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Letters to the Editor

Fiscal crisis

December 2, 2011

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To the editor:

When reading Mike Hoeflich’s ominous screed (“US facing constitutional crisis,” Journal-World, Nov. 30), I was reminded of the sick patient, who rather than opting for painful surgery, kept trying to find a doctor who would tell him what he wanted to hear. Merely electing new politicians won’t cure our fiscal problems!

As a nation, we have been living beyond our economic means, and there is a growing realization that if we don’t get our fiscal house in order, the U.S. dollar will lose its status as the global reserve currency. Since our Federal Reserve has been running the printing presses 24/7 for the past decade, should foreign banks start to dump their dollar reserves, Americans will likely need wheelbarrows to go shopping. The automatic cuts mandated in the deficit reduction legislation are the first, small (and painful) steps toward fiscal health.

Comments

Jimo 3 years ago

"should foreign banks start to dump their dollar reserves"

Pray tell: precisely to whom would they "dump" their dollars?

It's a sad day when you have to remind a wingnut that every seller needs a buyer.

Or that there are no alternative investments. (Greek bonds, anyone? Chinese stocks? Perhaps condos in Mozambique? I hear the beaches are marvelous as long as you avoid stepping on the landmines. Maybe Pets.com will arise from the ashes.)

It's doubly-sad when some delusional crank predicts 'shopping by wheelbarrow' at a time when people are willing to lend money to the U.S. at a net real negative interest rate - literally paying Americans for the privilege of throwing money at the U.S. People actually with money, not just those full of hot air.

"The automatic cuts mandated in the deficit reduction legislation are the first, small (and painful) steps toward fiscal health."

With the second being the automatic expiration of the Bush tax cuts and restoration of normal tax levels from their present record-setting lows.

Gee, $2.2T in spending cuts, $4T in more revenue, that's over $6T of deficit reduction .... If you just get unemployed people back to work, you'll balance the budget by the end of a decade. Add on a bank tax and a surtax on the 1% and you could actually pay off the national debt in a generation.

Armstrong 3 years ago

Those are very good short sighted observations and fail to address a real long term solution to the debt and defecit issue

Jimo 3 years ago

ROFL

Imagine. 2,000 characters and I fail to produce a "real" (whatever that is) long term solution to the debt.

But hey, let's avoid any and all the points I made.

Jimo 3 years ago

"You really don't know anything about economics, do you?"

Coming from you that may well be the single most insulting statement ever issued --- A triple doofus who believes in the tax fairy, magic gold, and self-regulating markets.

Reserves by definition are bought and then held. Having bought once, one is not required to buy again. You identify a different issue - issuance of new debt. Yes, for any debt issuer, a time may come where there is no appetite for additional debt. This is unconnected with any topic I addressed. In fact, not only did I not address it but I pointed out that (a) facts already in place would prevent it and (b) would indeed eventually retire all debt so long as big spending, tax allergic Republicans kept their mitts off.

Jimo 3 years ago

And finally the last fellow still smarting from my exposure of him as a liar. (I still get people commenting about that smack-down!)

As usual, you insist on making comments devoid of any content (which is really your only choice given your lack of knowledge about apparently every topic).

Isn't there a link you can provide and claim that it says X when it says no such thing? And that would provide you with another opportunity to avoid coming clean when Moi points this out? And then-Gingrich style--adamantly state that anyone who quotes you must be lying?

Born again American? Jesus wept.

pizzapete 3 years ago

"Merely electing new politicians won’t cure our fiscal problems!" That is so wrong. All we need is a leader that can smile and tell us he's going to start two wars, lower taxes, and deregulate the financial and energy markets into creating more jobs.

nativeson 3 years ago

Leaders are elected by the public. In the end, it is the public that is unable to face the reality of a global economy that is changing our financial picture. Entitlements will diminish, taxes will rise and people will be adversely impacted. It is not a political position, it is the reality of our fiscal situation. The sooner the public understands this concept, the sooner they will elect leaders to mitigate the impending financial meltdown.

Centerville 3 years ago

Keep an eye on what becomes of John Corzine.
What he did is akin to your local bank president cleaning out your checking account to fund his blackjack habit, and the FDIC acting like it's cute. Let's see if MF Global is allowed to trade tomorrow. That will be a sure indicator of whether there is still a rule of law.

pace 3 years ago

Maybe it is time to quit using tax cuts and loop holes for the ultra rich and praying to the money lenders. It is time to tax fair.

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