Monday, November 15, 2010

There is a hole in the economy

It gets me as to how folks can propound on the esoteric meaning of nothing in the world of economics. Especially here in America, were we hear how to solve problems with solutions that do neither have method nor definition. All reminds me of an Island song I would hear harry Belafonte sing when I was a child growing up, “There's a hole in the bucket dear Liza, dear Liza.” If ever was there a need of a song to be remixed, it should be this one and the word bucket should be replaced with economy.

What is their not to see? It seems that politicians, albeit not very good in math as most Americans, want to make this a complex issue and act as if the solutions are massive and difficult – for lack of a better phrase, as if we are talking about Calculus or differential equations. Unfortunately it is not that complex and really a function of basic, simple, remedial math – adding, subtracting, multiplying and dividing.

The simple truth is that the way we are going economically is unsustainable. We are borrowing as a nation more than one-third of what we spend. I mean, let me put it another way. We as a nation, the United States, are spending $3 for every $2 we are bringing in the form of GDP.

It is also infelicitous that our political leaders know this and don’t or won’t tell us or worse, they do not know or understand the rusticism of the situation at hand themselves. For if they did they would do something and stop pointing fingers at each other. If they do not, you can best believe that the global capital markets will do it for us and like at the G20, we will not be in a position to do anything about it. We see what has happened in London, with students marching against the conservative political leadership, or last year in Greece with protesters in the streets or even this year in France. Don’t sleep it can happen here also.

But what is more troubling and scary to me is that if the Government, regardless of political affiliation does not see on the horizon what I fear, and that is a collapse in the bond market. I mean if the US is a company, with a massive debt problem plus $12 trillion and counting, with all these nations like China holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities, and the feds drop $600 billion into circulation, the value of the dollar may drop.

If this happens then it would not surprise me if foreign governments no longer want long-term US debt and will dump all the bonds on the markets if interest rates rise from current lows. This is not as farfetched as one may think given what has just occurred in Ireland and soon maybe in Portugal.

Politicians, there is a hole in the bucket. We have a sovereign debt crisis and all yawl do is point fingers at each other. We see that neither the Bush Tax Cuts, nor Obama’s massive spending have not worked. Regardless, something needs to be done now before it is too late, and it must entail at looking at entire projects and not bits and pieces. For inaction, may take our jobless rate up like Greece while they are trying to tackle their deficit. Maybe we could learn something from the difficulty they face now trying to restore fiscal soundness to their economic policy – naw, that would be too simple, instead we pass the buck, a borrowed buck at that,.

13 comments:

網頁設計 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

離婚 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

抓姦 said...

I really enjoy reading your blog. I would like to invite you to visit my blog.

外遇 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

抓姦 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

偵探社 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

尋人 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

討債 said...

I really enjoy reading your blog. I would like to invite you to visit my blog.

討債 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

法律諮詢 said...

I am honored to wander your blog. Thousands of points can invite you to my blog to be exchanges. Thanks

Anonymous said...

[p]buying an extremely producer that will retailing price you a little bit away from your pocket in the beginning but in the accomplish for the morning will provide you with its worth all through many years to can be found without any loosing the originality and appearance, could possibly be the producer one should really go in for . You may also use other coffee beans too as some have creamy, smooth, wealthy or nutty flavors that differentiate them from other coffee variants . This kind of molding is very popular in each winter . There may be a sale on and the authentic website will be a safe place to buy from . air max bw classic There is certainly a higher desire of these kinds of boots in particular for the duration of the cold seasons that is mainly due to the fact they are created with substantial outstanding requirements . For this reason locating the optimal ugg boots connected with 2012 is very critical . Formerly a very long time, Australia's craftsmen are actually familiar with sew the beach in Nz sheepskin boots, however, might be the company-minded youthful guy getting a bold try to traditional products towards the united states . Online stores feature Uggs brand boots which have a similar style . They will keep your feet extremely warm and dry even in the coldest winter days.[/p][p]UGG BAILEY BUTTON boots let you love uggs
2012 year snow boots, such as UGG BAILEY BUTTON boots, wild leather rivet snow boots, snow boots in the wild pheasant feather, vintage Horn buckle classic snow boots, wool snow boots, the introduction of wild beaches, in international fashion circles cause a surprise, he States to trend up numerous early adopters buy . Made of the softest distressed full-grain leather and lined with genuine sheepskin, the Kensington has buckle hardware and a signature metal UGG logo on the heel . The Australia [url=http://www.uggbootssaleoutlett.co.uk]ugg boots sale[/url] Sheepskin boots come in leather and suede with ties and/or buckles . The UGG Australia children collection flaunts the identical model and comfort [url=http://www.uggbootssaleoutlett.co.uk]ugg boots outlet uk
[/url] provided inside the adult line . This helps account for [url=http://www.uggbootssaleoutlett.co.uk]ugg boots sale uk[/url] your value . Ideally the boots should be left to dry for twenty four hours, but if you [url=http://www.uggbootssaleoutlett.co.uk]ugg boots sale outlet[/url] are in a hurry and need to wear them, you can dry them with the help of a hairdryer, set at a medium setting . [url=http://www.uggbootssaleoutlett.co.uk]ugg boots sale clearance[/url] uggsbootsoutletforsale . It really is greater than a initial type resort.[/p]

oakleyses said...

instyler ionic styler, canada goose outlet, beats headphones, canada goose outlet, abercrombie and fitch, p90x workout, vans outlet, birkin bag, mac cosmetics, reebok shoes, wedding dresses, ugg outlet, soccer jerseys, soccer shoes, chi flat iron, longchamp, insanity workout, jimmy choo shoes, babyliss pro, roshe run, valentino shoes, nike huarache, nfl jerseys, north face jackets, herve leger, giuseppe zanotti, mont blanc pens, new balance outlet, north face outlet, celine handbags, canada goose outlet, hollister, rolex watches, mcm handbags, ugg soldes, ugg boots, marc jacobs outlet, uggs outlet, nike trainers, bottega veneta, canada goose, asics shoes, ugg, lululemon outlet, ferragamo shoes, ghd, uggs on sale

oakleyses said...

canada goose uk, coach outlet, hollister, swarovski jewelry, canada goose, canada goose pas cher, links of london uk, pandora charms, montre femme, karen millen, converse, moncler, moncler, moncler outlet, louis vuitton canada, uggs canada, ray ban, moncler, vans, louboutin, hollister canada, swarovski uk, timberland shoes, toms outlet, thomas sabo uk, juicy couture outlet, baseball bats, ugg, wedding dress, converse shoes, juicy couture outlet, pandora jewelry, canada goose, pandora uk, hollister clothing, supra shoes, ralph lauren, replica watches, moncler, nike air max, iphone 6 case, gucci, air max, oakley, parajumpers outlet, moncler, lancel, moncler