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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

pace 2 years, 4 months 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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Centerville 2 years, 4 months 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.

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Liberty_One 2 years, 4 months ago

This is what Jimo believes in: "By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens." --John Maynard Keynes

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nativeson 2 years, 4 months 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.

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pizzapete 2 years, 4 months 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.

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Jimo 2 years, 4 months 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.

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