overt/Germany is subtle in its non-domestic dealings. Anyway, a simple case of mis-communication.

 

[tonyget]

@LeveragedBuyout

What's your opinion on US debt ceiling crisis ?

If the US keep raising debt ceiling, the debt will grow bigger and bigger like snowball; If doesn't, the credit rating will be downgraded.

 

[LeveragedBuyout]

@LeveragedBuyout

What's your opinion on US debt ceiling crisis ?

If the US keep raising debt ceiling, the debt will grow bigger and bigger like snowball; If doesn't, the credit rating will be downgraded.

If something cannot go on forever, it will stop.
-Herbert Stein's Law

It's an intractable problem. The issue of the debt ceiling stems from Republican frustration at the majoritarian (authoritarian) way the Democrats have run the government, just ramming through all of their ill-advised entitlement programs without a thought for how to pay for them and over the legitimate objections of fiscal conservatives. The Republicans, naturally, oppose increasing taxes to pay for these programs with which they do not agree (reflecting the opinions of approximately half of Americans), so the programs are inevitably funded through debt. Refusing to raise the debt ceiling has been an indirect way to try and strangle these programs, but the left-wing media generally collaborates with the Democrats to blame the issue on Republicans, and the Republicans inevitably back down.

The only long-term solution to our debt problem is entitlement reform (i.e. downsizing the entitlement programs and making individuals more responsible for the costs of their own healthcare and retirement). Since Democrats have an in-built advantage in the political system (giving citizenship to illegal aliens, bribing voters with handouts, etc.), it is unlikely Republicans will ever be able to control both the Presidency and the Congress with sufficient majorities to enact these reforms. Until reform happens, debt will continue to spiral out of control, and eventually the bond markets (and China) will no longer trust our ability to repay the debt. Interest rates will skyrocket, a financial crisis will occur, and then we will have no choice but to reform.

Churchill once said that Americans will always do the right thing, only after they've tried everything else. His axiom holds in this case as well.

 

[Hamartia Antidote]

it is unlikely Republicans will ever be able to control both the Presidency and the Congress with sufficient majorities to enact these reforms. l.

Um...uh...here is the chart. Everybody can make their own judgements as to what the data means....at least for the last 20 years.

 

[LeveragedBuyout]

Um...uh...here is the chart. Everybody can make their own judgements of what the data means....at least for the last 20 years.

View attachment 53934

Really? You're going to hold the Republicans responsible for not fixing the entire entitlement problem within the four year window they were given in 2002-2006, coming off of a recession, and without the super-majority needed to ram those reforms through the Senate (case in point: Bush's social security reform proposal)? The last time Republicans had the power necessary to enact this level of reform was 100 years ago. The last time the Democrats had that kind of power was four years ago.

It's easy to ram through bribes, like Obamacare. It's far more difficult to rescind the bribes.

 

[Hamartia Antidote]

Really? You're going to hold the Republicans responsible for not fixing the entire entitlement problem within the four year window they were given in 2002-2006, coming off of a recession, and without the super-majority needed to ram those reforms through the Senate (case in point: Bush's social security reform proposal)? The last time Republicans had the power necessary to enact this level of reform was 100 years ago. The last time the Democrats had that kind of power was four years ago.

It's easy to ram through bribes, like Obamacare. It's far more difficult to rescind the bribes.

All I'm saying is I see a lot of red in the last 20 years. Why is it the Democrats seem to be able to leverage their short stints to do damage yet the Republicans seem to twiddle their thumbs.

 

[LeveragedBuyout]

All I'm saying is I see a lot of red in the last 20 years. Why is it the Democrats seem to be able to leverage their short stints to do damage yet the Republicans seem to twiddle their thumbs.

It is easier to destroy than create, and it is easier to bribe than reform. Why the discrepancy in action? When it comes to bribes, there is no shortage of politicians willing to spend taxpayer money, so both parties spend when in power. When it comes to reform, the differences emerge. When Democrats have wanted reform, they have found Republican support (e.g. welfare reform in the 1990s). The same cannot be said of the opposite scenario. That is why Republicans needs super-majorities to enact reform and Democrats only need simple majorities.

 

[Hamartia Antidote]

It is easier to destroy than create, and it is easier to bribe than reform. Why the discrepancy in action? When it comes to bribes, there is no shortage of politicians willing to spend taxpayer money, so both parties spend when in power. When it comes to reform, the differences emerge. When Democrats have wanted reform, they have found Republican support (e.g. welfare reform in the 1990s). The same cannot be said of the opposite scenario. That is why Republicans needs super-majorities to enact reform and Democrats only need simple majorities.

From 2003-2007 the Republican's controlled everything. They could have rolled back as much entitlements as they could. What did they accomplish instead..a recession.

I'm not a Democrat or a Republican but I can't give the Republicans any credit for being able to set anything straight. They are just as incompetent as the Democrats.

 

[LeveragedBuyout]

From 2003-2007 the Republican's controlled everything. They could have rolled back as much entitlements as they could. What did they accomplish instead..a recession.

I'm not a Democrat or a Republican but I can't give the Republicans any credit for being able to set anything straight. They are just as incompetent as the Democrats.

It is unclear why you keep dismissing the filibuster as though it did not frustrate Republican efforts at social security reform. The Democrats were unencumbered by that obstacle when they passed Obamacare, due to Arlen Spector's treachery and the reconciliation trick.

Republicans are not pure, no doubt, but they have not wielded the level of unilateral power that Democrats have seen in recent decades, so it was not within their power to roll back the entitlements, and was never a possibility.

 

[somsak]

I and some of my friends think that currency speculation is non productive.
Someone get rich because manipulating currency value.
What a leech of the worlds wealth.
Do you see? By trading currency for a living you do.not do any production or service other people need. Yet these currency manipulators are getting rich.
My above sentence is not so true.
Currency speculators help stabilize the price between currencies.
Yet they produce no product or service for society.
The need of stabilizer will end if dollar is pegged with gold. This will remove the Biggest leech ever. Its called inflation and people behind them. Inflation is not a natural phenomenon. Its human created with human greed. The money leeched out from world inflation create science R&D, and US bases. These inflation robs people with savings. The way you save ur saving on this kind of world is to go stock market.
But it is not fair that someone can print QE.
Gold is god money. Pegged with gold and ur global reserve currency status thrive. Otherwise, people around the world has some jealousy that you print money to buy their laboured goods or services.

 

[Hamartia Antidote]

It is unclear why you keep dismissing the filibuster as though it did not frustrate Republican efforts at social security reform. The Democrats were unencumbered by that obstacle when they passed Obamacare, due to Arlen Spector's treachery and the reconciliation trick.

Republicans are not pure, no doubt, but they have not wielded the level of unilateral power that Democrats have seen in recent decades, so it was not within their power to roll back the entitlements, and was never a possibility.

Both the Democrats and Republicans filibuster to the point of gridlock. Nobody is innocent.

 

[tonyget]

It's an intractable problem. The issue of the debt ceiling stems from Republican frustration at the majoritarian (authoritarian) way the Democrats have run the government, just ramming through all of their ill-advised entitlement programs without a thought for how to pay for them and over the legitimate objections of fiscal conservatives. The Republicans, naturally, oppose increasing taxes to pay for these programs with which they do not agree (reflecting the opinions of approximately half of Americans), so the programs are inevitably funded through debt. Refusing to raise the debt ceiling has been an indirect way to try and strangle these programs, but the left-wing media generally collaborates with the Democrats to blame the issue on Republicans, and the Republicans inevitably back down.

The only long-term solution to our debt problem is entitlement reform (i.e. downsizing the entitlement programs and making individuals more responsible for the costs of their own healthcare and retirement). Since Democrats have an in-built advantage in the political system (giving citizenship to illegal aliens, bribing voters with handouts, etc.), it is unlikely Republicans will ever be able to control both the Presidency and the Congress with sufficient majorities to enact these reforms. Until reform happens, debt will continue to spiral out of control, and eventually the bond markets (and China) will no longer trust our ability to repay the debt. Interest rates will skyrocket, a financial crisis will occur, and then we will have no choice but to reform.

Churchill once said that Americans will always do the right thing, only after they've tried everything else. His axiom holds in this case as well.

That's what happened to Greece, entitlement system bankrupted the country. Greece got bailed out by EU, who is gonna bail out America ?