My early morning take is like my late evening take:
- It is too early for a real deal.
- The outcome of last evening's dueling speeches is painful for me as a citizen.
Regards — Cliff
Tuesday, July 26, 2011
Dueling Speeches
Law Professor Ann Althouse blogs on last evenings dueling speeches.
My early morning take is like my late evening take:
Regards — Cliff
My early morning take is like my late evening take:
Regards — Cliff
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Burnett's source says that Speaker of the House John Boehner's plan might result in a downgrade of the US economy by Standard and Poor’s, which could raise interest rates, while Senate Majority Leader Harry Reid’s plan could prevent a downgrade because the higher amount of cuts up front.
Damn those Liberal credit agencies!!..?
A new Pew Research poll finds 68% of Americans say that lawmakers should compromise on the debt ceiling debate, even it means striking a deal they disagree with. Just 23% say lawmakers who share their views should stand by their principles, even if that leads to default.
Breakdown: 81% of of Democrats and 69% of independents favor a compromise to avoid default, but Republicans are more divided: 53% favor a compromise, while 38% say lawmakers should stand by their principles even if it leads to a default.
Jack
I am following what you are saying. Let's go with the President's Plan.
Regards — Cliff
Let's go with my plan, eliminate the debt ceiling.
Ensure that the full faith and credit of the USA is provided at the time of the budget authorization.
Admission: It's not really my plan. I've just heard it around the intertubes.
The raising the debt ceiling at this point is only analogous to providing heroin to an addict in the midst of detox.
Moreover, raising the debt ceiling even more will hasten the downgrade of the US credit rating which will quickly exacerbate a world market already on life support. The US T bond market may survive only because we are less ugly than Europe or other market guarantors.
Please provide proof of this assertion: "raising the debt ceiling even more will hasten the downgrade of the US credit rating"
A balance of tax increases, defense industry cuts and entitlement reforms should do the trick.
Or is it all Henny Penny up in here?
The assertion comes from S&P among others. But then, their assertion is no more reliable or verifiable than yours (or Obama's et al) that raising taxes on the rich (whoever THEY are when the tax code is rewritten), cutting the guts out of Defense, and getting rid of all of us "entitlement strap hangers" will avert disaster.
I'll go with the "market experts" and their predictions.....it is after all how they have amassed their fortunes at the expense of the working man.....or so it goes.....
For starters, they must change the tax code so that Hedge Fund managers earning over $1B per year on other people's investments pay at the ordinary income tax rate - that they currently are able to report this as Capital Gains and get the 15% rate is despicable.
I am with Joe that the Hedge Fund managers should not be getting away with paying just 15% on massive exchanges of stock.
On the other hand, the whole tax code, inches thick, needs to be revised. And revised carefully. For instance, mortgage deductions may be something that should go, but if they go now it will knock home sales to the floor. Every loophole and every ruling means that someone has found a way to keep some money, money that boosts their standard of living. What are the consequences if part of that money disappears?
The other problem is that, as Rham Emanuel says, never waste a crisis. The reason it applies in this situation is that there will be no movement if there is not some sort of a crisis. The reason is that we lack a consensus on (1) what to do and (2) how much to do it. Thus, deals are cut.
And, we need a tax increase, but (1) will it help end the recession and (2) will it be accompanied by the reforms in entitlements and the reductions in the defense and other national security/foreign policy expenditures we need? My money is on it being like the Reagan tax increases—tax increases, but no spending changes. Am I wrong?
Regards — Cliff
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