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Recent Comments

usgoosht
Election coverage continues. :-) comment by usgoosht on Obamacare repeal jeopardizes mental health, addiction coverage Jan 8, 2017 9:37 PM [GMT]
usgoosht
Throw out the tax code, and have the fed fund the federal government directly. That frees up all the resources currently dedicated to taxes, and recovers seigniorage from the banks. comment by usgoosht on A Little Laffer Curve Reality Should Guide Republican Tax Reform Jan 8, 2017 9:32 PM [GMT]
usgoosht
The trouble with that idea is that every one quarter basis point hike in the fed rate adds about 50 billion dollars to the federal deficit, and thus the national debt. That's because we are living beyond our means, and any money to pay the extra interest on the national debt will have to come via new borrowing.

If interest rates were at a formerly not unreasonable level of 5 per cent, that would take a bite of 1 trillion out of the federal budget. Not possible, as that is approximately the level of military and social welfare spending combined.

So, it would put the US on a fast downward spiral to huge indebtedness. The only way out would be the hidden tax of inflation, since federal lawmakers just can't summon the wherewithal to balance the federal budget.

Alternatively, the US could follow the lead of Japan, and take back seigniorage from the banks, funding the federal government directly, and removing interest on the national debt from consideration.

This is problematic for the US, however, since unlike Japan, we have a negative balance of trade, and we balance it by issuing debt. If we had to instead directly issue money from the Fed, we would eventually end up in the situation that Zimbabwe ended up in.

So, to sum up, a rock and a hard place. comment by usgoosht on Fed should get on with its interest-rate tightening, global-economy experts Rajan and Rogoff tell MarketWatch Jan 8, 2017 9:27 PM [GMT]
usgoosht
Not much of a martyr, apparently. Like Mohammed, he would rather see others die for his beliefs. comment by usgoosht on German ISIS Member Who Denied Killing Is Charged in Murders Jan 3, 2017 9:44 PM [GMT]
usgoosht
That's Islam, [cult] religion of peace and tolerance.

Not hard to understand how the non-Muslim population of Pakistan has dropped from almost a quarter to low single digits since independence. comment by usgoosht on Pakistani activist fears he will be killed like his father over blasphemy Jan 3, 2017 9:42 PM [GMT]
usgoosht
Seems Hindus and Muslims have more in common than they thought. comment by usgoosht on Indian Official Blames Women’s Western Dress for Mass Molestation Jan 3, 2017 9:40 PM [GMT]
Roy Thomason
Hell, I agree with Trump on nukes, the only reason we haven't had a nuclear war is the M.A.D. policy. comment by Roy Thomason on Aides scramble to clarify Trump's abrupt tweet about nukes Dec 23, 2016 2:29 PM [GMT]
usgoosht
Just more peace and tolerance from the cult of Islam. comment by usgoosht on Explosion at central Indonesia church wounds several kids Nov 13, 2016 6:45 PM [GMT]
usgoosht
Another result of a group of people too stupid to use birth control. comment by usgoosht on More than 900 migrants rescued at sea within hours Nov 12, 2016 6:17 PM [GMT]
usgoosht
Were they integrated enough to renounce the cult of Islam? No? Then they are still Afghan. The cult of Islam is incompatible with western freedom, since it wants to subjugate the entire world to its 7th century dogma, and treat them as its slaves. comment by usgoosht on A Deported Afghan Boy Returns to a Land Nothing Like Home Nov 12, 2016 6:12 PM [GMT]

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