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2009-10-20 Home Front: Politix

Gregg: U.S. could be on path to a 'banana republic' situation

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Posted by Fred 2009-10-20 00:00|| || Front Page|| [4 views ] Top

#1 Sooner the government's borrowing power runs out, the sooner rational policies will have to be implemented.

Posted by ed 2009-10-20 01:13|| 2009-10-20 01:13|| Front Page Top

#2 "Standards of living will drop if we keep this up," Gregg also said.

....trains will no longer un on time. A gallon of gas will cost $7.00 or about the same as a cup of coffee. A 'temporary' 19.5% European style VAT will be levied to assist the poor. Essentially a 'banana republic' but with no bananas.

Posted by Besoeker 2009-10-20 04:51|| 2009-10-20 04:51|| Front Page Top

#3 No bananas and no gas either.

The standard of living was bound to take a fall when the easy credit eventually went away and labor markets completed their globalization. But what the administration and Congress are doing aren't the techniques required to make the fall less hard. If anything, they'll prolong the agony.

It remains to be seen whether or not this is on purpose or the result of ignorant hubris. These days I lean towards believing it's the former.

Posted by no mo uro 2009-10-20 06:00|| 2009-10-20 06:00|| Front Page Top

#4 Could?

Posted by Procopius2k 2009-10-20 07:47|| 2009-10-20 07:47|| Front Page Top

#5 When buyers stop showing up for treasury auctions, the printing will continue anyway. The Federal reserve will just hold the treasuries as collateral instead of selling them.

This leads to a debasement of the currency. When that can't go on any farther, you get venezuala, or maybe agentina.

There are several ways to stop the slide, but implementing costly government programs like national health care make the problem worse.

Posted by flash91 2009-10-20 13:38|| 2009-10-20 13:38|| Front Page Top

#6 Sooner the government's borrowing power runs out, the sooner rational policies will have to be implemented.

Historically speaking NO

Whenever the congress hits any "Spending Limit" they simply raise the limit.

You expect Congress to be fiscally responsible?

I want some of whatever you're smoking/drinking.

Posted by Redneck Jim 2009-10-20 13:49|| 2009-10-20 13:49|| Front Page Top

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