Bernake advises that the US cut the deficit

[John Adams]

And recommends that the Obama debt commission REVISE THE TAX CODE?!?

 

Really Ben!? That's what you recommend? Any other ideas?

 

http://online.wsj.com/article/SB1000142405...eTabs%3Darticle

 

 

 

WASHINGTON—Federal Reserve Chairman Ben Bernanke said Tuesday the U.S. needs to soon come up with a plan to cut the budget deficit, urging President Barack Obama's debt commission to look at how the tax system can be changed.

 

Speaking to the bipartisan commission, Mr. Bernanke stressed that an economy is stronger when taxes aren't too high and are collected in an efficient, equitable and transparent way.

 

"At present, a broad consensus exists that the U.S. tax code does not satisfy these criteria and is in need of reform," Mr. Bernanke said in prepared remarks to the first meeting of the commission, which was hosted by Mr. Obama.

 

The WSJ commenters have a better understanding of the problem than the Fed Reserve Chairman.

[DC Tom]

And recommends that the Obama debt commission REVISE THE TAX CODE?!?

 

Really Ben!? That's what you recommend? Any other ideas?

 

http://online.wsj.com/article/SB1000142405...eTabs%3Darticle

 

 

 

 

 

The WSJ commenters have a better understanding of the problem than the Fed Reserve Chairman.

 

Can't read the article, as I won't register for WSJ. But I can't help wondering if those are two separate recommendations - cut the deficit, and revise the tax code - rather than one "cut the deficit by revising the tax code".

[John Adams]

Can't read the article, as I won't register for WSJ. But I can't help wondering if those are two separate recommendations - cut the deficit, and revise the tax code - rather than one "cut the deficit by revising the tax code".

 

Ben's response:

 

Mr. Bernanke said the U.S. will ultimately have to decide between raising taxes, cutting Social Security or Medicare, or spending less on everything from education to defense. Although he didn't make any specific recommendations, he signaled that changes to the tax system should be a priority.

 

No need to register. Between Magox, GG, and me, we post all the good stuff.

[DC Tom]

Ben's response:

 

 

 

No need to register. Between Magox, GG, and me, we post all the good stuff.

 

I don't necessarily disagree with that. I think cutting spending should be THE priority...but I've been suggesting for a while that simplifying the tax code (TRULY simplifying it, not euphemastically as most elected idiots suggest) would make for more economical and efficient tax collection and generate more usable funds.

[Magox]

And recommends that the Obama debt commission REVISE THE TAX CODE?!?

 

Really Ben!? That's what you recommend? Any other ideas?

 

http://online.wsj.com/article/SB1000142405...eTabs%3Darticle

 

 

 

 

 

The WSJ commenters have a better understanding of the problem than the Fed Reserve Chairman.

He pretty much went out on a limb there.

[keepthefaith]

And recommends that the Obama debt commission REVISE THE TAX CODE?!?

 

Really Ben!? That's what you recommend? Any other ideas?

 

http://online.wsj.com/article/SB1000142405...eTabs%3Darticle

 

 

 

 

 

The WSJ commenters have a better understanding of the problem than the Fed Reserve Chairman.

 

Obama needs public support for allowing the Bush cuts to expire on the upper earners while preserving those cuts for those at the middle and lower brackets.

 

Of course we have to be "fearful" that if we don't address the deficit through taxation, then education, SS, medicare and defense will have to be cut. Nothing else of course needs to be cut or should be cut.

[IDBillzFan]

According to this article in the Huffington Post, most of what we think we know about the deficit is based on myths.

 

Everyone is apparently overreacting. A couple of my favorites:

 

Myth #2: Fixing Social Security and Medicare will require "tough choices."

Reality: Social Security and Medicare are not facing a financial crisis.

 

Myth #3: We are passing on debt to our grandchildren.

Reality: Payments on Treasury securities are a matter of data entry, not a financial burden.

[Joe Miner]

According to this article in the Huffington Post, most of what we think we know about the deficit is based on myths.

 

Everyone is apparently overreacting. A couple of my favorites:

 

I think that article's basic point is:

 

Don't go to school at University of Missouri - Kansas City.

[GG]

According to this article in the Huffington Post, most of what we think we know about the deficit is based on myths.

 

Everyone is apparently overreacting. A couple of my favorites:

 

Ok, I figured nobody who would call themselves an economist would be that stupid, so let's pay somebody $0.02 to do a search.

 

Seems that Ms Kelton is a real person with reems of diplomas vouching for her standards. So what of the Greenspan quote? It appears in the classic way to quote only the "Yes" part of a "Yes/But" quote. Greenspan was referring to the fact that governments cannot technically default on obligations becaues they can simply print more money. But what Ms Kelton is misisng, is the BUT if a government does that without looking at its fiscal situation, it will create massive hyperinflation.

 

Using her analogy, Brazil or Argentina never experienced an economic shock because there were always more reals & pesos to be printed.

 

She's a smart one, alright.

 

btw, the gold nugget of Greenspan's speech she referred was ta the end:

 

Thus, governments, including central banks, have been given certain responsibilities related to their banking and financial systems that must be balanced. We have the responsibility to prevent major financial market disruptions through development and enforcement of prudent regulatory standards and, if necessary in rare circumstances, through direct intervention in market events. But we also have the responsibility to ensure that private sector institutions have the capacity to take prudent and appropriate risks, even though such risks will sometimes result in unanticipated bank losses or even bank failures.

[Celtic_soulja]

Bernake is a loser...

 

We need to cut welfare, education, and defense spending...we need to stop spending outrageous amounts of money on good for nothing departments...we need to raise taxes on the rich, and cut all taxes on the middle class...we need to reform this system completely...make it simple...

 

the ones that make it complicated never get congratulated...Kid Cudi

[John Adams]

Bernake is a loser...

 

We need to cut welfare, education, and defense spending...we need to stop spending outrageous amounts of money on good for nothing departments...we need to raise taxes on the rich, and cut all taxes on the middle class...we need to reform this system completely...make it simple...

 

the ones that make it complicated never get congratulated...Kid Cudi

 

The biggest part of the problem is that the government is so big that it's become a form of welfare, providing (useless) jobs to many people. Cutting a ton of spending = driving up unemployment significantly and paying for those people to do (more) nothing (than they do as gov't workers).

[Celtic_soulja]

The biggest part of the problem is that the government is so big that it's become a form of welfare, providing (useless) jobs to many people. Cutting a ton of spending = driving up unemployment significantly and paying for those people to do (more) nothing (than they do as gov't workers).

 

still...you don't always have to cut jobs to cut spending...though our ridiculous government have no real management skills...on education alone you could cut at least 20 percent in being more efficient without cutting 20 percent of the teachers on salary...but they are not business savvy enough to make those kinds of cuts...same with defense spending...if you spent less on technology you'd save 987093218745098347098347509138470598 exactly lol...there can be cuts in spending without cutting it alllllll out of salaries...they just needs some conservative leadership that knows what they are doing...you don't make cuts to a budget without telling these people where those cuts need to come from...

[The Big Cat]

The biggest part of the problem is that the government is so big that it's become a form of welfare, providing (useless) jobs to many people.

 

Does this include those employed to build and design (useless) weaponry?

[Alaska Darin]

Does this include those employed to build and design (useless) weaponry?

Why wouldn't it?

[DC Tom]

Does this include those employed to build and design (useless) weaponry?

 

In FY2007, Congress added five ships to the Navy's appropriations that the Navy themselves said that they not only didn't want and didn't need, but couldn't even operate since they didn't have the operational budget or crewmen for them. Congress did it do "create jobs".

 

So...yes.

[The Big Cat]

Why wouldn't it?

 

Believe it or not, AD, there are fiscal "conservatives" far less virtuous than you, the type that bemoan gummint spending but oppose cuts to the mother of all money pits, defense.

 

I'm sure we have these types lurking in our midst.

[Chef Jim]

Believe it or not, AD, there are fiscal "conservatives" far less virtuous than you, the type that bemoan gummint spending but oppose cuts to the mother of all money pits, defense.

 

I'm sure we have these types lurking in our midst.

 

I think most of us fiscal conservatives know the DOD is and has been the biggest government money pit for years.

[The Big Cat]

I think most of us fiscal conservatives know the DOD is and has been the biggest government money pit for years.

 

Then what happened? They grew tired of whining about it, and choose instead to whine about matters trivial by comparison?

[Chef Jim]

Then what happened? They grew tired of whining about it, and choose instead to whine about matters trivial by comparison?

 

I think true fiscal conservatives B word about goverment spending as a whole.

[The Big Cat]

I think true fiscal conservatives B word about goverment spending as a whole.

 

Ah, ambiguity you can believe in?