51 DAYS SINCE DEFICITS DECLARED UNSUSTAINABLE

[RDANGELO]

On March 2nd, Federal Reserve Chairman Alan Greenspan declared that the current deficits were unsustainable. He also stated that the cost of making ****'s tax cuts permanent would add 1,8 trillion dollars to the federal debt. To this date , **** and the republican congress have proposed nothing substantial to reduce the deficits.
Currently , the cost of the operations in Iraq are not being included in the budget. The cost of this is estimated at 207 Bil. by the end of this fiscal year. Also off the budget is the cost of transition for ****'s Social Security privatization plan ,which is estimated at 104.5 bil. for the first year and 2.2 trill over the decade.

Running these deficits has resulted in the US compiling 7 trillion dollars of debt. This means that as our country produces wealth,we have to use some of that wealth to pay off the debt instead of create jobs or provide for services.

The **** propaganda machine has portrayed him as strong and resolute leader, but the only people he has asked to make sacrifices in Iraq are the men and women he has ordered to put their lives on the line.If he believed the operation in Iraq is as important to the future of our country and the world as he says it is , he ought to have the guts to ask the American people to pay for it instead of wrecking our economic future buy running up the national debt.


www.nytimes.com/2005/03/02/business/02cnd-deficit.html?...

The US trade deficit for February hit a recored 61.04 in February.Like Frankensteins monster,the free trade at any cost deficits are now out of control. Nothing the *administration does seems to do any good.

http://ap.tbo.com/ap/breaking/MGBIDBM3G7E.html

The stock market plunges. Is this the beginning of the end for the Bushco insane economic policies?


April 20th, Greenspan repeats his warnings.
http://www.nytimes.com/2005/03/02/business/02cnd-deficit.html?ex=1114315200&en=85d4a18463effba8&ei=5070

[mhr]

1. Its All Part Of The Grover Norquist Plan - "Starve The Beast"

Greenspan is merely fulfilling his role as actor stating the obvious so Norquist's minions, Republican Politicians, can justify cutting social programs.

With Republicans, one must always look behind the curtain to ascertain the real agenda.

[ProfessorGAC]

4. It Will Fail

The beast can't starve. I know Norquist thinks this, but he's wrong. The beast cannot starve as long as there are roads to maintain, (and sustain economic viability), defense contractors to pay, a whole imperial city to keep up, and more than a half-million pensions to pay.

It's a stupid plan, by a stupid little man.

In reality, we will just go deeper into debt, until someone has the political courage to raise marginal tax rates to increase revenues. It's the ONLY solution, and everyone is so worried about their own little fiefdoms that they lack the will to do the right thing.

But, the beast will NEVER starve. Only idiots like Norquist think this will really happen.
The Professor

[mhr]

5. Hi Professor - I Agree With You - Nonetheless Norquist

And other bit players like Greenspan don't agree with us and they are in power now.

The net effect will be larger debt repayments once this crew is removed from power.

[ProfessorGAC]

6. The Debt Is Sustainable For A VERY Long Time

There have been countries that have had total national debt that exceeds their GDP by >100%. In every case, the country, without revolution, came back to prosper (at least in relative terms).

Ours is less than 70% of GDP. The problem is the macroeconomic drag of year to year deficits, which simpletons like Norquist don't understand. It hurts them and their pals as much as anyone else, but they don't see the difference between deficit and debt. Therefore, they think their plan is working. It isn't.

The debt ceiling, sustainable, is FAR higher than what we have today. It's bad, but not bad enough to starve the beast.

The debt is serviceable far, far into the future. And that debt service will EVENTUALLY require higher taxes on future generations. But, will still never starve the beast.

Another Note: Remember that other countries with military might, throughout history, have borrowed money in excess. When the debt got too intense, what did they do. REFUSE TO PAY IT BACK, and DEMAND retirement of debt. If we did that, people would be really hacked off, but what would anybody do about it? That's always the trump card. The rest of the world can't live without our economy (sad, but true), so they can't cut us off, and they can't stop us from doing just about anything we want. The "Fear Not Respect" types always believe this is Plan B.
The Professor

[kansasblue]

2. Will this help?

Washington -- The House approved an energy bill Thursday that will provide billions of dollars in TAX BREAKS to boost domestic energy production, over the objections of lawmakers who called the measure a costly giveaway to the energy industry. Source: Associated Press

[clem_c_rock]

3. Get ready America will be living in a Mad Max world soon