Would a US impasse really be that bad?

[Machjo]

Let's suppose the US government does not come to an agreement before deadline?

Honestly, now that I think about it, it might be a good thing, and here's why:

All of a sudden, Republicans wouldn't be so opposed to tax increases anymore, nor would Democrats be opposed to spending cuts. All of a sudden, there would no longer be any policial sacred cows, and all parties would be united on tax and axe!

Sure this would likely mean a sudden spike in taxes and a sudden chopping of spending in order to pay creditors, but that might be a good thing.

 

[Cliffy]

Then again, perhaps this is an engineered demolition. Perhaps the point of this pretending to not come to an agreement is designed to crash the currency so that the new NAU currency can be implemented. This present system is stupid and has long out lived is usefulness to those who control the economy.

 

[Machjo]

Then again, perhaps this is an engineered demolition. Perhaps the point of this pretending to not come to an agreement is designed to crash the currency so that the new NAU currency can be implemented. This present system is stupid and has long out lived is usefulness to those who control the economy.

An NAU currency would be an improvement, at least in principle. But what would be even better would be for a world currency, or at least possibly one currency shared between Canada, the US, and the EU.

 

[wulfie68]

Let's suppose the US government does not come to an agreement before deadline?

Honestly, now that I think about it, it might be a good thing, and here's why:

All of a sudden, Republicans wouldn't be so opposed to tax increases anymore, nor would Democrats be opposed to spending cuts. All of a sudden, there would no longer be any policial sacred cows, and all parties would be united on tax and axe!

Sure this would likely mean a sudden spike in taxes and a sudden chopping of spending in order to pay creditors, but that might be a good thing.

I don't see how you get from A to B in your logic. Just because they miss their deadline doesn't mean the idealogues on either side of the impasse are going to change their minds about anything: thats in defiance of human nature. At this point I think the best hope (outside some last minute sanity on both sides) is Obama invoking the US constitutional clauses that state that their debt shall be honored and to hell with the partisan hacks.

 

[Machjo]

I don't see how you get from A to B in your logic. Just because they miss their deadline doesn't mean the idealogues on either side of the impasse are going to change their minds about anything: thats in defiance of human nature. At this point I think the best hope (outside some last minute sanity on both sides) is Obama invoking the US constitutional clauses that state that their debt shall be honored and to hell with the partisan hacks.

I guess there is the alternative option of keeping taxes low and spending like drunken sailors, and just printing the money needed to pay off debt instead of borrowing it. Hello Weimar Republic!

 

[wulfie68]

No, thats not a viable alternative either, but your base assumption was that if they default, they will miraculously come to see that they need to take action. What has to happen, for ALL our sakes because all of us will feel it if the US does go over the brink, is that Republicans and Democrats forget their posturing and come up with a workable compromise.

I honestly blame Republicans for this more, especially when you look at statements by some of them where they come out and say that they do not want to work with this president... hello! Thats not an option: Congress HAS to work with him until someone else is elected. Period.

 

[damngrumpy]

Anything that interrupts the flow of money right now is not good. America needs to seriously raise
taxes and cut some spending immediately. Ronald Reagan is the father of the latest mess we
see across the boarder. His cut this, deregulate that, and provide a holiday from taxes to gain
favour with the people is coming home to roost. Ronnie didn't understand if you choke off the
infrastructure money then you pay in 2011 dollars now and the infrastructure is in sad shape.
The idea that we send all the factories to China cause its cheaper, and take no action is another
monumental mistake that the country is paying for.
If America defaults, you will see interest rates in double digits everywhere quickly, a downgrade
by lender will drive the debt and deficit into the red further and the confidence left in the economy
will falter. It is estimated since the Republican crazy season began people have lost almost a
trillion dollars in the markets. That is business investment money and retirement money. The Tea
Party is going to be very unpopular when the truth gets out.
If this goes too far we could see a recession like that of Japan that lasts about twenty years, or
worse it could touch off the second round of collapse that could produce a depression.
no they need a deal and get on with it.

 

[Chev]

From Wikipedia, in part… “The North American Currency Union is a theoretical economic and monetary union of three North American countries: Canada, the United States and Mexico.”
“Canadian Department of Finance strongly opposes the creation of a common currency with the United States, citing the loss of economic sovereignty. A North American common currency would undoubtedly mean for Canada the adoption of the U.S. dollar and U.S. monetary policy. Canada would have to give up its control of domestic inflation and interest rates. …Amongst the three potential participants, there is considerable difference in policy which would have to be reconciled…… creation of a unified currency is the sheer dominance of the United States in any such union. Debt is a factor affecting currency prices. ..the debt of the United States continues to increase, while the debt of the Canadian federal government is being reduced…..clear advantage for Canadians and it would not be reflected if the currencies were to merge. The importance of commodities also factors into….. A concern with any unified North American currency is the differing economic situations…”
Could someone please explain to me how this would be a good thing for Canada? I looked at a few different websites and I don’t see it.

 

[Cliffy]

From Wikipedia, in part… “The North American Currency Union is a theoretical economic and monetary union of three North American countries: Canada, the United States and Mexico.”
“Canadian Department of Finance strongly opposes the creation of a common currency with the United States, citing the loss of economic sovereignty. A North American common currency would undoubtedly mean for Canada the adoption of the U.S. dollar and U.S. monetary policy. Canada would have to give up its control of domestic inflation and interest rates. …Amongst the three potential participants, there is considerable difference in policy which would have to be reconciled…… creation of a unified currency is the sheer dominance of the United States in any such union. Debt is a factor affecting currency prices. ..the debt of the United States continues to increase, while the debt of the Canadian federal government is being reduced…..clear advantage for Canadians and it would not be reflected if the currencies were to merge. The importance of commodities also factors into….. A concern with any unified North American currency is the differing economic situations…”
Could someone please explain to me how this would be a good thing for Canada? I looked at a few different websites and I don’t see it.

I doubt there is an upside for Canada. Which makes me wonder why both the Liberals and Conservatives have been working on this NAU for so long.

 

[EagleSmack]

So... does anyone need a box of tissues this morning?

 

[Cliffy]

So... does anyone need a box of tissues this morning?

No, but a giant jar of Vaseline might come in handy for those who are heavily invested in the economy.

 

[JLM]

Anything that interrupts the flow of money right now is not good. America needs to seriously raise
taxes and cut some spending immediately.

You are half right, what they have to do is raise the number of people paying taxes! :smile:

 

[EagleSmack]

No, but a giant jar of Vaseline might come in handy for those who are heavily invested in the economy.

Would YOU like a tissue Cliffy?

You are half right, what they have to do is raise the number of people paying taxes! :smile:

Absolutely!

 

[SLM]

Anything that interrupts the flow of money right now is not good. America needs to seriously raise
taxes and cut some spending immediately.

You are half right, what they have to do is raise the number of people paying taxes! :smile:

That's just common sense.

If anyone is in debt (individual or a nation) two things need to be done to get out of that debt. Increase revenue and decrease spending. Irrespective of what porportion you assign to each approach, both need to happen.

 

[petros]

How do you increase revenue without spending?

 

[SLM]

How do you increase revenue without spending?

Seriously?

For an individual you get a second job, for a nation, you increase your taxation base, whether that means increasing the rate or eliminating tax cuts it amounts to pretty much the same thing.

 

[petros]

First you need somewhere to work. If there is 1/3 unemployment, 1/3 of you tax base is unemployed and not paying taxes.

 

[EagleSmack]

How do you increase revenue without spending?

I think he means raise taxes and/or cut subsidies. You don't need to spend to do that.

The US Govt NEEDS to cut cut cut! That includes the Defense Budget. I am not talking about cutting pay of the troops or cutting back on things they need to fight and survive. Start closing overseas bases, continue the drawdown of Iraq and Afghanistan... and stop this foolish NEW war in Libya.

Seriously?

For an individual you get a second job, for a nation, you increase your taxation base, whether that means increasing the rate or eliminating tax cuts it amounts to pretty much the same thing.

Hey I was right.

 

[petros]

and stop this foolish NEW war in Libya.

Hooray for good al Qaeda securing oil ports with Canadian air cover.

 

[SLM]

First you need somewhere to work. If there is 1/3 unemployment, 1/3 of you tax base is unemployed and not paying taxes.

Hey I never claimed it was an easy answer. Just a basic fundamental. If you're digging a hole and find yourself stuck in that hole, the first thing you've got to do is stop digging. To prevent being stuck in the hole again, you've got to refill the hole.

I think he means raise taxes and/or cut subsidies. You don't need to spend to do that.

She actually, but that's cool.

The US Govt NEEDS to cut cut cut! That includes the Defense Budget. I am not talking about cutting pay of the troops or cutting back on things they need to fight and survive. Start closing overseas bases, continue the drawdown of Iraq and Afghanistan... and stop this foolish NEW war in Libya.



Hey I was right.

You get a gold star!