Posts Tagged ‘ government debt ’

More revenue won’t save Puerto Rico’s corrupt political class

September 17, 2015
posted by

Frank Worley-Lopez The Canal
by Frank Worley-Lopez  

"The information released this week from the governor's office does indeed look grim, but let's not forget that Puerto Rico raises nearly $10 billion per year in taxes, and receives more than $20 billion a year from the federal government, with total expenditures exceeding $28 billion. Puerto Rico does not have a revenue problem. Puerto Rico's problem is not the size of its debt. Puerto Rico’s problem is how much it spends." (09/16/15)

http://tinyurl.com/qy99ocw  

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Why the Greeks should repudiate their government’s debt

September 10, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Simon Wilson  

"In apportioning blame for the Greek government debt crisis, it would be difficult not to lay the major share on Greece itself. With government jobs paying three times the private sector average, a national rail service with a wage bill four times its annual revenue, a public pension system that would pay out generous benefits at fifty for anyone classified as working in 'arduous' professions like hairdressing, there is no shortage of taxpayer-funded largesse running rampant through Greek society. At this point however, dissecting the Greek's failure to live within their means is not only nugatory -- beyond proving the time-tested observation that people like something for nothing -- but also obfuscates the true moral contours of the crisis. Moreover, it blurs our understanding of a fundamental truth crucial not just to the future of Greeks but all peoples: Government debt is not like private debt. In fact, government debt is fundamentally illegitimate and one might even be justified in claiming that anyone seeking to profit from it is aiding and abetting criminal activity." (09/09/15)

http://tinyurl.com/nwro7r5  

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More sequestration: The best bad thing, for now

September 9, 2015
posted by

Thomas L. Knapp William Lloyd Garrison Center for Libertarian Advocacy Journalism
by Thomas L Knapp  

"If American politicians lived in the real world, US president Barack Obama would propose and Congress would pass a balanced budget for the federal government. But American politicians don't live in the real world. Since World War II they've inhabited a utopian fantasy in which the federal government has continuously spent more money than it has brought in, on the promise that that debt will eventually be paid off. Someday. By someone. So we've once again reached the periodic moment of untruth, with a September 30th deadline for Congress to decide between three alternatives ..." (09/08/15)

http://thegarrisoncenter.org/archives/2865  

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Debbie Does Democracy

September 7, 2015
posted by

Common Sense
by Paul Jacob  

"Say the Republicans in Congress want to defund Planned Parenthood. Democrats want to keep funding it, but ... the whole federal government spends over revenue -- by nearly half a trillion this past year. So if Republicans fight the spending and Democrats defend it and the government shuts down because of lack of agreement, it's obvious: both parties shut down the government. Both refuse to compromise. But for some reason, it's only those who want to cut spending who get tarred with responsibility for the lack of a budget." (09/07/15)

http://thisiscommonsense.com/2015/09/07/debbie-does-democracy/  

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The spenders’ eternal excuse

August 24, 2015
posted by

Paul Jacob Common Sense
by Paul Jacob  

"Most modern welfare states have a huge problem: their politicians promise more than government revenue covers. So they borrow and borrow until they can borrow no more. And then they go down. Like Greece has gone down. Banks are closed there, and the people suffer. The problem is over-spending and over-promising (the latter being merely committing to future over-spending, so let's just call it all over-spending). But when you confront a partisan of such extravagance -- whether that person be a politician or a constituency beneficiary or an ideological socialist or social democrat -- the most common defense is: THEY WOULDN'T LET US TAX ENOUGH." (08/21/15)

http://thisiscommonsense.com/2015/08/21/the-spenders-eternal-excuse/  

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Germany: Lawmakers overwhelmingly back Greek bailout, clearing path for loans

August 20, 2015
posted by

Los Angeles Times Los Angeles Times    

"German lawmakers overwhelmingly approved another bailout for debt-ridden Greece on Wednesday, removing the last major obstacle for Athens to receive an emergency infusion of funds to avoid an imminent default. The Greek government is now expected to receive an installment of loans just in time to repay a debt owed to the European Central Bank on Thursday. Missing that deadline would almost certainly result in Greece stumbling into a default and then a disastrous exit from the Eurozone, the group of 19 nations that share the euro currency." (08/19/15)

http://tinyurl.com/qf8fjl9  

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Trumping the federal debt without playing the default card

August 19, 2015
posted by

CounterPunch CounterPunch
by Ellen Brown  

"The vast majority of the money supply today is created by banks when they make loans, as the Bank of England recently acknowledged. Banks create money by 'monetizing' debt, turning loans into the digital deposits that make up most of the circulating money supply. The government could push the reset button by monetizing its own debt, turning it into what it should have been all along -- debt-free, interest-free dollars." (08/19/15)

http://tinyurl.com/py6gz96  

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Four economic myths that perpetuate the euro crisis

August 10, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institue
by Patrick Barron  

"Too much of the commentary about the Greek crisis has focused on whether or not Greece should drop the euro and not enough on the structural problems arising out of decades of socialism. Meanwhile, the Greek government has borrowed more money than the Greek people can possibly repay, and debased money will not make this fact disappear. On the contrary, more easy money will cause even more harm." (08/10/15)

https://mises.org/library/four-economic-myths-perpetuate-euro-crisis  

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In Greece, reliance on public funds is the central problem

August 5, 2015
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Justin Murray  

"Greece is a hot topic at the moment, mostly with the continued negotiations over bailouts from the European Union and, through institutions like the IMF, the world at large. Much of the discussion paints the image that Greece is only a debt-restructuring away from a stable economic situation. However, without understanding how Greece got into this problem in the first place and identifying the root cause of an over-indebted society, any plan or solution has a high probability of failure. To crack into this root cause, I had to develop an entirely new metric called 'implied public reliance.'" (08/05/15)

https://mises.org/library/greece-reliance-public-funds-central-problem  

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Welfare-state parasitism

August 5, 2015
posted by

Jacob G Hornberger Future of Freedom Foundation
by Jacob G Hornberger  

"Imagine a hypothetical horse that is healthy. One day, a tick attaches itself to the horse. The tick begins sucking blood out of the horse but the horse, while discomforted, finds it manageable. Then another tick. Then 100 ticks. Gradually, the horse loses its vitality and becomes weak. At some points, the numbers of ticks become so voluminous and are sucking so much of the lifeblood out of the horse that the horse dies, thereby, ironically, denying the ticks any more sustenance. That's precisely what has happened in both Greece and Puerto Rico and what is happening in the United States." (08/04/15)

http://fff.org/2015/08/04/welfare-state-parasitism/  

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Open letter to Alexis Tsipras

August 2, 2015
posted by

The Cobden Centre
by Keith Weiner  

"The troika wants you to accept another bailout deal, to service Greek debts a while longer. Since bailouts mean borrowing more, you cannot avoid default in the end. Going deeper into debt is no good for anyone. Should you choose to default instead, you will not be able to continue using the euro. Even if the troika doesn't immediately act, the threat is real. No one would lend to the Greek government, or even businesses, with that Sword of Damocles hanging over you. However, you need outside capital to restart production and trade. Otherwise, your industries will be shuttered, even including exports." (07/31/15)

http://www.cobdencentre.org/2015/07/open-letter-to-alexis-tsipras/  

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The IMF experts flunk, again

July 30, 2015
posted by

Steve H. Hanke Cato Institute
by Steve H Hanke  

"My Globe Asia column in May was titled 'Greece: Down and Probably Out.' Well, it's out. Yes, Greece descended from drama to farce rapidly." (07/30/15)

http://www.cato.org/publications/commentary/imf-experts-flunk-again  

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Cut the government workforce or wither Puerto Rico

July 30, 2015
posted by

Frank Worley-Lopez The Canal
by Frank Worley-Lopez  

"[T]he governor continues to avoid the real problem: the size of the local government. How big is it? For starters, of the 900,000 people who have jobs in Puerto Rico, roughly 300,000 work for government." (07/29/15)

http://tinyurl.com/qbsoage  

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Greece: Regime advances in loan talks, under fire for euro exit plan

July 29, 2015
posted by

Killeen Daily Herald    

"Greece pushed ahead with talks on a new rescue loan Tuesday, but its government came under increasing pressure over claims it had a top-secret plan to prepare for a euro exit that involved accessing citizens' personal tax data. Emissaries from Greece's international creditors held a second day of preparatory talks with Greek officials, ahead of higher-level negotiations later this week on the country's new multi-billion euro lifeline." (07/28/15)

http://tinyurl.com/pasexe6  

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“Defense” spending: Time for more than cosmetic cuts

July 27, 2015
posted by

Thomas L. Knapp William Lloyd Garrison Center for Libertarian Advocacy Studies
by Thomas L Knapp  

"A 75% reduction would still leave the US in the position of, by far, top military spender in the world (the cut would have to be more like 90% to match China, the second place spender). Given the American weapons technology edge, an existing arsenal that can be mothballed and re-activated at need, a reserve and National Guard system which can deliver well-trained troops on relatively short notice, and a buffer zone of two oceans between the US and its most likely future enemies, 25% of current spending levels would remain an embarrassment of riches." (07/26/15)

http://thegarrisoncenter.org/archives/2320  

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Hey Puerto Rico: You need money for a sovereign wealth fund

July 23, 2015
posted by

The Canal The Canal
by Nick Zaic  

"Sovereign wealth funds are a well-explored and understood tool in public finance. Put simply, they act like an endowment fund for the nation, to prevent politicians from spending revenues from natural resources on current citizens, preserving the value of the nation’s assets for future generations. ... The entire point is to lock the money away, and only spend the interest on the endowment. You create them when you have too much money. This is the opposite of the problem present in Puerto Rico. The island’s government faces a debt crisis, which is why Baco’s comments are so confusing. One cannot create a new fund full of money to hand to businesses without, you know, having money to hand to businesses." (07/22/15)

http://tinyurl.com/qbn8lkk  

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Greece: Bailout vote to test Syriza party rebellion

July 22, 2015
posted by

Reuters    

"Greece's leftist government urged disgruntled lawmakers on Wednesday to back reforms required for talks on a rescue deal to start, as Prime Minister Alexis Tsipras faced his second major test in parliament in a week. A first set of reforms that focused largely on tax hikes and budget discipline triggered a rebellion in his party last week and passed only thanks to votes from pro-EU opposition parties. The bill lawmakers will vote on late on Wednesday covers rules for dealing with failed banks and speeding up the justice system -- two more conditions set by the euro zone and IMF to open negotiations on a 86 billion euro rescue loan." (07/22/15)

http://tinyurl.com/qfsh8bo  

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Greece: Banks reopen after three weeks but tax increase pushes up prices

July 20, 2015
posted by

NBC News NBC News    

"Greeks woke up Monday morning to a new era: banks were finally open after being closed down for three weeks but new taxes meant coffee, tea and even condoms all cost more. In downtown Athens, people lined up in an orderly fashion as the banks unlocked their doors at 8 a.m., taking a number and reading the paper as they waited for their turn at the till. Many restrictions on transactions, including cash withdrawals, remained, however." (07/20/15)

http://tinyurl.com/prpwa82  

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Sold to the lowest bidder

July 20, 2015
posted by

Idaho Liberty
by Ted Dunlap  

"The banksters loaned the socialist rulers $34,267 per Greek worker -- or a bit over three times what each of them take home in a year -- and this is on top of whatever each Greek is in debt for, like mortgages, vehicles, consumer debt, etcetera. When you or I go to borrow money, the questions revolve around ability to pay it back. Few would bet on the poor Greeks' abilities to service a triple-their-income debt. Were the wealthiest men on the planet spectacularly stupid or was there another plan? Well, let's see how it played out for them." (07/16/15)

http://www.idaholiberty.com/2015/07/16/sold-to-the-lowest-bidder/  

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The financial crisis in Greece shows why we need Bitcoin

July 20, 2015
posted by

Students For Liberty
by Elias Garcia  

"By no means is Bitcoin a perfect money. If used poorly, a determined assailant can trace your activity online. If you do not use an online service for storage and unintentionally lose the hard drive storing your Bitcoins, you lose the money forever. But for all of its flaws, it provides an outlet for the high pressure situation found in Greece, and for all those prone to government and private theft alike." (07/17/15)

http://tinyurl.com/nqnvvp2  

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Greece and the Eurozone: Holding tight to nurse for fear of something worse

July 16, 2015
posted by

Libertarian Alliance Libertarian Alliance
by Robert Henderson  

"The Greek referendum on the terms for a further financial bailout was potentially a clever move by Alexis Tsipras and Syriza. If the result of the referendum had been YES to the terms put forward to deal with the Greek debt, Tsipras and his government were off the hook for reneging on their election promises. If there was a NO to the conditions, Tsipras could play the democracy card and challenge the Eurozone to go against the democratic will of the Greek people or simply walk away from the mess and pass the poisoned chalice to his political opponents. Having asked for a rejection of the terms offered by the Eurozone in the referendum and got an emphatic 61% vote for rejection, Syriza could have called the Euro elite's bluff from a position of strength. Regrettably for Greece's hope of recovery they have not had the courage to do so." (07/16/15)

http://tinyurl.com/on7sr9b  

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Greece: Lawmakers pass austerity bill despite dissent

July 16, 2015
posted by

Altoona Mirror    

"Greek lawmakers voted overwhelmingly early Thursday to approve a harsh austerity bill demanded by bailout creditors, despite significant dissent from members of Prime Minister Alexis Tsipras' own left-wing party. The bill, which imposes sweeping tax hikes and spending cuts, fueled anger in the governing Syriza party and led to a revolt against Tsipras, who has insisted the deal forged after a marathon weekend eurozone summit was the best he could do to prevent Greece from catastrophically crashing out of the euro, Europe's joint currency." (07/16//15)

http://tinyurl.com/odg2orn  

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Failing in the future biz

July 16, 2015
posted by

Paul Jacob Common Sense
by Paul Jacob  

"If you can't sell us the future, you're doing it wrong. We all want to get there in one piece. Right now, a horde of Republican presidential candidates and a small cohort of Democrats vie to present themselves as visionaries, leaders. Yet, what they all have in common is that they ignore the most serious issue facing us. Bigger than borders and terror and ISIS and gay marriage and all that, is the financial stability of the United States." (07/15/15)

http://thisiscommonsense.com/2015/07/15/failing-in-the-future-biz/  

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An “Austrian” economist’s advice for Greece and the EU

July 14, 2015
posted by

Richard M. Ebeling The Daily Bell
by Richard M Ebeling  

"Greece's and the European Union's economic and political crisis will not be resolved through a new debt deal between the government in Athens and the European authorities. It will be merely one more stop-gap 'solution' to a problem whose nature is endemic to the current ideology and politics of State-Power and collectivism. Its real solution requires something deeper and more comprehensive: a revival of the classical liberal ideal of individualism and the economics of free-market capitalism." (07/14/15)

http://tinyurl.com/opj7kyy  

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It’s not just debt: Government spending and easy money fuel the Greek crisis

July 13, 2015
posted by

Frank Shostak Ludwig von Mises Institute
by Frank Shostak  

"[I]t is not debt as such that is behind the current crisis in Greece. Large government outlays and strong increases in the money supply are being ignored in most analyzes of the Greek crisis. Since early 2000, the underlying trend in the growth momentum of government outlays was heading up with the yearly rate of growth closing at 45.5 percent in March 2009. Since then, the trend in the growth momentum has been declining." (07/13/15)

http://tinyurl.com/oqwuet6  

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