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Post a Comment On: Steve Sailer: iSteve

"Somebody's not clear on the concept"

13 Comments -

1 – 13 of 13
Anonymous Anonymous said...

STIMULUS = DEBT

you can't solve the problem by applying a remedy that is the same as what caused the problem in the first place

the compound interest fractional reserve debt slave system has reached maximum indebtedness and now the only 'solution' is a reset

this cycle has played out many times before in history

read von mises: once you get to this point in the cycle there is no acceptable 'solution' there is only a playing out of the financial laws of thermodynamics

12/19/08, 4:04 AM

Anonymous Henry Canaday said...

In the early 1980s, the Reagan Administration diverted a part of the gasoline tax away from highway building to help limit the deficit, so the major media dutifully echoed the highway lobby's complaint about "crumbing infrastructure." In the 1990s, with deficits shrinking, the tax was restored to transportation spending under a Republican Congress, so the major media began to complain about "pork barrel spending."

12/19/08, 4:17 AM

Anonymous headache said...

2 points:
1) Funny you should mention mining. South Africa's only chance of becoming say 2nd world is to make use of the mining boom, er having made use of it pre-crisis. Anyway, the regime there managed to chase away hordes of investors even during the metals peak by insisting that blacks get a cut of everything. Investors of course knew what this meant and instead headed off to Chile, Canada and Oz.

2) Infrastructure spending does make sense in a well connected economy. I work for a large German contractor and bosses here are already speculating on which units will get more work and which will go dry. But I doubt it will get millions off the street. Maybe a few thousand at best. The start-up times are fairly long except for projects where the planning restrictions have been resolved. But then you can only get some money into the economy if the industry is rationalised and productive.

12/19/08, 4:18 AM

Anonymous headache said...

"the financial laws of
thermodynamics"

That's a good one. I learnt about thermodynamics, so where can I read about this new theory?

12/19/08, 4:25 AM

Anonymous Bild said...

Sure, there is good reason to wonder whether politicians in practice will spend money on Bridges to Nowhere as opposed to useful projects (see also, Amtrak and Japan).

But in principle, infrastructure enables the efficient movement of labor, capital, goods and services to market. What's wrong with that?

They doubted the value of canals and macadamized roads, too, back in the Whigs' day.

For background, let us refer to The Economist, that bastion of big-budget socialism:

Infrastructure in China

http://www.economist.com/world/asia/displaystory.cfm?story_id=10697210

in India
http://www.economist.com/specialreports/displaystory.cfm?story_id=12749787

in the U.S.
http://www.economist.com/world/unitedstates/displayStory.cfm?source=hptextfeature&story_id=11636517

http://www.economist.com/displayStory.cfm?story_id=12775494

and in Africa:
http://www.economist.com/displayStory.cfm?Story_ID=1487583

12/19/08, 6:46 AM

Blogger Average Joe said...

Someone should tell Obama that once you get into a hole through wasteful spending you should stop digging.

12/19/08, 8:40 AM

Blogger Evil Sandmich said...

The most obvious government policy to cut the trade deficit by selling more abroad is the for the government to cut back on environmental restrictions on mining.

Too true, we have plenty of hard assets if the greenies would let us get at them.

It will have to come down to that anyway when our Chinese debt masters come looking for payment. Future conversation:

Uncle Sam: How about some greenbacks, hot off the presses?
Chinese: nah.

Uncle Sam: Carbon Credits?
Chinese: Absolutely not.

Uncle Sam: A couple million barrels of oil and a fine assortment of some rare earth elements?
Chinese: Now we're talkin'!

12/19/08, 10:00 AM

Anonymous Piper said...

Mining? Why mining in particular?

If I had to guess, I would guess that the fastest way to boost exports would be to repeal US law making it a domestic crime to bribe a foreigner (regardless of accepted practice in the recipient's country).

12/19/08, 10:35 AM

Anonymous Anonymous said...

The policy to adopt, if USG is going to dispense money without limit, is at least get something for it in exchange.

The Feds could begin ordering massive numbers of new cars and light trucks to start replacing federal, state and local vehicle fleets.

Ditto for all kinds of construction equipment to replace aged and worn equipment inventories in DoD. Ditto again for semi-tractor trailers and other commercial trucks used by DoD for logistics operations.

12/19/08, 11:50 AM

Blogger Ronduck said...

The most obvious government policy to cut the trade deficit by selling more abroad is the for the government to cut back on environmental restrictions on mining

If either party cared about the trade deficit we wouldn't be in such a hole economically. If they had that kind of mentality they would be looking out for what's best for America, and probably fencing the southern border.

12/19/08, 12:37 PM

Anonymous jody said...

"The most obvious government policy to cut the trade deficit by selling more abroad is the for the government to cut back on environmental restrictions on mining."

1) minor typo there: "is the for the". not a big deal.

2) honest question. how is this the obvious federal policy? i'm not sure how this would significantly increase exports. exports of what? coal?

12/19/08, 2:14 PM

Blogger albertosaurus said...

The other night Jim Carey on Jay Leno's show grabbed his crotch and yelled, "Here's my stimulus package".

Pretty funny but all too true. Obama's team seem to be thinking with the little head not the big one.

12/19/08, 4:24 PM

Anonymous beowulf said...

The stimulus package as its being fashioned is going to be a trainwreck, EVERY city and county is coming up with their wish list of projects that haven't been worth funding already on their own merits. Check out the US Conference of Mayors tentative list--- their numbers are WAY low because they only surveyed a limited number of city and no county governments.
http://www.cnn.com/2008/POLITICS/12/18/mayors.pork/

A better way is a payroll tax holiday (whether FICA and income tax withholdings, or just FICA). $100 billion in income taxes and $67 billion of FICA taxes are withheld every month.

Instead of an $850 billion stimulus package that will take months to get rolling (with a lot of "bridge to nowhere" projects funded), just stop collecting FICA for all of 2009. Price tag is $800 billion.

A tax holiday could start immediately (no time lag as with tax rebate checks), doesn't require any lobbyists or new government bureuacracy and it can be phased out (or continued) depending on how the econonmy does. If the economy recovers next summer, its not like they're going to stop construction on a bridge that's only halfway to nowhere.

12/20/08, 2:09 AM

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