Posts Tagged ‘ government debt ’

A primer for understanding Obama’s budget

April 10, 2013
posted by

Cato Institute Cato Institute
by William Poole  

"President Obama will release his overdue budget on Wednesday. It will doubtless project a reduction in the federal budget deficit -- a projection that journalists, commentators and policy makers should ignore. To do otherwise is to be complicit in fraud. Strong statement? Not really. For 50 years or so the federal government has deliberately and to an increasing extent misstated probable future budget deficits." (04/09/13)

http://tinyurl.com/carbea3  

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Obama submits $3.77 trillion budget proposal

April 10, 2013
posted by

Fox News    

"President Obama found himself weathering bipartisan broadsides Wednesday as he sent Congress his 2014 budget proposal, which in its effort to please both sides of the aisle has ended up angering both. The $3.77 trillion spending plan, which is being delivered to Congress two months late, tries to curb deficits by further raising taxes on top earners and reining in the growth of Social Security. But Republicans argue they already consented to increased taxes as part of the fiscal crisis deal and have expressed little interest in negotiating another hike. And liberal Democrats -- particularly powerful advocacy groups -- have launched a series of campaigns to oppose the changes to Social Security." [editor's note: The proposal projects a deficit of nearly $750 billion, and of course that projection is low - TLK] (04/10/13)

http://tinyurl.com/czdqfq9  

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When the government goes bankrupt

April 4, 2013
posted by

Andrew P. Napolitano LewRockwell.com
by Andrew P. Napolitano  

"What happens when the government goes bankrupt? This question is one that sounds like a hypothetical exercise in a law school classroom from just a few years ago, where it might have been met with some derision. But today, it is a realistic and terrifying inquiry that many who have financial relationships with governments in America will need to make, and it will be answered with the gnashing of teeth." (04/04/13)

http://lewrockwell.com/napolitano/napolitano94.1.html  

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For Krugman, the size of a deficit depends on the point he’s trying to make

April 4, 2013
posted by

Robert P. Murphy Free Advice
by Robert P. Murphy  

"OK, so mark that down: Whatever the budget deficits were in the Reagan era, Krugman is saying they were (a) unprecedented (for peacetime) and (b) 'large.' Now, I am not even going to bother finding quotes to back this up, but I hope no one will challenge me when I say that Krugman has referred to Herbert Hoover’s ill-fated presidency as an example of fiscal austerity, the kind of tight-fisted budgeting that we want to avoid. In that context, it is interesting to look at the budget deficits (as a share of GDP) of Hoover vs. Reagan." (04/03/13)

http://tinyurl.com/bqz3wdg  

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Another bloated Republican budget

April 3, 2013
posted by

Laurence M. Vance LewRockwell.com
by Laurence M. Vance  

"Republicans are upset that although President Obama released his picks for the NCAA men’s basketball final four bracket, he didn’t submit to Congress his budget for the next fiscal year as he was supposed to do by the first Monday in February. I don’t know why Republicans are so upset, since any budget that Obama submitted would be dead on arrival in the Republican-controlled House of Representatives. Just don’t think for a minute that Obama’s budget would be rejected because Republicans are fiscal conservatives who want to follow the Constitution, eliminate the deficit, balance the budget, reign in federal spending, and decrease the national debt. The budget recently passed by the Republicans in the House contains unconstitutional spending, has a built-in deficit, is not balanced, does not reign in federal spending, and increases the national debt." (04/03/13)

http://lewrockwell.com/vance/vance328.html  

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I survived sequestration

April 3, 2013
posted by

Michael D. Tanner National Review
by Michael D. Tanner  

"This week marks the one-month anniversary of one of the most terrifying events in American history: the sequester. So, with great trepidation, I have climbed out of my bunker to survey the devastation and send off this column. I was shocked to discover that somehow mankind had survived." (04/03/13)

http://tinyurl.com/d2y5zoo  

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ECB gives Cyprus Monday bailout deadline

March 21, 2013
posted by

Globe and Mail [Canada]    

"Evidently losing patience with the Cypriot government and its stalled bailout plan, the European Central Bank said it will suspend emergency assistance to the country’s banks on Monday unless a rescue is agreed with the European Union and the International Monetary Fund. The threat puts enormous pressure on the Cypriot government to devise a new bailout in the next couple of days or face the eradication of its banking system." (03/21/13)

http://tinyurl.com/cloj8tm  

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Cyprus: Parliament rejects theft of bank deposits

March 19, 2013
posted by

USA Today    

"Lawmakers in Cyprus have rejected a bill that would have taxed bank deposits to help pay for an international financial bailout. The bill, which was amended Tuesday to shield small depositors from the tax, was rejected with 36 votes against, 19 abstentions and zero votes in favor. One deputy was absent. Hundreds of protesters outside Parliament cheered and sang the national anthem when they heard the bill had not passed. Cyprus will now have to come up with an alternative plan to raise money." (03/19/13)

http://tinyurl.com/cxrwntc  

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Poll: Sequester has not hit home

March 11, 2013
posted by

McClatchy Washington Bureau    

"The budget cuts in Washington have not hit home in America, at least not yet. A plurality of Americans think federal spending cuts will have no effect at all on them or their families, according to a new McClatchy-Marist Poll. At the same time, as many Americans think the cuts will have no effect or a positive effect on the overall economy as think the cuts will hurt the economy, the survey found." (03/10/13)

http://tinyurl.com/axk6zhw  

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China doesn’t “own” America

March 11, 2013
posted by

Orange County Register
by Derek Scissors  

"China has fallen behind Japan as the largest foreign holder of U.S. securities. The Department of the Treasury's new numbers are good only through June 30, 2012, but it puts Japan at $1.84 trillion and China at $1.59 trillion. There are lots of things to say about this, but one stands out: The loose talk about China 'owning' America never made any sense and perhaps now can finally end. China's share of all American securities (corporate, municipal, etc.) is only about 2 percent, since the value of all U.S. securities is in the neighborhood of $70 trillion. China's direct holdings of U.S. securities fell $130 billion between June 2011 and June 2012. Did anyone notice?" (03/11/13)

http://tinyurl.com/bmorzdk  

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Bankrupting the system to save it?

March 5, 2013
posted by

LewRockwell.com
by Jonathan Goodwin  

"So-called austerity hasn’t worked. Inflation won’t work. I keep in mind, for the elite control is the most important -- control is best exercised through regulatory democracy. The worst thing that can happen to the elite is for the people to lose faith in this system -- a system designed to sheer the sheep with the sheep’s blessing. Regulatory democracy is the best thing going for the elites to work through in exercising control. The only way this will be possible is through sovereign default, I believe. The people will cheer -- 'our government stuck it to the rapacious banksters. Praise be to the state.' In no time, the elite will ensure that lending to the state begins anew – the best creditor is one with no debt, after all." (03/05/13)

http://lewrockwell.com/goodwin/goodwin27.1.html  

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Two other Toms on the instant situation

February 28, 2013
posted by

Thomas L. Knapp KN@PPSTER
by Thomas L. Knapp  

"I think it's more practical to address those who continue investing, through the purchase of government bonds, in the debts run up by Obama, Reid, Boehner et. al. and let them know that the likelihood of making their money back over the long haul passed 'slim'quite some time back and as of now is right at 'none.' Sooner or later -- probably much sooner than most people think -- that debt is going to be defaulted upon and repudiated. There is no 'if' involved, only an unspecified 'when.' Heck, it may even be this generation! Regardless of when the when is, one thing is certain: You don't want to be holding T-Bills when it arrives." (02/28/13)

http://tinyurl.com/c5s8evp  

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America in denial as fiscal tsunami approaches

February 27, 2013
posted by

Gene Healy Cato Institute
by Gene Healy  

"It’s hard to hear yourself think over all the caterwauling on Capitol Hill about the looming sequestration 'crisis.' For opponents of the spending cuts -- at $85 billion, 2.3 percent of the $3.6 trillion federal budget -- the rallying cry is half Lord Keynes, half St. Augustine: 'Grant me chastity and continence -- but not yet.' But the time for a little fiscal continence has long since arrived. Economists have found that when a country’s debt-to-GDP ratio surpasses 90 percent, you see slower economic growth; we’re currently above 100 percent." (02/26/13)

http://tinyurl.com/av5u4rg  

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The ethics of repudiation

February 27, 2013
posted by

LewRockwell.com
by John P. Cochran  

"In summary, as a taxpayer, you did not borrow the funds, you did not spend the funds, and you have no moral obligation to repay the funds." (02/27/13)

http://lewrockwell.com/orig13/cochran-j2.1.1.html  

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Krugman: High deficits are due to either a depression or a recovery, but never to my policies

February 24, 2013
posted by

Robert P. Murphy Free Advice
by Robert P. Murphy  

"his is classic. For the last four years, Krugman has constantly lecture people on the 'myth' that Obama is a big-deficit guy. Why, it was all about the surging social safety net payments, and the reduced tax receipts, caused by the depressed economy. It just looked like we had big deficits, but it was an illusion that fooled idiots who can’t see how a bad economy changes things. Now, when the CBO forecasts rising deficits down the road, Krugman explains that no, this too is an illusion." (02/21/13)

http://tinyurl.com/b86bg8v  

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As sequestration deadline looms, governors join White House whine-fest

February 24, 2013
posted by

Washington Post    

"Governors from both parties are warning of the damaging economic impact if the White House and Congress fail to reach a deal to stave off across-the-board spending cuts set to take effect Friday. ... Some governors were pessimistic about the prospects for a compromise. They said the budget impasse was just the latest crisis in Washington that is keeping business from hiring and undermining the ability of governors to develop state spending plans." (02/24/13)

http://tinyurl.com/awmkohu  

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My final word (this generation): The debt really is fundamental

October 24, 2012
posted by

Robert P. Murphy Free Advice
by Robert P. Murphy  

"What does it mean in financial, balance sheet terms to run up the government debt? I don’t even care what is done with the funds. Just focus on the act of the government printing up an IOU for, say, $10,000, and giving it to somebody who is alive today. What just happened, in financial accounting terms? Why, the recipient of that new bond gained an asset with a market value of $10,000. So somebody else must have lost. Who? The government, sure, but more strictly speaking it is the future taxpayers." (10/23/12)

http://tinyurl.com/9g9r5xj  

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We need a better debt debate

October 10, 2012
posted by

Michael D. Tanner Cato Institute
by Michael D. Tanner  

"If there was a bigger loser than President Obama on that Denver debate stage last week, it was the conversation about our national debt and the fiscal crisis threatening this country. Throughout the 90-minute debate, both candidates made frequent references to the deficit, the debt, or balancing the budget, but showed little willingness to actually do anything about it." (10/10/12)

http://tinyurl.com/9metgtu  

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Fed undertakes QE3 with $40 billion per month mortgage debt purchases

September 13, 2012
posted by

San Francisco Chronicle    

"The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment. ... [Fed Chairman Ben] Bernanke said the open-ended purchases would continue until the labor market improved significantly." (09/13/12)

http://bit.ly/RV8HIp  

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US politicians’ debt tops $16 trillion

September 5, 2012
posted by

Arizona Daily Star    

"The Treasury Department said Tuesday that the national [sic] debt has topped $16 trillion, the result of chronic government deficits that have poured more than $50,000 worth of red ink onto federal ledgers for every man, woman and child in the United States. The news was greeted with a round of press releases from President Obama's GOP rivals, who used the grim-but-expected news to criticize the president for the government's fiscal performance over his 3 1/2 years in office." (09/05/12)

http://bit.ly/OXDYto  

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Fed moves toward open-ended bond purchases to satisfy Bernanke

September 3, 2012
posted by

Bloomberg    

"Federal Reserve Chairman Ben S. Bernanke says the U.S. economy is 'far from satisfactory.' His colleagues are moving to embrace policies that will stay in place until he’s satisfied. Four Fed presidents have come out in favor of an open-ended strategy for bond buying, with three calling for the program to begin now. Rather than specify a fixed amount of bonds to purchase by a certain date, such a strategy would leave the Fed able to announce a pace of purchases that it could adjust as the economy gets closer to Bernanke’s goals." (09/02/12)

http://bloom.bg/Q0IWTQ  

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US 30-year bonds gain as Fed set to buy

August 13, 2012
posted by

Business Week    

"Treasury 30-year bonds rose as the Federal Reserve prepared to purchase $1.5 billion to $2 billion of securities with maturities of 24 to 30 years. The bond purchases today are part of the central bank’s effort to support the economy by swapping shorter-term Treasuries in its holdings for longer-maturity ones to cap long- term borrowing costs." (08/13/12)

http://buswk.co/QuxsGy  

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US Treasuries fall in longest slide since February

August 11, 2012
posted by

Business Week    

"Treasuries fell, pushing the 10-year note yield to the highest since May, as economic data showed strength, dimming prospects for added monetary stimulus and limiting demand for $72 billion of U.S. debt sold at auctions. The benchmark notes declined for a third straight week, the longest stretch since February, as European finance officials took a pause from recent negotiations to contain the region’s sovereign-debt crisis." (08/11/12)

http://buswk.co/P2672f  

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Spain: Regime unveils new “austerity” under European pressure

July 11, 2012
posted by

Reuters    

"Recession-plagued Spain unveiled new austerity measures on Wednesday designed to slash 65 billion euros from the public deficit by 2014 as Prime Minister Mariano Rajoy yielded to EU pressure to try to avoid a full state bailout. The conservative leader announced a 3-point hike in the main rate of Value Added Tax on goods and services to 21 percent and cuts in unemployment benefits and civil service pay and perks in a speech interrupted by jeers and boos from the opposition." (07/11/12)

http://reut.rs/O5ybwn  

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US pols spend $844.5 billion more than they can steal in eight months

June 12, 2012
posted by

Seattle Times    

"The federal budget deficit is approaching $1 trillion for a fourth straight year even though the government is collecting more tax revenue than last year. The Treasury Department said Tuesday that the deficit grew by $124.6 billion in May." (06/12/12)

http://tinyurl.com/7ulp4f8  

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