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A Remedial Lesson in Public Finance Economics for the GOP

Paulus Textor Wrote: Sep 08, 2012 12:05 PM
Mitchell is right. Technically speaking the federal government is "balanced" every year, in the sense that all the obligations are paid, either directly by taxation, indirectly through borrowing, or directly through monetizing (fancy Washington-speak for "printing up money"). What is important is cutting government SPENDING, which parenthetically WILL also reduce the debt.
olddog39 Wrote: Sep 08, 2012 12:17 PM
NO! Just stopping the spending will not reduce the debt! We have to reduce the principal in order to reduce the debt.We haven't paid ANYTHING on the principal in over 50 years. Plus we have all of the built in cost of living adjustments which the politicians call NON-Discretionary spending. Come on all spending is discretionary. Congress passes laws- that's their job. Undo the colas and you reduce the burden of the future.
Paulus Textor Wrote: Sep 08, 2012 12:24 PM
I agree.

1) Cut Spending.
2) Apply all surpluses gotten from cutting spending, to the principal.
or, see "repudiation", discussed above.

Everyone has a cross to bear in life, some sort of burden or obligation, often self-imposed.

For some inexplicable reason, I’ve decided that one of my responsibilities is to educate a backwards and primitive people who seem impervious to common sense, simple logic, and strong principles.

As you’ve probably guessed already, I’m talking about Republicans.

I’ve already identified them at the Stupid Party, but they seem especially ill-informed and clueless on the topic of government borrowing.

I’ve specifically warned that they are economically (and

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