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Picture 2

Feb 7, 2013

Borrowing 40 Cents on the Dollar



How can you liberals ignore that 40 cents of every dollar Uncle Sam spends is borrowed?  Do you liberals really believe that you can raise taxes that much on just "the rich?"  The fiscal cliff negotiations were all tax increases, combined with some small spending INCREASES.  That’s right, a balanced approach of all taxes and no cuts.  We conservatives are done with tax increases.  Pass a bill in the Senate with cuts equivalent to the sequester cuts and we’ll carefully consider it.    I'm not big on personal attacks, but liberals seem stubbornly math challenged.  When any government's debt gets too big to pay, the only way to pay it is hyper inflation.
       The Federal Reserve has been buying 70% of Uncle Sam's debt.  They just raised their official inflation target.  Congressional liberals and our liberal president object to ANY spending cuts.  Do you seriously think this can go on forever with no consequences?  How much money can the Fed create before there's a serious problem?  I guess liberals want to do the experiment.  With regard to the relationship of unemployment and inflation, google the Phillips Curve, and cure your ignorance.  Liberals are Debt Deniers.  Every percentage point that the interest rates do go up will cost us about 160 billion dollars per year. Governments that run up this kind of debt, generally use inflation to pay it off in cheaper dollars.  See for example, the Weimar Republic in post WW1 Germany, where it famously took a wheelbarrow full of money to buy a loaf of bread.  I am not sure how you think we can continue Social Security and Medicare when our economy is trashed by hyper inflation and financial disaster.  You seem to think there is no limit to how much money we can print.  Money has value only when it's scarce.  If you print unlimited quantities, it's not scarce.  If the money is worthless, all the compassion in the world is not going to help seniors, including me.
      For me, the optimal inflation rate is zero.  When I was a kid, in the 50’s and 60’s, gold was 35 dollars an ounce and a good sized candy bar was a nickel.  Now, with the Federal Reserve having pursued the “optimal inflation rate” all these years, gold is 1,678 dollars an ounce and a candy bar costs at least $1.25.  Both parties are to blame for that.  However, there is no need to continue looking for an optimal inflation rate.
As far as Republicans not letting Obama have everything he wants, I can only quote a much beloved president: "Elections have consequences."  This is true in Congress every bit as much as it is for the president.
   

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