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Global Economy Bursting?

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Just a quick question / observation.
Wouldn't the US defaulting on its debt basically affect the credit ratings of other countries as well, if they hold substantial sums of US debt?
I look at this as the old saying
"$___ rolls down hill!"

Look out below!
 
The question is, why don't tax "cuts" generate jobs? The reason is that we have little control over the "job creators", especially big companies. Companies are moving their headquarters overseas due to tax reasons and increasing overseas operations. GE announced today that they are moving the headquarters of its X-Ray manufacturing division to Bejing, China. GE already did not pay ANY taxes in 2010, while at the same time advocating for more government spending and higher taxes. Ironic, isn't it. Numerous other companies have moved their management and headquarters to Switzerland, where the corporate tax rate is 15%. Wynn Gambling is moving its headquarters to Macau because it figures the bulk of its income will be from overseas gambling operations. Then add onerous federal regulations (Dodd-Frank, Gramm-Leach-Bliley, the EPA, NLRB, etc). Why would any multi-national expand operations in the US?
 
Tax policy for citizens don't matter because they really can't move overseas where the jobs are. Tax policies for small businesses do matter as they will either grow, stagnate, shrink or not even be formed.

What matters for taxes is that everyone has skin in the game. That means for the 40 or 50% (depending on who you believe) that don't pay any federal income tax should be taxed at a rate commensurate with income. Deductions should be eliminated.

Payroll taxes should be eliminated. It is a reason to make jobs that don't have employees (as defined by the IRS) or to transfer those jobs overseas.

Spending should be capped at a percentage of GDP. Wars need to be funded as should social programs, all from the general Treasury.

There should be no debt limit; abolish it. You voted to spend the money, the money has been spent.

But, none of the above will ever become reality. The plan is to default and let the market deal with it to force the issue.
 
Why would any multi-national (corporation) expand operations in the US?

R-Because no multi-national could exist or prosper without access to the largest and healthiest economy on earth, the good old US of A. They need us more than we need them, they should realize their synergistic co-dependence and pay their fair share happily, as I do mine.
 
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Just a quick question / observation.
Wouldn't the US defaulting on its debt basically affect the credit ratings of other countries as well, if they hold substantial sums of US debt?
I look at this as the old saying
"$___ rolls down hill!"

Look out below!

WK- Astute observation, our position in the hierarchy of the economies of the world would not change, just the "rating" assigned to us by the same companies who had no clue as to the impending financial crisis in 2008. Who's in charge of downgrading them? Wall Street, I guess.
 
The US is headed toward 3rd world status. It will be a good cheap place to live if you have your money invested elsewhere. I see this around the world every day via ham radio. Yesterday I heard a station in southern Chile with an English accent. I looked him up on the web and he lives at a beach resort 300 yards from the Pacific Ocean north of a large city in southern Chile. He lives in a strip of houses most with pools and beach access like a small compound for the retired and no shacks for miles around. I talk to people all the time in American compounds in Central America, the south Pacific Islands etc., all retired there because the living is cheap but of course your money has to be invested elsewhere. It sounds strange to hear a person calling from Spain with an English accent. It sounds just as strange to hear an American with a Russian accent when even the Russians speak better English than most Americans do and no accent. Citizens of the world you might say.
Most operators in Africa are either French or Dutch. I never remember talking with a black African in Africa. I remember from my Army days in the Far East that our entertainment people were from Australia, New Zealand and surrounding Islands. They are really neat people most Americans have never heard of. My point being, the US is not the only place on earth. America did not become a great nation because of its geographical location, it became great because of its freedom and the fact that the people were governable attributable to their Judeo-Christian World view with its emphasis on the supremacy of the individual and family as opposed to the state. In this world view we believed that God created the government to serve the people but now the statist who hold power have a different world view that says that nature evolved people to serve the government. When the world view shifted the American People became ungovernable thus our present situation-stalemate. The state just ran out of other people’s money. The money has a new venue.
I saw on the news yesterday that in 1995 white Americans has 7 times the wealth as black Americans. Today in 2011 white Americans have 20 times the wealth of black Americans and 18 times as much as Hispanics. The black lost their wealth in the housing debacle which was a creation of the state to help black America bridge the gap. They bridged it alright as the numbers show. Next year this time it will be many times worse. That is where the state world view gets you.
 
Bon Voyage

The US is headed toward 3rd world status. It will be a good cheap place to live if you have your money invested elsewhere. I see this around the world every day via ham radio. Yesterday I heard a station in southern Chile with an English accent. I looked him up on the web and he lives at a beach resort 300 yards from the Pacific Ocean north of a large city in southern Chile. He lives in a strip of houses most with pools and beach access like a small compound for the retired and no shacks for miles around. I talk to people all the time in American compounds in Central America, the south Pacific Islands etc., all retired there because the living is cheap but of course your money has to be invested elsewhere. It sounds strange to hear a person calling from Spain with an English accent. It sounds just as strange to hear an American with a Russian accent when even the Russians speak better English than most Americans do and no accent. Citizens of the world you might say.
Most operators in Africa are either French or Dutch. I never remember talking with a black African in Africa. I remember from my Army days in the Far East that our entertainment people were from Australia, New Zealand and surrounding Islands. They are really neat people most Americans have never heard of. My point being, the US is not the only place on earth. America did not become a great nation because of its geographical location, it became great because of its freedom and the fact that the people were governable attributable to their Judeo-Christian World view with its emphasis on the supremacy of the individual and family as opposed to the state. In this world view we believed that God created the government to serve the people but now the statist who hold power have a different world view that says that nature evolved people to serve the government. When the world view shifted the American People became ungovernable thus our present situation-stalemate. The state just ran out of other people’s money. The money has a new venue.
I saw on the news yesterday that in 1995 white Americans has 7 times the wealth as black Americans. Today in 2011 white Americans have 20 times the wealth of black Americans and 18 times as much as Hispanics. The black lost their wealth in the housing debacle which was a creation of the state to help black America bridge the gap. They bridged it alright as the numbers show. Next year this time it will be many times worse. That is where the state world view gets you.

A-When do you leave? I'll throw a party for you.

Where will you invest your money when you live off shore? Wall street I imagine.

And on the eighth day God created the US government but the people rebelled against their God and God became angry and the people were sore afraid and God left them to wander in the Wilderness for 40 years.

The peoples world view changed and they became ungovernable, thereby causing the Congress to be unable to agree on anything.

But lo they elected Barack Hussein Obama which caused much wailing and lamenting and gnashing of teeth and yea they rent their garments and wore sackcloth and ashes.

And despite the coming of this Black Messiah, the gap between rich and poor grew by tenfold cubits and those of the poor that once owned their hovels were once again made to pay rent to the overlords who grew fatter than the fatted calf himself.

Austin, you sir are a charlatan.
 
It really doesn't matter, does it?

There is no way to "balance" the budget with spending cuts and tax increases. The sum of both would have to equal 42% of the current spending and that won't and can't happen.

What can happen is tax increases now, promised spending cuts later. The effect? No balanced budget and increasing debt as far as the eye can see.

There is certainly a way to balance the budget, just not one that does not involve political suicide.
 
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