Sunday, January 3, 2010

On the Tea Party, the Debt Ceiling and Stealing from Children

Appearing on ABC's "This Week,"
Austan Goolsbee, the chairman of the Council of Economic Advisers,
laid out the fairly alarming implications
of the United States defaulting on its obligations while asking the question:
What type of insanity would persuade us to do this?

…the earth belongs to each of these generations during its course,
fully and in its own right.

The second generation receives it clear
of the debts and incumbrances of the first, the third of the second, and so on.

For if the first could charge it with a debt,
then the earth would belong to the dead and not to the living generation.

Then, no generation can contract debts greater than may be paid
during the course of its own existence.

Thomas Jefferson to James Madison, 1789

"Well, look, it pains me that we would even be talking about this," he told co-host Jake Tapper.

...the debt ceiling is not something to toy with.

If we hit the debt ceiling, that's essentially defaulting on our obligations,
which is totally unprecedented in American history.

Debt is the fatal disease of republics
the first thing and the mightiest to undermine governments
and corrupt the people.

Wendell Phillips
The impact on the economy would be catastrophic.

That would be a worse financial economic crisis than anything we saw in 2008."

How many American citizens
are aware of their country’s actual financial condition?

..."I don't see why anybody's talking about playing chicken with the debt ceiling.

If we get to the point where you've damaged the full faith and credit of the United States,
that would be the first default in history caused purely by insanity.

There would be no reason for us to default other than that would be some kind of game.

Does earn today, spend tomorrow,
conflict with borrow to spend today and hope to earn enough tomorrow,
or that someone else does?

We shouldn't even be discussing that.

People will get the wrong idea.

The United States is not in danger of default.

Debts are fun when you are acquiring them,
but none are fun when you set about retiring them.

Ogden Nash

We do not have problems with that.

The decline of great powers
is caused by simple economic over extension.

Paul Michael Kennedy
British historian, and author of “The Rise and Fall of the Great Powers”

This would be lumping us in with a series of countries throughout history
that i don't think we would want to be lumped in with."

Little by little, business is enlarged with easy money.

With the exhaustless reservoir
of the Government of the United States furnishing easy money,
the sales increase, the businesses enlarge, more new enterprises are started,
the spirit of optimism pervades the community.

Everyone is making money, everyone is growing rich.

It goes up and up…until finally someone whose judgment was bad,
someone whose capacity for business was small, breaks,
and as he falls he hits the next brick in the row, and then another
… and down comes the whole structure.

That is what happened to greater or less degree
before the panic of 1837, of 1857, of 1873, of 1893 and of 1907.

Elihu Root
US Senator, Nobel Laureate

...House GOP leadership does seem to see the deficit ceiling debate
a bit differently than their incoming Tea Party brethren
- as does the intellectual establishment of the Republican Party...

I place economy among the first and most important virtues
and public debt as the greatest of dangers to be feared.

…we must not let our rulers load us with perpetual debt.

Thomas Jefferson
...technically-speaking it is impossible for The United States to go bankrupt.

Bernanke can simply monetize every dollar of debt you issue.

What's also true is that every dollar he monetizes is a devaluation
of all of the currency and bonds that are held by everyone else.

Those who sell us things that we (foolishly) became dependent on
...have a habit of going up in price when we do this.

That increase in price of course causes even more capital to flow
beyond United States borders
while squeezing the American People even more
- for those who need to get to work the purchase of gasoline is hardly a luxury,
and in the winter the purchase of heating oil (really diesel fuel - same thing, distillate #2)
isn't one for those who use it either.


Bookmark and Share

No comments: