Blaming Tea Party for Downgrade?

#1
n_huffhines

n_huffhines

What's it gonna cost?
Joined
Mar 11, 2009
Messages
88,359
Likes
53,301
#1
To see how absurd it is to blame tea-party Republicans for the downgrading of America's debt, imagine this scenario: Rep. Ron Paul is speaker of the House, Sen. Rand Paul is majority leader, and Rep. Paul Ryan is president of the United States.

Does anyone doubt this trio would restore the U.S credit rating in a New York minute? Every sacred cow in the federal pasture, from food stamps to foreign aid, would be hanging in the meat locker.
Click to expand...

What if 3 Pauls led America?
 
#2
#2
Also, I don't think Ron Paul considers himself Tea Party, but this still is interesting.
 
#3
#3
might be nice for the deficit. the stock market would drop 50% though
 
#5
#5
08092011ram.jpg


nik0bama.jpg


pressud.jpg
 
#10
#10
Rasputin_Vol said:
Explain why. I really would like to be educated on this.
Click to expand...

i assume ron will want the fed closed and the US on the gold standard. i can't even imagine how negative the market would take the loss of trillions in liquidity. 50% might be conservative.
 
#11
#11
droski said:
i assume ron will want the fed closed and the US on the gold standard. i can't even imagine how negative the market would take the loss of trillions in liquidity. 50% might be conservative.
Click to expand...

not to mention the fact that a return to a gold standard would mean a return to private ownership of gold being illegal
 
#12
#12
droski said:
i assume ron will want the fed closed and the US on the gold standard. i can't even imagine how negative the market would take the loss of trillions in liquidity. 50% might be conservative.
Click to expand...

no doubt
 
#14
#14
droski said:
i assume ron will want the fed closed and the US on the gold standard. i can't even imagine how negative the market would take the loss of trillions in liquidity. 50% might be conservative.
Click to expand...

What do we have right now? If our currency isn't backed by gold or any other commodity, then what is the FED using to determine when to raise or lower rates on borrowing? Are they just creating dollars out of thin air or is it actually backed by something tangible?
 
#16
#16
Rasputin_Vol said:
What do we have right now? If our currency isn't backed by gold or any other commodity, then what is the FED using to determine when to raise or lower rates on borrowing? Are they just creating dollars out of thin air or is it actually backed by something tangible?
Click to expand...

full faith and credit of the United States
 
#17
#17
MG1968 said:
full faith and credit of the United States
Click to expand...

Is that your final answer or are you being facetious? Because that answer is what I've gotten on at least 3 occasions by UT business professors and a retired manager from DuPont that I know pretty well.
 
#18
#18
Rasputin_Vol said:
Is that your final answer or are you being facetious? Because that answer is what I've gotten on at least 3 occasions by UT business professors and a retired manager from DuPont that I know pretty well.
Click to expand...

as far as I know, it's the only answer

US currency is not backed by any tangible asset
 
#19
#19
MG1968 said:
as far as I know, it's the only answer

US currency is not backed by any tangible asset
Click to expand...

So when the Fed lowers rates, it is essentially that it is lowering the rates that banks borrow from each other, is that correct?
 
#20
#20
Rasputin_Vol said:
So when the Fed lowers rates, it is essentially that it is lowering the rates that banks borrow from each other, is that correct?
Click to expand...

I'm the wrong person to ask that question, but I believe that's the case.

low interest rates are supposed to make borrowing and lending easier, but thanks to Dodd-Frank and a host of other financial regulations brought on by the mortgage bubble, banks are reluctant to loan to anybody because they are terrified of taking risks.
 
#21
#21
Where do the banks get their money to lend? If banks are able to loan money each other, the assumption is that some banks have enough liquidity/cash right now to jump start the economy?

What am I missing so far?
 
#22
#22
Rasputin_Vol said:
Where do the banks get their money to lend? If banks are able to loan money each other, the assumption is that some banks have enough liquidity/cash right now to jump start the economy?

What am I missing so far?
Click to expand...

banks use depositor money to make loans
 
#23
#23
Rasputin_Vol said:
Explain why. I really would like to be educated on this.
Click to expand...

The economy would have to transition from one dependent on gov't purchases and consumption back to private investment. The first couple of years would be pretty rough but coming out the end would be a rocket ship.

If it happened... we would have a severe labor shortage and labor inflation (market caused). We wouldn't be trying to close the borders... we'd be sending Greyhounds to pick up anyone willing to come.
 
#25
#25
Rasputin are dollar is built on crap right now.

We switched to petro dollars and away from gold and because of this all oil must be bought in us dollars. This made our currency the top currency and it is why other countries hold onto our currency.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top