Today's Budget Deal Makes Another Crisis Inevitable - Mike Swanson (12/11/2013)


Today's budget deal to increase government spending over the next few years makes it now impossible for the Federal Reserve to eliminate its quantitative easing money printing operation.

It means that the Federal budget deficit is only going to grow and will eventually lead to another financial crisis in a few years.

This was our last chance for something to be done to stop the next crisis and instead of doing something responsible to get the nation's finances in order. The Congressional leadership sold out to the special interest groups that own them - and betrayed the American veteran in the process.

It's a vicious sell-out of all of us. And now all we can do is look after ourselves.

Comments

The House should cut their own pension and salary, not someone else's.

Hey Mike,

It is reprehensible for them to cut military pensions while keeping their own. Just like they shoved Obamacare down our throats, while exempting Obama, the congress and the congressional staff from it.

Spending must be brought under control. However, when you get down to the bare bones, the government has only two obligations to its citizens.

1. protect the people from internal criminals, hence the police
2. protect the country from external enemies, hence the army, navy, airforce, etc

Everything else, i.e. education, healthcare, welfare, economy, is NOT the responsibility of the government. The best that the government can do is not to try to influence these areas, rather, the best they can do is to stay away from them, so that people can figure out what needs to be done for themselves.

Once the government gets involved, things tend to get worse, not better over the long term.

The point at which I disagree with you is that I think it is a necessity to spend more money on the military. Freedom is not free. Ours is a world governed by the use of force. The best model of economic prosperity we ever had is the one offered by Ronald Reagan. I.e. cut taxes, give people more of their hard earned money, while at the same time rebuild the military (AND OF COURSE TAKE CARE OF THE VETERANS).

If Reagan cut taxes, but did not rebuild the military, the USSR and the communist empire would have still existed today.

This is not a zero-sum game. What I mean is that if we follow sound economic principals, the economy will rebound and we will have enough money for the military.

I, for once, am glad that the money is given to the defense contractors instead of giving it to the people who want to study the spotted owl or the caribou mating habits.

The reason you and I can trade and invest is precisely because the US military is guarding our freedom.

The reason you and I can trade and invest is precisely because the US military is guarding our freedom.

well, how do you explain that people in many other countries across the world can trade and invest? Seems like a fairly easy statement to refute

The reason the other counties do not spend as much as the US does on their militaries is because they can't afford it. Their economies will collapse. Case in point: when Reagan forced the USSR into an arms race, they ended up spending so much on their military complex that the entire country crumbled.

Also, during World War II, although the Russians are credited with bearing the brunt of the war as far as the human casualties, it was the USA that, due to the relative strength of our economy compare to theirs, supplied them with much of the weapons and ammunition.

Rather than spending their money on the military, the other counties either buy weapons from the US, or in the case of Russia and China, steal and copy military technology from the US. At the end of WWII some American bomers landed in USSR to refuel. Subsequently Stalin would not let those bombers to take off again, and the Russians built their own version of the bomber, which was strikingly similar to the American.

It is all but certain that the F-117, which was downed in Cosovo during the 1990's has probably been studied by the Russians (and maybe the Chinese), who instead of spending billions on their own research would rather copy the American design.

Even though people TRADE AND INVEST in other counties, such as Russia and China, they never know when the government will "knock" on their doors and confiscate their resources. How many investors and business people, who opposed the government ended up behind bars in Russia/Ukraine in the past 10 years?

People who whine and complain about military spending in US are essentially biting the hand that feeds them, or the hand that protects them, to be more precise. Only in the US (and probably a handful of other western countries) can people vehemently oppose the goverment in a peaceful way, while at the same time enjoying all of the freedoms afforded by our constitution.

Freedom is not simply an intellectual concept, which you and I can pontificate about and take for granted. It is an actual asset, which is defended by the US military. Russia and China for all their retoric, can not be trusted. Their objective is to start out by diminishing the influence of the US around the world. Their final goal is to bring down the US.

People in other countries have no idea what it's like to live in a society, where one is not being persecuted. If you remove the military from the equasion, you've gotten rid of the protector of freedom.

The concept of a government-run police force has no place in the origins of the American democratic republic. None whatsoever. Indeed, it was internal oppression in the colonies that led to our revolution in the first place.

I recommend that everyone watch the movie "The Gangs of New York" for some perspective.

At best, a local police force is a convenience for a local citizenry that has become too lazy and comfortable to provide for their own protection. I suppose the proverbial "town marshall" of the old west is a good idea as far as it goes. He is a useful mediator between the ordinary man and the justice system (i.e., courts, not cops).

But, left unsupervised, a police force -- which by definition is a monopoly on violence -- eventually grows more and more oppressive. And once the notion of internal policing has taken hold at the state level and above, it's just a matter of time before our freedoms vanish.

If I am wrong, please show me the historical documentation that cops are a legitimate governmental function.

W

Actually if you look at world history there were no police like we know it until a few hundred years ago.

Ancient Rome was the largest city of its age with several hundred thousand people in it and they had no police at all.

They had courts of law and judges though.

If you had a trial you had to show up to defend yourself.

If found guilty you would then have to engage in compensation or anyone had the right to carry out the sentence on behalf of the court... that was typical throughout the ancient world.... the most serious sentence was banishment from a city state, if people didn't leave they could be put to death by anyone...they would be rewarded by having a right to most of their property. In Rome they had a list of names up on one of the buildings of people who anyone could kill and take their property.

there were no jails or prisons...nor police.

There weren't firehouses either... some guy made a private business of running a fire house and had people set fires on buildings he would then go bailout... so no perfect world. He became one of the richest men in Rome and one of three big consuls along with Ceasar and Pompey.

I think that Sparky chap was named Pyro

It was Crassus - who may have been one of the top wealthiest people in all human history - they should have called him pyro though - lol:

"Some of Crassus' wealth was acquired conventionally, through traffic in slaves, production from silver mines, and speculative real estate purchases. Crassus tended to specialize in deals involving proscribed citizens and especially and notoriously purchasing during fires or structural collapse of buildings. When buildings were burning, Crassus and his purposely-trained crew would show up, and Crassus would offer to purchase the presumably doomed property and perhaps neighboring endangered properties from their owners for speculatively low sums; if the purchase offer was accepted, Crassus would then use his army of some 500 slaves which he purchased due to their knowledge of architecture and building to put the fire out, sometimes before too much damage had been done: otherwise Crassus would use his crews to rebuild. If his purchase offers were not accepted, then Crassus would not engage in firefighting. Crassus's slaves employed the Roman method of firefighting—destroying the burning building to curtail the spread of the flames.[7] Similar methods were used by Crassus in the common event of the collapse of the large Roman buildings known as insulae, which were notorious for their poor construction and unsafe conditions. Crassus was happy to cheaply construct new insulae using his slave labour force, in place of the old insulae which had collapsed and/or burned; however, he was known for his raising of rents rather than for his erection of improved residential structures."

http://en.wikipedia.org/wiki/Marcus_Licinius_Crassus

"he was known for his raising of rents rather than for his erection"

no doubt, sounds like he had something to prove, lol.

what a jerk face.

thanks for the correction.. I have an artist friend who made a painting of crassus, and I was misinformed of his name, he told me it wad pyro. Cool painting, despite the misinformation.

I'm not saying that we shouldn't spend anything on the military, but I believe we spend too much and most people have no idea how much we spend:


http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures
If you do not feel safe with this amount of more spending than every other nation in the world how much more would it take for you to feel safe?

IMHO - we are simply filled with fear propaganda on TV to make us scared enough to feel like we need to drain our pockets for the defense contractors and giant big government to protect us from what are not real dangers...

Let's put taxpayer's money to use here in America to help citizens and the economy. Wasting money on unnecessary wars and military is not helping our economy....it's only creating more government debt.

using the D. C. exchange. Just wanted to give the facts on that...

NMNJGRL=Gloria

http://thehill.com/blogs/healthwatch/health-reform-implementation/192820...

This article would indicate that it didn't./jimo


JOIN: WALLSTREETWINDOW FREE MEMBERSHIP

* Join and receive the Two Fold Formula guide to picking stocks and combine tested fundamental valuation metrics with technical analysis.

*Align yourself with the big trends of the stock market and be alerted when these trends change.

*Receive free updates when we see an investment opportunity in an emerging sector before the crowd gets in.

CLICK HERE: JOIN WALLSTREETWINDOW FOR FREE