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Letters to the Editor

Financial crisis

July 28, 2011

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To the editor:

I listened to President Obama, with incredulity, as he lectured the American people on the spending habits of the last administration and his own efforts to revive a struggling economy. This president rescued nothing and, if anything, has led this nation to the precipice of financial disaster. Everything he or his administration has proposed, economically speaking, is a failure. It is all based in academia and nothing from the world of reality.

The major bond rating companies of the world are considering downgrading the credit of the United States. Does the term “full faith and credit” mean anything to anybody? This is what our currency is based on. These rating companies are not looking at the debt ceiling; they are looking at our out-of-control spending. Has anyone considered what would happen if our currency is devalued?

Rep. Boehner’s proposal of over $1 trillion in cuts, to match a debt limit increase, is over a 10-year period. This is like bringing a squirt gun to a brush fire. It won’t work. Future congressional bodies are not obligated to honor these cuts. A balanced budget amendment must be put into place immediately. Congress must take definitive steps to restrict its own spending ability.

The American people deserve better than this because we are better than this. The federal government needs to get out of the way and allow the engine of the free market to once again drive the prosperity of our great country.

Comments

Gandalf 3 years, 5 months ago

Gotta love the repub mindset. No matter what they cause it's the democrats fault.

rtwngr 3 years, 5 months ago

Gotta love the mythological wizard mindset. So...... middle Earth. Grow up.

gogoplata 3 years, 5 months ago

Which party prefers to pay as we go? Neither Which one wants to indenture the future generations? Both

Siding with Republicans or Democrats is like choosing sides between Pro Wrestlers. They put on a good show for you, they act like they hate each other, but in the end they are on one side and you are on the other.

Richard Heckler 3 years, 5 months ago

After spending so so many decades in Washington D.C on tax dollar payrolls republicans are sure they learned all they needed to know about OUR money and founding reckless economies. Republicans have much experience under their belts and they never quit sharing.

For openers...

  1. TABOR is Coming by Grover Norquist and Koch Bros. http://www.dollarsandsense.org/archives/2005/0705rebne.html

  2. The Reagan/Bush Savings and Loan Heist(Cost taxpayers $1.4 trillion) http://rationalrevolution0.tripod.com/war/bush_family_and_the_s.htm

  3. Wall Street Bank Fraud on Consumers under Bush/Cheney http://www.dollarsandsense.org/archives/2009/0709macewan.html

  4. Bush and Henry Paulson blew the $700 billion of bail out money? http://www.democracynow.org/2009/9/10/good_billions_after_bad_one_year

And that tax cuts do nothing to make an economy strong or produce jobs.

  1. Still A Bad Idea – Bush Tax Cuts - The ENTITLEMENT program for the wealthy at the expense of the middle class http://www.dollarsandsense.org/archives/2001/0301miller.html

In the end big debt and super duper bailouts were the results which does not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

  • Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

  • Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

• Fully 81% of the national debt was created by just these three Republican Presidents. http://www.dollarsandsense.org/archives/2010/0111orr.html

Flap Doodle 3 years, 5 months ago

How many times this week have you posted this same twaddle, merrill?

scott3460 3 years, 5 months ago

Till we are rid of these right wing abusers?

Richard Heckler 3 years, 5 months ago

What's missing from this national deficit debate? Job Jobs Jobs and removing the large tax dollar subsidies to very wealthy USA corporations across the board aka corporate welfare!

If city/state governments and the federal government would cut corporate welfare and invest this money in IMPROVED Medicare Single Payer Insurance for ALL :

  1. many of us would be saving thousands of dollars annually

  2. big business and small business could operate for less

  3. all governments and school districts could cut operating expenses substantially

  4. employed blue and white collar workers would be healthier thus more productive

  5. all humans would have necessary healthcare 24/7

  6. in general OUR cost of living would decrease across the board

  7. New industry,small business and jobs would develop

Thus our tax dollars would be invested in our local communities providing a jump start to economic growth that has been squandered as one result of corp welfare.

cato_the_elder 3 years, 5 months ago

Excellent letter, Scott. Profligate spending by liberal politicians in both political parties must be stopped, and stopped now.

weeslicket 3 years, 5 months ago

cato says: Profligate spending by liberal politicians in both political parties must be stopped, and stopped now. but not in 2000, when it would have been a lot easier. right?

also, cato says: Profligate spending by liberal politicians in both political parties ... fale. check your database for the term "liberal", as previously described by cato.the.elder.

matchbox81 3 years, 5 months ago

The democrats have accepted that spending needs to be cut (despite what it will do to unemployment rates), however the Republicans will only accept cut spending on their terms, which is most advantageous for their election. If the vote to increase the debt limit is acrimonious now, it's going to be near impossible in 6 months during the middle of an election year. The credit agencies probably won't see a 6 month extension as a realistic way of dealing with debt.

scott3460 3 years, 5 months ago

Is this going to be good like when the FAA tax lapsed recently and the airlines simply raised their prices to suck up millions in extra profit?

george w. bush's tax cuts have been very good for Wall Street and corporate America. The rest of us? Not so much!!

CountyResident 3 years, 5 months ago

I suggest that you go to today's LJWorld.com and read the article "Federal debt crisis: a Q&A" and read the answer to the question "How did the debt grow from $5.5 trillion in 2001 to its current $14.3 trillion"

It is to bad this article wasn't in yesterday' paper as it would have save you the time of writing your letter to the editor.

You can just page back. It's easy to find.

JohnBrown 3 years, 5 months ago

Isn't it wonderful how Republicans have all the economic answers? They just "know" what will...and what won't work in an economy.

But wait...wasn't it Republicans who destroyed Clinton's balanced budgets and surpluses, wasn't it Republicans who said "deficits don't matter"? Wasn't it Republicans who DOUBLED the national debt, not once, but TWICE? Reagan doubled the debt, and GW Bush doubled it again.

Wasn't it the Republicans who said lowering taxes for the rich would "create jobs"? But after 10 years of the Bush tax cuts, where are the jobs? Why haven't they 'happened'?

And wasn't it the Republicans who didn't see the economic disaster known as the Bush Recession coming?

I guess that's what happens when you have a faith-based economic policy devoid of facts.

Here's a fact: Roosevelt did deficit spending to get the US out of the Great Depression. We were recovering with that deficit spending, just as Germany and England were with deficit spending. Then, in 1936 the Republicans came to power and demanded a balanced budget, which we did. So, in 1937 a new recession WITHIN the depression occurred. The deficit spending resumed in '39 and finally got us out of the depression.

So nothing's new under the sun, including Republicans being totally wrong this time just like the last time.

Crazy_Larry 3 years, 5 months ago

Was it a cut in spending or the 90% tax on the wealthy? A little bit of both, I imagine.

Crazy_Larry 3 years, 5 months ago

Screw that! Why does person A get 80% in deductions, and person B nothing? Your scenario is far to complicated and doesn't seem equal/fair to me -- at all... Are there valid reasons for the confounding tax code we're subject to? I would refuse to participate in the game if I were person B.

Crazy_Larry 3 years, 4 months ago

Sigh, and my point was that the tax code shouldn't be so complicated--everyone should be paying their fair share. The tax code is purposely convoluted specifically so certain people (rich) can avoid paying taxes.

Crazy_Larry 3 years, 4 months ago

Violent overthrow of the government is the only solution....are you with me?

08Champs 3 years, 5 months ago

Dear Congress - I pretty much hate all of you. Quit embarassing us in front of the whole world.

Spending cuts are needed, tax reform is needed. Not one, not the other. Both. If my family went into debt I'd get a 2nd or 3rd job to increase revenue AND cut the household budget.

And Scott - for you to lay this entire debacle at the feet of President Obama is reprehensible and irresponsible. It has taken many years to drive these coffin nails. It didn't happen over the last 2 years.

beatrice 3 years, 5 months ago

Good thing we have all those tax cuts for the wealthy in place. Oh sure, it pushed the debt higher during times of war when we were spending well about our budget (but not including it in the budget until Obama took office). Sure, those funds could have been used to fund the wars, but they created so many jobs that we don't have to worry about unemployment.

Oh wait. They didn't create jobs? Unemployment numbers are still high? You mean Trickle Down Economics doesn't work? Gee, who knew?

The President kept the nation for falling into a greater economic dispare with his actions, and the Republicans are making political theater out of the debt ceiling issue. They passed it how many times in the past, but this time... oh no, can't do that! What nonsense. Even Boehner is recognizing the problem coming from the zealots among the Republican party.

scott3460 3 years, 5 months ago

And if the bush tax cuts put us in that hole, when will we stop that digging?

George Lippencott 3 years, 5 months ago

What tax cuts for the wealthy? Do you mean the Bush tax cut or the Reagan tax cuts?

Relating them to your comment is really out of sequence.

The current economic disaster can be laid on a number of things 1. A large number of government guaranteed home loans that were made to people incapable of servicing them - trigger 2. Really poor decision by people chasing wealth and creating bubbles (tech, wireless, homes, commodities, derivatives, etc.) 3. Political decision to compete US workers with cheap foreign labor 4. Too many unpaid wars 5. Too much regulation 6. Way too much pandering to voters

Stop trying to lay this mess on any one administration. There is plenty of blame to go around!

And oh by the way, taxing the rich as Mr. Obama suggests would not even dent the current accounts problem let along the long term strucrtural problem. Remember, I support taxing them but as a matter of equity not revenue.

We can not continue to allow the rich to avoid taxation while the poor (half the tax payers) pay little or nothing and then think we will have the revenue to pay for everything we seem to want Only the upper middle class (100K) is paying at near long term rates.

madameX 3 years, 5 months ago

Isn't the context of "full faith and credit" in the constitution the Full Faith and Credit Clause?As in "Each state shall give full faith and credit to the laws of each other state"? So yes, it means plenty to me, but I'm pretty sure it has nothing to do with our currency.

yourworstnightmare 3 years, 5 months ago

The reckless spending binge and tax cuts of the Bush administration is what has ruined the economy. Bush came in with the Clinton surplus, and quickly turned that into a huge deficit.

Fighting two wars while at the same time cutting taxes and increasing spending has gotten us to this point.

The GOP continuously say that they have the answers, but their failed policies of tax cuts for the wealthy have ruined the economy.

Flap Doodle 3 years, 5 months ago

In November of 2012 we'll see how well the "blame Bush" routine holds up with the voters. It's about the only bolt in the current regime's quiver.

weeslicket 3 years, 5 months ago

heh. heh. snap.pop.no.crackle said "quiver"

Cincinnatus 3 years, 5 months ago

The Truth about Default: We are now beyond partisan accusations of whose fault this mess is. Much ink has been spilt over the Washington Kabuki dance over deficit reduction and fiscal default. But not much has been said about the day after. Those you old enough to remember the movie filmed in Lawrence about the consequences of US-Soviet nuclear missile exchange will know what I am talking about. How many of you have lived through a collapse of a financial system? I had that dubious honor just twelve years ago in Moscow. I arrived there the day the ruble collapsed. I was supposed to meet with the daughter of a friend of mine from Kansas State to give her some dollars her dad had sent her. She had flown up from Voronezh to meet with me. We both discovered that we had no access to our bank accounts, ATMs, or money-changing facilities. No one knew what any money -- rubles, dollars, marks, francs or pounds -- was worth. On 13 August 1998, the Russian stock, bond, and currency markets collapsed as a result of investor fears that the government would devalue the ruble, default on domestic debt, or both. Annual yields on ruble denominated bonds were more than 200 percent. The stock market had to be closed for 35 minutes as prices plummeted. When the market closed, it was down 65 percent with a small number of shares actually traded. ATMs ceased to work, banks would not accept rubles or foreign currencies because no one knew what anything was worth. Those at the bottom of society lost most. Their pensions vanished. You saw more old folks begging on the streets. They were joined by the soldiers who did not get paid. But even those with jobs could not get their salaries or access their savings. The source of the disaster was incompetent political and economic leadership. But all Russians paid a high price. Faith in a market economy and an open society, which had been week in Russia, disappeared. The stage was set for managed capitalism and a strong central state with limits on free speech and political parties. Barring an eleventh hour resolution, on August 2 the United States will default on its financial and contractual obligations. This means repudiating solemnly incurred and contracted obligations to millions of citizens, contractors, investors, both domestic and foreign, and governments. This repudiation of our obligations amounts to a declaration of bankruptcy. But we are not only proclaiming our fiscal bankruptcy to the world, but also our strategic and even moral bankruptcy. This is not just because obligations bearing the full faith and credit of the United States will have been swept aside in cavalier fashion. Rather it is because the US’ collective leadership will have shown by this action a callous disregard for the US’ interests and values, as well as a sovereign contempt for its citizens, and the rest of the world. Anyone who thinks otherwise is simply deluding himself and others.

JohnBrown 3 years, 5 months ago

Liberty,

Congress spends the money. Congress authorizes the bills, passes them, then hands them over to the Executive Branch to do it.

Now..don't confuse "spending" with "paying your bills". Spending is what gets bought from today on. Paying your bills is for what was already authorized and spent.

The debt limit has to do with paying the bills already authorized and spent.

Now, do you really want the USA to be known as a country that buys things -- based on their full faith and credit-- but then doesn't then pay for them when the bills come due?

MrRighty 3 years, 5 months ago

Everyone is right and no one is right. Its both parties' faults. From 1950 to 2000, the debt steadily grew from $257 billion to $5.6 trillion. Not only has it NEVER been paid off (the only REAL surplus that counts folks) but it has only been reduced twice. Not in the Clinton years.....certainly not in the Bush and definitely not in Obama's years...it was 1951 under Truman and 1957 under Ike. the only "surpluses" under Clinton were when revenue "happened" to exceed budgeted spending due to a booming economy. And Presidents should hardly EVER get credit (or blame for that matter) for the economic performance under their watch. Major economic trends take years to happen. The prevailing opinion is that thereis about a 10 year lag. So Clinton can thank the Reagan and Bush Sr. years for his cornucopia, and on and on and on. The rate of increase is more alarming. From 1950 it took 32 years to quadruple the debt. From there it only took 12 years to do it again, and 15 years to triple it again. All Presidents have done it, both parties espouse the extra spending and no Presidency or Congress has EVER effectively tried to reduce the debt. Fix that problem, and a lot of other trouble evaporates by itself.

Richard Heckler 3 years, 5 months ago

Repubs don't know how ease the nations debt crisis. They are 81% of the debt and they are the most reckless managers of money in the history of america.

After 31 years they still have not figured out that massive tax breaks for the wealthy adds billions upon billions upon billions to the debt. How can any party be this seriously dumb?

It's simple. Remove all the Bush tax breaks and kill the massive subsidies going to wealthy corporations.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

  • Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

  • Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

• Fully 81% of the national debt was created by just these three Republican Presidents. http://www.dollarsandsense.org/archives/2010/0111orr.html

Flap Doodle 3 years, 5 months ago

How many times have you posted links to that same page, merrill? 200 times? 400 times?

weeslicket 3 years, 5 months ago

no, no snap. that's how many times you've responded to merril's links. silly boy.

George Lippencott 3 years, 5 months ago

Any wonder why we can not solve this problem is quite clearly reflected in this thread. Except for a few the partisian arguments flow like water (or maybe dollars).

Dick Sengpiehl 3 years, 5 months ago

When this guy writes a letter to the editor, it's usually not worth reading. Really a right wing, fundamentalist. Those of you who relish such rantings, enjoy.

rtwngr 3 years, 5 months ago

You're entitled to your opinion as is Mr. Burkhart.

notaubermime 3 years, 5 months ago

I really have no idea why the Republicans are refusing to raise the debt limit. They already signed off on the spending for this year. How can they not have known that the spending that they agreed to would go over the debt ceiling? Can they not add?

rtwngr 3 years, 4 months ago

The last election cycle, Mr. Obama had more friends on Wall Street than Mr. McCain. What the GOP is refusing to do is raise the debt limit without meaningful spending cuts. Plus, as Mr. Burkhart correctly points out, the congress needs to limit itself on spending.

jafs 3 years, 4 months ago

Except that Reid's plan cuts the deficit more than Boehner's.

notaubermime 3 years, 4 months ago

So why didn't they do that with the spending bills they passed?

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