Thursday, July 02, 2009

RE: Crash of '09? (Glenn Beck)

Michael, it is very easy to generate a boom when you have no taxes to speak of. All it creates is deficits. In Reagan’s case, the largest in history until now. We only pulled out in the Clinton era, not because of anything  Reagan did, or Bill Clinton did, or anyone who worked for him did, I never thought Clinton knew what he was doing, but because of the Tech Bubble, followed by the Bush housing bubble which shook off the 9/11 doldrums. Your view that Obama is a buffoon is wrongheaded, you just don’t like his solution ,which is to pick inflation over deflation. I think that the economy is so fundamentally fucked up that either one (or both if we get some stagflation) will be a disaster and I would not know how to handle it. I do think that you may get what you want though because (deflation), unlike you, I do not think that the economy is recovering. It appears to me that China’s economy is recovering some (durable goods orders up) and that may help, but I really think that no matter how we approach this, we are looking at a lost decade. It all goes back to the introduction of the revolving credit card in the early 1960s. It changed the psychology of the consumer to where they felt that they never had to save or wait for anything. That was followed by politicians who took that to a macroeconomic level to guarantee their own elections. Everyone is to blame.

 

From: Michael Klein [mailto:mklein@smith-robertson.com]
Sent: Wednesday, July 01, 2009 9:24 PM
To: Wade Porter
Subject: RE: Crash of '09? (Glenn Beck)

 

Well, you conveniently forget that the Reagan tax cuts generated the biggest economic boom since WW II, if not in US history. When Clinton was pres, this boom actually allowed him to have a budget surplus. They actually were predicting that we would pay off the national debt within a decade. Then came the tech bust and 9-11. We could survive Bush's screw-ups, but I don't know where this Obama crap will leave us. But hyper inflation seems more likely all the time. As the economy recovers (not due to the stimulus at all), consumers will start spending. With the competition for goods from consumer spending and the stimulus, hyper inflation is a virtual certainly. Obama is a buffoon who has no idea what he is doing.

 


From: Wade Porter [mailto:wwp@aaplaw.com]
Sent: Wednesday, July 01, 2009 3:50 PM
To: Michael Klein
Subject: RE: Crash of '09? (Glenn Beck)

Actually, if you are on gold standard you can’t pump enough money into the economy to prevent deflation. FDR did not act quickly enough or decisevily enough to pump money into the economy. It is true that if we want to live with deflation we ought not to print money. It’s a judgment call for each of us as to which will benefit us (individually) more. In my opinion, the problem is not so much the money being used now as the fact that it is added to forty years of runaway spending on both domestic and military programs. The problem started under FDR, reached its zenith under Reagan (where we kept spending but stopped taxing creating the highest deficits in our history and decided to forgo any regulation on moneychangers in New York). The last administration got talked into a drug program for social security completely out of whack with the country’s ability to pay and then launched not one but two wars because everyone knew that we were not spending enough over what we made. The current administration appears to be completely held captive by their political constituency which, if I understand Barney Frank’s “logic”, must be the most irresponsible individuals who ever were issued credit cards.

 

The thing that George Washington was most correct about was the fact that he felt that the forming of political parties in the country would lead us to ruination.

 

From: Michael Klein [mailto:mklein@smith-robertson.com]
Sent: Wednesday, July 01, 2009 3:37 PM
To: Wade Porter
Subject: RE: Crash of '09? (Glenn Beck)

 

You are correct about the gold standard. FDR knew he couldn't pay for all his programs if we were tied to a gold standard, so he got rid of that.

 


From: Wade Porter [mailto:wwp@aaplaw.com]
Sent: Wednesday, July 01, 2009 3:35 PM
To: Michael Klein
Subject: RE: Crash of '09? (Glenn Beck)

It is somewhat disingenuous because it does not compare apples to apples, i.e. gross national product 1929 vs. today vs. level of debt for each.  But putting that aside, it is , of course something to be terrorized about. Beck says that Jefferson felt that a national debt was immoral and yet Jefferson held scores of slaves, including at least  one he had a number of children by who then became his slaves also. I am not overly impressed with Thomas Jefferson’s definition of morality. He also died a pauper because he was never able to get out of the tremendous private debt he incurred by living beyond his means. At the time of his death they were organizing a lottery for him in a desperate attempt to keep his house. Beck is also incorrect about the gold standard, FDR took us off the gold standard in 1933. What Nixon did, as I recall (and I am quite ignorant on this subject) was let the dollar “float”.

 

From: Michael Klein [mailto:mklein@smith-robertson.com]
Sent: Wednesday, July 01, 2009 3:18 PM
Subject: FW: Crash of '09? (Glenn Beck)

 

 

 

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YOU REALLY HAVE TO TAKE 2 MINUTES TO WATCH THIS!!  IT IS SCARY!

 

This is a very good example of how the government (both parties) are ruining our nations economy. It is a really “need to watch”. It is a very good way of describing our economy as a nation.

 

 

 

 

 

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1 Comments:

Blogger Jannie Funster said...

There was such a bad word in here I havd to cover my ears for the rest of the post.

What does little Jannie think of all this economy talk? I do whole-heartedly believe that the revolving credt card nation is all to blame. We want too much and we want it NOW, and we have for along long time.

I thinks we need to not be taxing our business people so much so they can hire more fokes and we all be happy la-dee-da.

So that's what the Gold Standard is about. Very educational!

9:54 AM  

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