Mr Khan said:
HappySqurriel said:
Kasz216 said:
KungKras said:
Reading about american politics is always fun, because it is so different from europen politics. And opinions seem to be so polarized when you don't have a broad spectrum of parties to choose from.
I always found it funny that you guys keep using the term "left" when talking about the liberal party, even though you only have right (liberals) and far, far right (republicans). I know they're called left because they are the left wing of the availible political parties, but it's fun to imagine what say, a social democratic party would be called if one was ever formed xD
Does it even exist any other parties than the liberals and the republicans? I mean, there used to be a wiggs party before, right? Would the american system support more than two parties if more were ever to be formed? |
That's a weird statement considering the Euro debt crisis... and europe following through with what would be considered an "Ultra Conservative economics plan that could only be devised by someone from the Teaparty."
Austerity in europe right now is being held up as a proof that the stimulus was right, and that Europes right wing economic policies are why it hasn't recovered. (Ignoring of course, that at the same time, things were still going way downhill with the implentation of the stimulus... despite the fact that government spending is one of the metrics used to figure out the all important GDP.)
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I don't follow your logic ...
The European debt crisis is caused by governments facing the consequences of out of control deficit spending, how does this demonstrate that out of control deficit spending was the right course of action?
Realistically, all the stimulus did was change the timeline of the eventual default in the USA from sometime between 2020 and 2030 based on Bush's moronic economic policies and move it forward to 2015 to 2020 based on Obama's even worse economic policies.
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Now there's an interesting doomsday prediction that i haven't heard before. Have some backup on that?
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The debt-to-GDP ratio in the United States has already passed 100% in the United States and is increasing by about 10% per year, and there is no real effort to reduce the deficit to non-moronic levels by anyone in power. When the debt level will hit a point where investors will lose confidence in the United States’ ability to repay their debt and interest rates will begin to increase which will (likely) cause speculators to short government bonds accelerating the rate that interest rates increase.
This (of course) can not be managed by increasing taxes at that point because for every 1% interest rates increase tax revenues will have to increase between 4% and 10% to compensate, which leaves 3 options:
- Austerity
- Inflation
- Default
Austerity would require cutting government services to levels below third world levels to cover the interest on the debt, inflation would be disasterous to the poor and middle class, and defaulting would result in a worldwide economic collapse that would make the great depression look pleasant.
Of course, this could all be prevented ...
