The Quest for Financial Solvency and Fiscal Prudence in the
Abstract: The
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[I offer extensive quotes in this blog so that the reader can view the exact language and can be confident that nothing was taken out of context or that nobody was misquoted. The easiest way to take in the salient points is to read the emphatic points in the quotes and then peruse my comments. Comments on my comments are always welcome: ryckki@gmail.com.]
The Brits have just initiated their program to cut spending:
The Chancellor of the Exchequer is mocked:
“Don’t worry; this isn’t going to hurt, or not much anyway. Listening to George Osborne deliver his Comprehensive Spending Review, you would be forgiven for thinking that he is giving away more than he is cutting.”[1]-- George Osborne targeted welfare to make up the numbers By Jeremy Warner
This is the very brink of the precipice of the
It should be very clear to all who can add or subtract that socialism is not working here or anywhere else.
The bawling and howling must now commence with solemn marches against the evil banks and their political puppets that are destroying their well-structured and carefully thought out society. The progressives cannot be held responsible for any of this caused by wild spending. Tax the rich is the eternal slogan.
After all the tears, the entire EU system faces a terminal and catastrophic collapse with the euro driving down to zero value like Iceland and the cabalistic deconstruction of this ‘union’ with member states flying off in all directions to print their own currencies again.
Those hard-core Keynesians who hoped for more QE [why stop printing money when we can ‘tax the rich’?] have to be traumatized a bit and the ECB bank cannot form a major majority on any decision. They are paralyzed because their country is essentially divided 50:50 like the
For the
Here are my requirements for a possible solution to US,
It should be clear to all [except socialists] that the following must happen:
[1] The yearly budget deficit should be forced to zero so the debt does not tend to accumulate.
[2] The interest on the current debt must be paid and not monetized.
[3] The principal must be paid off, also, in contemporary time units as debt obligations come due.
[4] New spending projects must balance with cuts to approach zero sum.
These four steps are a nightmare and the resistance to these actions will be fierce. The same process must hold for the
Notice that the new and wonderful spending on carbon footprint reductions, windmills and other follies[5] like perhaps offering schools with maybe a dozen languages available everywhere and at no cost are now out of reach. This spending cut theory is austerity in full bloom and cuts at the very heart of socialism, the true intention of progressives, liberals and radicals. Their will be much gnashing of the fangs over this one.
There is no reason to believe that this can happen [in full] anywhere. The polis in every entity is loaded with entitlement holders.
I frequently paraphrase Adam Smith in cases like this:
“If you are stupid enough to give voting rights to the low classes then they will vote your money directly into their pockets while it lasts.”[6]—rycK paraphrasing Adam Smith.
Politicians in the US, UK and EU have no will power to set up such a program and even if they did the socialist half of the polis will vote only for more money and import poverty to stuff ballot boxes and bawl about welfare. Thus, there is only one chance to do this in two years or before elections are held in the US and other countries in the West. Too much cutting and the ignoranti will think that the left can provide them money and entitlements and more and vote to reverse the political vectors of the current government. Then we will have slugs like Spartacus back on our cases.[7]
Note that this 2% of
The potential outcome then is that these goals can be doubtless achieved only by inflation and defaults.
The
Overspending, to bribe voters to keep socialists in power as we see in
California has the standard liberal [hence terminal] mental disease that forces them to hearten pot smoking, perversions and raising taxes on everything in sight to service more and more lazy citizens holding cozy union jobs in government and their allies the noble illegal aliens who are working very hard to get a piece of the good society although they commit several felonies each to do this including voting. CA then wishes for gifts to prevent them from crashing as the
The goal to balance cuts and taxes in the
“Whether the Chancellor can continue to claim that the balance of his fiscal consolidation is 80 per cent cuts and only 20 per cent tax increases is open to debate. Sure enough, lower entitlements are a cut in Government spending, but they also amount to an effective tax rise, as the net effect is to depress the disposable incomes of those affected in the same way as a tax rise would.”--George Osborne targeted welfare to make up the numbers
The purpose of entitlements was to grow government and force the polis to vote for socialism.[19] This worked in many places and now the financial systems in many nations are ready to collapse. The threat of fiscal or economic collapse is apparently not a threat to the far left and their socialist allies. The rabid left can find great opportunities to charge capitalism and start revolutions if this happens.
That is what they have decided to do[20] and now [written
We are sailing off into unknown waters with no compass, water or charts. This might not end well.
rycK
Comments to: ryckki@gmail.com
[1] George Osborne targeted welfare to make up the numbers By Jeremy Warner
[3] http://www.telegraph.co.uk/finance/economics/8075240/Bank-of-England-split-three-ways-as-Adam-Posen-urges-extra-50bn-stimulus.html
[4]
[5] 300 Years of British Inbreeding Brings us Flop Ears the EcoNazi Prophet of Doom
The Princeling of Wails has Started the Dooms Day Clock: 99 Months to Go to Doom. http://rycksrationalizations.blogtownhall.com/2009/03/12/the_princeling_of_wails_has_started_the_dooms_day_clock_99_months_to_go_to_doom.thtml
[7] Pelosi: The New Red Flag Rules of Spartacus.
[8] The Fed Thinks of Ways to Claw Back Some of the Stimulus Money: This Will be A Disaster as Congress Will Continue to Spend and Spend.
[9] The Fed Thinks of Ways to Claw Back Some of the Stimulus Money: This Will be A Disaster as Congress Will Continue to Spend and Spend.
[10]
[11] The Road to Social Success, Peace and Justice:
[12] As Predicted:
[13] Copulating with Coprolites: The Unveiled Mechanism of Governance by Progressive Liberalism in
[14] The Proud March of the Financial Lepers:
[15] California Becomes the National Leper like
[16] 650,000 Strawdogs Bark at the Moon. The Obama ‘Recovery’ is a Numerical Monkey Circus
[17] Belligerent Ignorance, Phony Economics and the Clunker Crusaders:
[18] The
[19] Our Choice Now: Cut Expenses or Go Down the Road to Financial Oblivion.
[20] Adam Smith’s market never stood alone By Amartya Sen Published:
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