Should Obama ask for additional fiscal stimulus now?

[theeedude]

If Congress doesn't act to stimulate the economy fiscally, the Fed will, monetarily. It will result in a lot worse currency debasement than would happen otherwise.

 

[Lemon law]

Prices are lower, you are correct. That is called deflation, so this inflation talk is a pipe dream.

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Sadly the senseamp statement seems singularly stupid to me, as in an era where home prices are deflating, we have everything else inflating beyond all belief and explanation.

I can still recall the wondrous Nixon term of stagflation, and now we just need that new sugar coat term to explain why we are flushing down the toilet all over again.

When the answer is plain as the nose on our faces, as we allow the rich to grub all national wealth as they get to evade all US taxes.

But we should all remember the answer is trickle down economy. Somehow if we over fill the pockets of the rich, at some point, their pockets will fill to such an extent, that their pockets must rip from the resulting overload. And then free money will shower all over all our bodies again.

 

[Throckmorton]

It's a good thing that all of the stimulus money that went to banks is helping people get housing loans.

Wait...

Stimulus money didn't go to banks. 55% was spending, 35% was tax cuts.

 

[nick1985]

Sadly the senseamp statement seems singularly stupid to me

lol

 

[theeedude]

--------------------------------------------------------------------------------------]
Sadly the senseamp statement seems singularly stupid to me, as in an era where home prices are deflating, we have everything else inflating beyond all belief and explanation.

I can still recall the wondrous Nixon term of stagflation, and now we just need that new sugar coat term to explain why we are flushing down the toilet all over again.

When the answer is plain as the nose on our faces, as we allow the rich to grub all national wealth as they get to evade all US taxes.

But we should all remember the answer is trickle down economy. Somehow if we over fill the pockets of the rich, at some point, their pockets will fill to such an extent, that their pockets must rip from the resulting overload. And then free money will shower all over all our bodies again.

It's unfortunate but telling that statement that lower prices are deflation seems stupid to someone who is literate and has access to the internet to actually find out what deflation means.

 

[FuzzyBee]

Really? How then did banks get federal incentives for foreclosure loan modifications in the " Home Stimulus Package"?

 

[Hayabusa Rider]

It's unfortunate but telling that statement that lower prices are deflation seems stupid to someone who is literate and has access to the internet to actually fund out what deflation means.

Psst- Housing prices falling only benefit those who are buying. Wait aren't you one of those?

People are losing wealth who own homes, people are paying more for energy and that means that everything that is made or moved will have to go up.

But housing prices are going down so that makes it all better, and you are in the market.

Awesome.

 

[FuzzyBee]

Psst- Housing prices falling only benefit those who are buying. Wait aren't you one of those?

People are losing wealth who own homes, people are paying more for energy and that means that everything that is made or moved will have to go up.

But housing prices are going down so that makes it all better, and you are in the market.

Awesome.

I hope he doesn't need to rent a moving truck, because paying to fill up it's gas tank is going to be a bitch. Good thing the price of housing is going down.

 

[theeedude]

Psst- Housing prices falling only benefit those who are buying. Wait aren't you one of those?

People are losing wealth who own homes, people are paying more for energy and that means that everything that is made or moved will have to go up.

But housing prices are going down so that makes it all better, and you are in the market.

Awesome.

I wish for the best, which is why I am for new stimulus, but I invest based on reality. And the reality is that if GOP does not pass additional stimulus, home prices are going to move down more, more people are going to be out of work and forced to sell, and I'll wait for that to happen. The only thing that would force my hand is fear of inflation, but looks like GOP is on top of it, working hard to make sure we have a deflationary recession.

 

[sMiLeYz]

WHERES THE INFLATION?

 

[theeedude]

I hope he doesn't need to rent a moving truck, because paying to fill up it's gas tank is going to be a bitch. Good thing the price of housing is going down.

You can b!tch and moan about fuel prices. US economy contracting and more people being out of work is not going to help that, because those prices are now driven by foreign, not US demand.

 

[cubby1223]

I didn't say link the two.

Oh, I see

Use one to promote the other, just so long as it's presented in a way to make it seem like you're not doing what you want to be done.

I've not seen you ever be anything but a scheming political hack in this subforum. So, logically, you will always continue to be one no matter what anyone else thinks, says, or writes in response.

And with that, I say goodbye to this thread

 

[sMiLeYz]

Obama can ask for fiscal stimulus but I don't think hes going to get it. The political environment is pretty tough right now.

That said I completely agree with senseamp, fiscal stimulus is exactly what we need right now. Persistant unemployment would do long term damage to the economy, with no inflation in sight.

Unfortunately, the deficit is just a distraction for Republicans just like the Iraq War. If Republicans were really serious about taking care of the deficit, they would have let Bush tax cuts expire. The real problem is unemployment, just like the real threat has always been Osama and Al Qaeda.

After WWII, we were way more in debt than we are now (debt-to-GDP wise). But the stimulus of war spending, low unemployment and growth of GDP allowed us to grow out of debt. That's exactly what we need now. Note:* We don't need another war, just war-like stimulus spending.

 

[Zebo]

No offense but some people HAVE all the money it just did not just disappear like hedge fund manager who made 5 billion last year. Like with any economic system over time wealth gets in hands of few (Mathew effect) how we mollified that for years was with high progressive taxation, unionization, SBA and other efforts to redistribute wealth. Your plan and I guess Obama's does just the opposite since you have more dollars chasing same goods prices go up hurting those at bottom and does nothing to address the core problem. n fact he cuts taxes and seems on board with union busting with his silence.


Another thing it does is put you in debt to wealthy bondholders who are first paid even if it will mean taking your retirement/401k to do it.

Not to mention no services in future for taxes paid:
http://www.bloomberg.com/news/2011-...ies-to-stampede-republicans-on-debt-vote.html

The government can hit the limit and avoid a first-ever default because that can only occur if payments to bondholders are actually missed. And those obligations, the Republicans say, can be met with the tax revenue that will continue to pour into the Treasury, regardless of whether Congress raises the borrowing cap. All of the government’s other bills -- including those for defense contracting work, office supplies and highway maintenance, and to cover federal employees’ paychecks -- are secondary, they contend, and can be delayed or cut without panicking financial markets.

 

[ProfJohn]

There is already a huge stimulus taking place.

In 2008 the gov spent $2.9 trillion.

In 2011 the gov will spend $3.8 trillion. That is $900 billion worth of stimulus in just year more than double what Obama's 2009 stimulus spent per year.

In fact, since Obama won in 2008 we have exceeded the 2008 spending levels by $2 trillion. That is a HUGE amount of additional spending and what do we have to show for it?

If Obama really wanted to help the economy he would take drastic steps to lower gas prices so consumers would have more money to spend.

 

[drebo]

I personally think that additional stimulus would help get consumption numbers up enough to spur some hiring but politically it would be terrible right now.

That depends.

Giving money to megacorps, as has been the case with the last two stimulus programs, clearly did not help. Do you suggest a third done in the same fashion?

Or, perhaps, maybe you endorse economic stimulus in the form of tax breaks to tax-paying families? I know I would have appreciated a bit of a break in my taxes this year. It certainly would have enabled me to spend a bit of money this summer.

So, do you give money to the corps, as before, and expect it to trickle down; or do you give money to the people that need it and expect them to spend it?

For me, if the government were to follow the latter, and give back some money to tax-paying families, I would probably be in favor of stimulus. I am not, however, in favor of wasteful, overbudget, unneeded roadworks projects and corporate stimulus.

 

[theeedude]

There is already a huge stimulus taking place.

In 2008 the gov spent $2.9 trillion.

In 2011 the gov will spend $3.8 trillion. That is $900 billion worth of stimulus in just year more than double what Obama's 2009 stimulus spent per year.

In fact, since Obama won in 2008 we have exceeded the 2008 spending levels by $2 trillion. That is a HUGE amount of additional spending and what do we have to show for it?

If Obama really wanted to help the economy he would take drastic steps to lower gas prices so consumers would have more money to spend.

All that stimulus, or at least what was left of it after shoring up the financial system, is barely enough to keep our economy above water. And if it is allowed to expire before we have a solid recovery, the economy will sink. Obama can't lower gas prices, US consumers can, stop using so much gas.

 

[ProfJohn]

The best way to help the economy would be sending every one who paid taxes a $500 prepaid visa card. That way people wouldn't be able to save the money and would instead have to spend it. (Of course you could just offset the spending by saving, but most people would go out and spend that extra money)

You would have to come up with a way of getting the cards to people without creating huge amount of mail theft, but I am sure they could think of something.

 

[ProfJohn]

All that stimulus, or at least what was left of it after shoring up the financial system, is barely enough to keep our economy above water. And if it is allowed to expire before we have a solid recovery, the economy will sink. Obama can't lower gas prices, US consumers can, stop using so much gas.

That stimulus is not going to expire. The government always spends more year to year. There is virtually no way that we spend less in 2012 than we did in 2011.

The only thing that will expire, if it hasn't already, is the 2008 stimulus spending. But the other $900 billion in spending will go on forever. And ALL government spending is stimulus, whether it is called that or not.

 

[Infohawk]

Hack poster is a hack poster.

 

[theeedude]

The best way to help the economy would be sending every one who paid taxes a $500 prepaid visa card. That way people wouldn't be able to save the money and would instead have to spend it. (Of course you could just offset the spending by saving, but most people would go out and spend that extra money)

You would have to come up with a way of getting the cards to people without creating huge amount of mail theft, but I am sure they could think of something.

That is better than giving money to banks hoping they would lend, but not as good as direct government spending on infrastructure which would immediately employ people in the US, unlike a $500 prepaid business card which would employ people in China to make junk.

 

[Fear No Evil]

So how much more do we need and for how long? Another 2 trillion for 4 years? After that if we are still in trouble do we get to call it or do we need to increase it to 4 trillion a year? The beauty of liberalism.. you never have to admit failure. Its always just another couple trillion away.

 

[Fear No Evil]

That is better than giving money to banks hoping they would lend, but not as good as direct government spending on infrastructure which would immediately employ people in the US, unlike a $500 prepaid business card which would employ people in China to make junk.

We could build some choo-choo trains that nobody will ride!!!

 

[JSt0rm]

The best way to help the economy would be sending every one who paid taxes a $500 prepaid visa card. That way people wouldn't be able to save the money and would instead have to spend it. (Of course you could just offset the spending by saving, but most people would go out and spend that extra money)

You would have to come up with a way of getting the cards to people without creating huge amount of mail theft, but I am sure they could think of something.

Because it worked when bush did it.

 

[Jaskalas]

He got political capital from OBL killing. Economy needs new fiscal stimulus to avoid sliding back into recession. Austerity is turning into an self inflicted economic debacle in the UK.
Put the economic necessity and political opportunity together, and now is the time to get this done. If GOP wants to block it and take the blame, let them do it, but Obama needs to do what's right for America and get another stimulus passed.

So you've got this great government-run economy which does not survive without stimulus. Either you print money and destroy the currency along with food/gas/other prices or you let the free market take over and it'll struggle but eventually get back on its feet after the mess you've made doling out the fake wealth.

You keep coming back to us to place your bets on f'ing over the dollar. Thank you for showing how much you care about people who need food and gas. Those obviously aren't importaint, Wall-Street MUST be bailed out WHATEVER the cost!! SAVE THE RICH PEOPLE NOW!!!

Go to hell.