your analysis is very confused on a few aspects---the first being the difference between the deposit rate and policy rate (similar to the Fed Funds rate) and what that implies for monetary action. If you look at money creation as an endogenous function of central bank action through the increase or decrease of bank reserves and bank lending, then the ECB's zero percent deposit rate is in some ways more drastic than the Fed's ZIRP.
Is that article implying that funding for cancer research is only up 5% over the last 13 years (I find that hard to believe)? Or that the overall 5% cut will have a disproportionate impact on cancer research?
A liberal friend of mine said he is hoping for the sequester. When they lay off the natural park staff, the air traffic conrollers and others and businesses shut down it will teach some of the mindless government haters a lesson.
I kind of understand the thought process of wanting bad things to happen due to stupid legislation/policy in order to teach legislators (and the people that vote for them) a lesson. But it never really works. Nothing will be learned and they'll just go and start doing stupid **** again. Better to hope things can get worked out to avoid a bad outcome.
The thing about teaching the legislators a lesson is that bad things happening to the country is only step 1. They already know bad things will happen. They don't need to learn anything. They need to be punished. They need the pain of the nation be their own palpable pain. And the way you punish a legislator is voting him out of office. But, most people will shy away from blaming their own congressmen even while they blame Congress generally. This will all be for naught unless voters sack up and throw these people out of office. The next bunch might be equally incompetent, but maybe their self-preservation calculus will change, at least. And, it's not a time to assign blame and decide if this is a Democrat or a Republican problem -- it might be more one party's fault than the other, but having an out makes it too easy for voters to rationalize themselves into de facto inaction or work at cross-purposes with fellow voters. If you're an incumbent during this fiasco, you need to leave at the next election. I'd toss Obama onto the pile too, if term limits didn't do it for me. Throw the bums out. Of course, it won't actually happen. The electorate will get what it deserves.
Where's Obama tomorrow? Golfing with Tiger, or campaigning again? why doesn't the man roll up his sleeves and actually work? Show some leadership. Problem is, I don't think he's capable or competent to do so.
Northside, give it up. They're Republicans and libertarians if the kids have to suffer for tax cuts so be it. Quit trying to appeal to them on morality or cuts to kids. No siree it won't work.
Fantastic post, man. These peeps in Washington need to go. They use us as a tool to keep themselves in office living off the people they should be serving.
OMG! You're right. This is all the fault of anyone who is not a democrat. GTFO with this crap. I hope you wake up one day realizing your partisanship is part of what ails this nation. That goes for a number of others, too.
But, Sam, how can it really be true that the deficits are going down without the sequester or at least cutting medicaid for kids and impoverished seniors and that silly entitlement that all those silly entitled people paid taxes for, you know, social security. The WSJ and Rush and Fox never told us that. The deficit and the national debt are the major immediate problem and a threat to our whole way of life. It will make us into Greece asap, doncha know. We must face facts and be mature and embrace austerity. Do it quickly in a panic. No time to wait or think. Quick.
You will see a short term deficit reduction with the normalization of revenues (by % of GDP), provided there is no additional economic down turn. This will cause a spike that will rapidly decrease the deficit. However, the CBO projects that the new normalization of the tax rates will also permanently return us to revenue rates of 18.2% GDP. So after that initial spike, revenues will stagnate, and the deficit starts growing again. By 2023. we're back up to $1 trillion deficits. http://www.cbo.gov/publication/43907
Certainly true - and I don't think either party has suggested spending cuts are not necessary. Obama was the one that killed the idea of just deleting the sequester entirely, after all. But it's worth noting that a $1 trillion deficit with an $18 trillion economy is different than a $1 trillion deficit in a $13 trillion economy. The cost of that type of deficit at modern interest rates is far lower than anything we saw in the Reagan administration, for example.
My sister works for the Federal Bureau of Reclamation and has for 36 years. She will most likely be furloughed...this on top of the 3+ years of unemployment for her husband since the housing crash. But she's one of the lucky ones as there will also be people losing their jobs where she works. Think what you will of the politicians, but federal government employees are people paying bills and raising kids just like the rest of us. Sequestration, is a direct result of partisanship, a game both parties continue to play. Now our federal government is actively adding more problems instead of creating solutions. Throw every single incumbent politician out of office next election...Republican and Democrat. We the folks have to put an end to the do nothing government of pointing fingers the only way we can. Stop playing the partisanship game. I have far more in common with my fellow citizens here at clutchfans ... including liberals ... than I've ever had in common with George Bush or any other republican I've supported. I beg all of your to think about the blind support you show either party or any candidate. Are you getting the best these people can give you? Its not about Republicans vs. Democrats anymore. Its about the people vs. the dangerous do nothing government.
It's funny how it's almost always people who lean Republican that try to create this whole "both parties suck" argument.
