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2008-12-06 Home Front: Politix

Bill Clinton: US must spend its way out of crisis

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Posted by Fred 2008-12-06 00:00|| || Front Page|| [2 views ] Top

#1 It's always worked for Bill. Especially when it's somebody elses money...

Posted by tu3031 2008-12-06 00:21|| 2008-12-06 00:21|| Front Page Top

#2 Yeah! Bring back inflation, that'll do the trick!

Posted by Cornsilk Blondie 2008-12-06 01:04|| 2008-12-06 01:04|| Front Page Top

#3 WRONG FOOL.

It is sink or swim.
Economic correction is very healty in the long term.

We have been "stimulating" a false economy for long enough. Do not fund economic bubbles - this is our lesson.

The more the economy does to route unstable business, the better we will be off in the next 20 years.
'
The more debt this government creates for us in their useless petty anty efforts, the longer we will feel the pain.

Posted by newc">newc 2008-12-06 02:00|| 2008-12-06 02:00|| Front Page Top

#4 Clinton said at a lecture organized by the Sekhar Foundation

Wonder how much he was paid for giving that lecture?

Posted by g(r)omgoru 2008-12-06 03:16|| 2008-12-06 03:16|| Front Page Top

#5 Bubba chaneling RBeez resident Mega-Kenesian, the estimable Mike N.

3 mil 50 tech?

Posted by .5MT 2008-12-06 05:32|| www.cybernations.net]">[www.cybernations.net] 2008-12-06 05:32|| Front Page Top

#6 He's like a bad penny, he just keeps turning up. Eight years of this clown and daily denials of a BJ obviously were not nearly enough.

Posted by Besoeker 2008-12-06 07:37|| 2008-12-06 07:37|| Front Page Top

#7 What I've been pointing out for a while now is that since WWII, the Democrats have relied on inflationary spending sprees, and the Republicans have relied on economic growth, as the *only* two means to support and balance the post-war "easy credit", leveraged economy.

But this cannot continue, because it created a debt bubble with no mechanism for reduction. This could have possibly lasted for many more years, if it was limited to just the US government.

But the fools allowed it to be used in unregulated and less regulated markets as well. This turned a bad chronic problem into a severe and acute problem, worse by more than a factor over even the US government's problem. Running into the hundreds of trillions of dollars of unsustainable debt.

There is no way of "fixing" things the way they are now, so the only possibility is to segregate the "real" economy from the leveraged economy, and let the leveraged economy completely collapse.

The leveraged economy cannot even be allowed to try and survive, it must be wiped out entirely, because until that happens, there is no possibility of restoring the real economy. If any parts of the leveraged economy survives, it will parasitically draw the liquidity out of the real economy like a malignant tumor, and destroy it as well.

The way to segregate the two economies is with regulated currency control. Virtual money is inextricably tied to the leveraged economy, so the real economy must rely on physical cash.

At the consumer level, there is only the fraction of the cash we need, so there is a severe cash deflation in the near term. However, at the "big money" level, the government will need to issue very high denomination bills that can only be transferred with Treasury Department permission. $100k to $10M bills.

Only real economy corporations will be provided these bills in exchange for their virtual funds, and they will guarantee both that these corporations cannot go bankrupt, and that they retain 100% collateral for any loans they need to operate.

This is a government backed real corporation insurance policy. Any virtual money beyond this limit the corporation earns or uses is up to it. But it cannot spend those bills, and they cannot be taken from them, except by Treasury permission.

The leverage economy corporations will go to any lengths to try and obtain these bills, but even if they take over a real company and loot is virtual liquidity, it cannot take and use these bills for its own purposes. Even if they buy the real company, the government just invalidates the bills, unless that company continues to perform its real economy function.

This real economy insurance will also make the restoration of American heavy industry very stable, as once a new corporation is accepted into the real economy group, its existence is assured far into the future, until eventually the high denomination bills are redeemed for good.

Posted by Anonymoose 2008-12-06 09:32|| 2008-12-06 09:32|| Front Page Top

#8 As much as I hate to admit it. Bill MIGHT be on to something here. I read an article about the Japan 10+ year recession and the conclusion is that the deficit spending is better in the long run then the alternative.

Can't find the link.

Posted by Hellfish 2008-12-06 12:46|| 2008-12-06 12:46|| Front Page Top

#9 Bill's just the guy to advise us.

No doubt he'd also advocate f*cking your way to virginity.

Posted by Lumpy Grolump7269 2008-12-06 13:51|| 2008-12-06 13:51|| Front Page Top

#10 No offense, Lumpy.....but how do you think new virgins are created? ;)

Posted by Cornsilk Blondie 2008-12-06 14:14|| 2008-12-06 14:14|| Front Page Top

#11 Sir Winston Churchill
"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

Government Spending is taxation.

Posted by Bright Pebbles 2008-12-06 16:04|| 2008-12-06 16:04|| Front Page Top

#12 Blondie,

I see your point about the supply of virgins.

But when it comes to Clinton, he'd only be working the demand side of the street. Tickle down economics.

Posted by Lump Grolump 7269 2008-12-06 16:49|| 2008-12-06 16:49|| Front Page Top

#13 More money chasing the same goods and services means the value of your money drops. Econ 101. We laugh at Zimbob 10 bil bills. We are following exactly the same path, collectively fools.

Posted by Alaska Paul 2008-12-06 17:07|| 2008-12-06 17:07|| Front Page Top

#14 It's worse than that.

Government borrowing crowds out private investment borrowing, therefore there are less goods created to use the money!

Posted by Bright Pebbles 2008-12-06 17:09|| 2008-12-06 17:09|| Front Page Top

#15 We laugh at Zimbob 10 bil bills. We are following exactly the same path, collectively fools.

Sadly, in more ways than just the economy.

Posted by Besoeker 2008-12-06 17:10|| 2008-12-06 17:10|| Front Page Top

#16 Bright Pebbles and Besoeker---I find this whole govt spending (or rather raiding the treasury) horribly depressing. The Congress has taken its middle finger and held it up right in front of the face of the American taxpayer, and said, "F*ck you. We do not care what you think and you cannot do anything about it."

Besides the enormous financial implications of this is the damage to the institutions of the United States by the contempt and lack of respect they have generated with the public. It is hard or impossible to get back. Just like tax evasion is a national sport in Italy, getting around the government will be a national sport here. Look at illegal immigration. Nice rule of law here. We will become a banana republic in mindset.

Posted by Alaska Paul 2008-12-06 17:18|| 2008-12-06 17:18|| Front Page Top

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