Libertarian's Forum
Libertarian Forum to discuss politics and free market economics.
Libertarian's ForumLibertarian's ForumFreedom Forum › Deficit Spending, Debt & Printing
Page Index Toggle Pages: [1] 2 3 ... 5 Send TopicPrint
Very Hot Topic (More than 25 Replies) Deficit Spending, Debt & Printing (Read 551 times)
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 11881
Location: California Coast
Joined: Aug 18th, 2014
Deficit Spending, Debt & Printing
Aug 19th, 2019 at 12:26pm
Print Post  
Our government has an addiction:  buying stuff it can't afford, and falling deeper and deeper into debt.

The clinical term is called oniomania.

The Trump administration recently forecast a $1 trillion full-year shortfall.  That's a HUGE deficit.

So they will fire up the printing presses and print a Trillion dollars in currency and T Notes.

As the Treasury restores its cash balance with the coming supply, Saroliya expects liquidity woes to worsen, particularly in a scenario where long-term Treasury notes are yielding less than shorter-dated debt.

It will cause undue inflation, and exacerbate the inverted yield curve, and bring a recession that much closer.

https://www.marketwatch.com/story/the-us-treasury-is-about-to-flood-the-market-w...

There needs to be limitations on this kind of fiscal responsibility.   We need to have punishments for legislators who are unable (or unwilling) to meet a budget.
  
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 47951
Location: USA
Joined: Feb 26th, 2014
Re: Deficit Spending, Debt & Printing
Reply #1 - Aug 19th, 2019 at 1:54pm
Print Post  
SkyChief wrote on Aug 19th, 2019 at 12:26pm:
Our government has an addiction:  buying stuff it can't afford, and falling deeper and deeper into debt.

The clinical term is called oniomania.

The Trump administration recently forecast a $1 trillion full-year shortfall.  That's a HUGE deficit.

So they will fire up the printing presses and print a Trillion dollars in currency and T Notes.

As the Treasury restores its cash balance with the coming supply, Saroliya expects liquidity woes to worsen, particularly in a scenario where long-term Treasury notes are yielding less than shorter-dated debt.

It will cause undue inflation, and exacerbate the inverted yield curve, and bring a recession that much closer.

https://www.marketwatch.com/story/the-us-treasury-is-about-to-flood-the-market-w...

There needs to be limitations on this kind of fiscal responsibility.   We need to have punishments for legislators who are unable (or unwilling) to meet a budget.
First they have to be breaking a law that governs lawmakers. Such laws are found in the Constitution.

It could be problematic to forbid Congress from ever borrowing money...

How about if we just said that Congress shall have the power to coin money and keep it's value regular? Smiley

If we don't give Congress any power to permit a chosen chartered bank to print fiat money and pass legal tender laws for the fiat money, they won't be allowed to do it right?

Except they did it anyway, and all the people we could punish for doing it are dead anyway...
  

"Free hate speech"
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 11881
Location: California Coast
Joined: Aug 18th, 2014
Re: Deficit Spending, Debt & Printing
Reply #2 - Aug 19th, 2019 at 2:25pm
Print Post  
Jeff wrote on Aug 19th, 2019 at 1:54pm:
It could be problematic to forbid Congress from ever borrowing money...

How about if we put limitations on how much Congress can borrow?

Say, like cap borrowing at 10% of GDP.  That would make a lot of sense.

I think I'll write to my Representative and suggest it.    Nah, that's a waste of time.   My Representative is Maxine Waters.      I've already written a few letters to her, but I'm pretty sure Maxine has not read even ONE of them.   I think her staff screens my letters and deletes them.   Cry

If I DID write her a letter, it would read something like this:

Dear Congressman Waters,

  Government should not incur debt, which burdens future generations without their consent. We need to pass a “Balanced Budget Amendment” to the U.S. Constitution, provided that the budget is balanced exclusively by cutting expenditures, and not by raising taxes.

  Also, there needs to be some limitations on government borrowing.   A good place to start would be 10% of GDP during peacetime, and 50% of GDP during wartime.

Thanks for your consideration, 

SkyChief
  
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 47951
Location: USA
Joined: Feb 26th, 2014
Re: Deficit Spending, Debt & Printing
Reply #3 - Aug 19th, 2019 at 4:59pm
Print Post  
SkyChief wrote on Aug 19th, 2019 at 2:25pm:
How about if we put limitations on how much Congress can borrow?

Say, like cap borrowing at 10% of GDP.  That would make a lot of sense.

That will take a Constitutional amendment Chief. You know that.

It makes much more sense to use the Constitution we already have...

Basically all that needs to be done to make it vastly better is to strip off and toss out all the "progressive" interpretations of it since the New Deal.


  

"Free hate speech"
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 47951
Location: USA
Joined: Feb 26th, 2014
Re: Deficit Spending, Debt & Printing
Reply #4 - Aug 19th, 2019 at 5:01pm
Print Post  
SkyChief wrote on Aug 19th, 2019 at 2:25pm:
We need to pass a “Balanced Budget Amendment” to the U.S. Constitution, provided that the budget is balanced exclusively by cutting expenditures, and not by raising taxes.

  Also, there needs to be some limitations on government borrowing.
Limiting expenditures to Constitutional purposes would do it Chief. There would be no need to borrow at all unless WWII recurred, and I don't think we'll ever have a protracted war like that again.
  

"Free hate speech"
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 11881
Location: California Coast
Joined: Aug 18th, 2014
Re: Deficit Spending, Debt & Printing
Reply #5 - Aug 19th, 2019 at 5:20pm
Print Post  
Jeff wrote on Aug 19th, 2019 at 5:01pm:
Limiting expenditures to Constitutional purposes would do it Chief. There would be no need to borrow at all unless WWII recurred, and I don't think we'll ever have a protracted war like that again.

A "Balanced Budget Amendment" is not my idea.  In fact, most sates currently have some form of a Balanced Budget Amendment.   It works.

The US needs one at the Federal level.   It's really simple.

Congress hates the idea because they're a bunch of tax-n-spend oniomaniacs.  They don't want any limitations on borrowing or spending.

They are like a bunch of spoiled 4th graders running around the shopping mall with credit cards they stole from mommy and daddy.

If Congress insists on acting like children, they should be treated like children.
  
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 47951
Location: USA
Joined: Feb 26th, 2014
Re: Deficit Spending, Debt & Printing
Reply #6 - Aug 19th, 2019 at 5:22pm
Print Post  
SkyChief wrote on Aug 19th, 2019 at 5:20pm:
A "Balanced Budget Amendment" is not my idea.  In fact, most sates currently have some form of a Balanced Budget Amendment.   It works.

Right. Other than the fact that state revenues and expenditures both keep going up, and up, and up, and you can bet your bottom dollar it will take a lots of future taxing to keep those budgets balanced in the face of paying off pension obligations and bailing out failed "progressive" city governments...

What you see as "working" I see as a legalized subterfuge to keep raising taxes.
  

"Free hate speech"
Back to top
 
IP Logged
 
SkyChief
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 11881
Location: California Coast
Joined: Aug 18th, 2014
Re: Deficit Spending, Debt & Printing
Reply #7 - Aug 19th, 2019 at 8:04pm
Print Post  
Jeff wrote on Aug 19th, 2019 at 5:22pm:
Right. Other than the fact that state revenues and expenditures both keep going up, and up, and up, and you can bet your bottom dollar it will take a lots of future taxing to keep those budgets balanced in the face of paying off pension obligations and bailing out failed "progressive" city governments...

What you see as "working" I see as a legalized subterfuge to keep raising taxes.

Wow.  You're finally on board with tax cuts.

Someone take a picture!   Let's preserve this moment for prosperity.
  
Back to top
 
IP Logged
 
yamcha
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 1518
Location: Southern California
Joined: Jul 5th, 2019
Re: Deficit Spending, Debt & Printing
Reply #8 - Aug 19th, 2019 at 8:21pm
Print Post  
The government needs to sell off all the land that it owns besides the facilities that it functions on.  I think they own nearly half of America.  That would be a start!  They would get all the money they want for champagne and sex and we get our land back.  Laws should be changed so only citizens can own American land.  Take back our land first.
  
Back to top
 
IP Logged
 
Jeff
Libertarian Freedom Member
*****
Online

Libertarian's Forum

Posts: 47951
Location: USA
Joined: Feb 26th, 2014
Re: Deficit Spending, Debt & Printing
Reply #9 - Aug 20th, 2019 at 6:09am
Print Post  
SkyChief wrote on Aug 19th, 2019 at 8:04pm:
Wow.  You're finally on board with tax cuts.

Someone take a picture!   Let's preserve this moment for prosperity.
I'm on board with limiting all Direct taxes by the Constitutional rule of apportionment, and all Indirect taxes by the Constitutional rule of uniformity.

I'm also on board with limiting all expenditures to enumerated duties and powers.
  

"Free hate speech"
Back to top
 
IP Logged
 
Page Index Toggle Pages: [1] 2 3 ... 5
Send TopicPrint
 
Libertarian's ForumLibertarian's ForumFreedom Forum › Deficit Spending, Debt & Printing
Libertarian's Forum

Libertarian's Forum Information Rules, Agreement and Privacy Policy