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Not to worry……

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Oba mama will out do Clinton in pandering. Expect to hear “we have to pay for this” a lot over the next couple of years. Of course it’s nonsense but it keeps you elected. Any economist will tell you the U.S. can spend and borrow pretty much whatever it wants and sell bonds to pay for it.

We just have to pay it back and suffer the inflationary boom caused by flooding the world with dollar bills which eventually have to come home somehow. of course, this will take  awhile.

I think the so called budget balancing by Clinton set up the bust starting in 2001 after Reaganomics ran out of steam. Cutting interest rate and cranking up the printing presses lead to the re inflating the boom and of  course leading to the bigger bust today.

Next boom in being put place because of “quantitive easing” will lead to a bigger bust in 5 or 10 years. Pouring trillions of borrowed money into the economy will be the reason as consumers pay off debt and clean up their credit. We have to remember that our whole world economy revolves around people buying with borrowed money and earning more each year. Right now we are broke and earning less so we have a sluggish economy for awhile. But this will cease eventually and then  let the good times roll. Until 60 million or so leave the consumer scene collecting Social Security checks then all bets are off.

The only hard part is waiting for this to happen. ( For now a good sign is when the big boys start buying up their competition and that’s starting now). But it will happen!

What do you think?

Inherited from Whom? – Article – National Review Online

The last time the federal government had a budget surplus, Bill Clinton was president, so it was called “the Clinton surplus.” But Republicans controlled the House of Representatives, where all spending bills originate, for the first time in 40 years. It was also the first budget surplus in more than a quarter of a century.

The only direct power that any president has that can affect deficits and surpluses is the power to veto spending bills. President Bush did not veto enough spending bills, but Senator Obama and his fellow Democrats in control of Congress were the ones who passed the spending bills.

Today, with Barack Obama in the White House, allied with Harry Reid and Nancy Pelosi in charge in Congress, the national debt is a bigger fraction of the annual national output than it has been in more than half a century.

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Written by mrcauser

September 14, 2010 at 5:41 pm

Posted in Uncategorized

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