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The Fiscal Cliff

Posted Jan 3, '13 at 1:54am

dragonball05

dragonball05

1,571 posts

I realize this hasn't been talked about for a week, but reading through, I just had one thought about something nichodemus said:

A reason why I support the steady decrease and cutting down of welfare. But not now, not in a time of crisis. According to the Department of Health and Human Services, in 2009 the TANF rolls were 31.2 percent white, 33.3 percent black, and 28.8 percent Hispanic. Yet the primary image of a 'welfare recipient' in most people's mind is a black or an immigrant.

The direct number of people here may be close, but the percentage of each ethnicity is different. The number of white people is much higher, so an equal number given by a percentage of a given total shows a lower percentage of the total of white people. Just a thought I had when reading it. I'm not necessarily agreeing with one person or another, just...playing the devil's advocate I suppose.

 

Posted Jan 3, '13 at 8:03am

nichodemus

nichodemus

11,843 posts

Knight

I don't think that really makes a difference.

 

Posted Jan 5, '13 at 6:27am

goumas13

goumas13

4,486 posts

A deal has been made. The Senate approved a bipartisan agreement  to let income taxes rise for the first time in two decades. The agreement mainly targets taxpayers who earn more than 450000 $ per year, raising their rates for wages and investment profits, while protecting more than 100 million households earning less than 250,000 $ a year from income tax increases scheduled to take effect January first.

 

Posted Jan 5, '13 at 6:32am

nichodemus

nichodemus

11,843 posts

Knight

That is good, but it doesn't target the root of the whole problem, one of which is spending beyond their means, an unsettling trend for the past 40 years.

 

Posted Jan 5, '13 at 7:03am

goumas13

goumas13

4,486 posts

The various US governments usually try to out-grow the deficit, especially the Republicans. The idea is that productivity improvements (and tax cuts) could feasibly generate sufficient economic growth to offset the deficit and debt challenges facing the Economy. Think of it like a Ponzi scheme.
The USA almost always uses expansionary macroeconomic policies, they're simply not big fans of recessionary policies.

 

Posted Jan 5, '13 at 7:16am

nichodemus

nichodemus

11,843 posts

Knight

Ha, I don't think so. The animal spirits aren't looking all too well. The US simply cannot compete in key areas of manufactoring after they lost they're comparative advantages. They've not innovated that much in the car, steel industries, they rely on high-tech products, yet there's only so many workers able to be absorbed.

 

Posted Jan 20, '13 at 7:50pm

Mickeyryn

Mickeyryn

244 posts

It appears there wasn't too bad of a "fiscal cliff".
This is still nuts though.

 

Posted Jan 21, '13 at 4:21am

nichodemus

nichodemus

11,843 posts

Knight

That's because you haven't actually averted the fiscal cliff? Lol.

 

Posted Jan 21, '13 at 5:25am

goumas13

goumas13

4,486 posts

That's because you haven't actually averted the fiscal cliff? Lol.

Now the Senate has to find an agreement to avoid hitting the debt ceiling. The fiscal cliff was simply postponed until mid-February, when the country is expected to exhaust the authority to borrow. Considering the fact that the Senate has not passed a budget in almost four years (the last budget passed was April 2009), there is still a possibility of a market-rattling default. This whole thing is not over yet.

Another solution that has been proposed to solve the debt ceiling crisis is minting a platinum trillion dollar coin, because of loophole in minting laws. There is a limit to how much money the U.S. is permitted to circulate in regards to paper money, as well as gold, silver and copper coins. However, under Title 31 of the United States Code, there is no limit to the amount of platinum coinage the U.S. Treasury makes. This way the Government could meet its spending obligations without having to ask Congress for the authority to borrow more money to do so.

 

Posted Jan 21, '13 at 8:05am

wolf1991

wolf1991

3,061 posts

Another solution that has been proposed to solve the debt ceiling crisis is minting a platinum trillion dollar coin, because of loophole in minting laws. There is a limit to how much money the U.S. is permitted to circulate in regards to paper money, as well as gold, silver and copper coins. However, under Title 31 of the United States Code, there is no limit to the amount of platinum coinage the U.S. Treasury makes. This way the Government could meet its spending obligations without having to ask Congress for the authority to borrow more money to do so.

Wouldn't this start a precedent though? And possibly lead to crazy inflation rates? I'm of course running this under the assumption this loophole is taken advantage of every time a situation like this were to arise.

 
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