Hey Rocky! Watch me pull a rabbit out of my hat.

Posted by: Barthélemy Barbancourt

Tagged in: taxes

Or in Tim Geithner's case maybe that should read "out of my ass?"

In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.

"We have the deepest and most liquid markets for risk-free assets in the world. We're committed to bring our fiscal deficits down over time to a sustainable level.

"We believe in a strong dollar ... and we're going to make sure that we repair and reform the financial system so that we sustain confidence," he said.

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting skepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.

Tim, you are quite the comedian. Obama plans to spend MORE money in 2009 and 2010, not less. The students were right to laugh as your comments can't be taken seriously. The USA has an estimated $1.8 trillion deficit for 2009 and that was calculated before the IRS reported that tax receipts were down 34% in April, typically the best month for the IRS.

Just how will Obama cut the deficit, create socialized medicine and get the economy back on its feet?  It can't be done with tax increases.

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Jeremy Archibald
...
written by Jeremy A , June 01, 2009

In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.

Right, he meant year seven of the the big "O" admin. You're a fool to think he meant today or next year.



Sequel
Nuthin up my sleeve
written by Sequel , June 01, 2009

Presto!
Massive stagflation.
Oops, I think he needs another hat.



TomC
All evidence to the contrary
written by TomC , June 01, 2009

There is no intention to do any of the thing mentioned by Obama or Geitner to control spending beyond the magic-show-type hand waving to distract the left-leaning cooperative media and "duh-masses" (say it quick) who are generally government-school "educated." Anyone who has seen the spending projections for the Obama administration and has an inkling of understanding of what they mean would concur.

A one year projection for the Obama administration deficit nearly equals all 8 years of the over-spending Bush administration. There long-term effects of this over spending is hard to imagine.

Some are projecting third-world type inflation, a devaluing of the dollar that will make our life-long saving and investments nearly worthless, making all more dependent on government.



Ben
I believe...
written by Ben , June 01, 2009

That when he was speaking to university students he told them that the US was "still a sound and safe investment" and they laughed at him.


Barthélemy Barbancourt
worthless savings?
written by Il Duce’ , June 01, 2009

I just had a discussion with a few people that alredy have worthless 401(k)'s. That task has been taken care of already. The hyperinflation will just wipe out what's left of the middle class and usher in a wave of support for more socialism.


0
Wow, I feel more secure than most
written by MoonliteSonata , June 01, 2009

In that I do not have anything at all to loose. I already live paycheck to paycheck, rent, have no bank accounts of any kind, and what "investments" I do have are in precious stones and metals in the form of jewelry.
I know how to garden, and Aunty knows how to hunt. We both can create things to barter with. We can manage, one way or another, even if things get really bad.



auntypsychotic
let's take this a step at a time
written by auntypsychotic , June 01, 2009

" We have the deepest and most liquid markets for risk-free assets in the world. "
Uh huh. And yet, nobody is taking advantage of them."

" We're committed to bring our fiscal deficits down over time to a sustainable level. "
Is this a no-brainer or do I just not get it? How 'bout we reduce then eliminate such deficits rather than trying to sustain them?

" We believe in a strong dollar ... "
So what? I believe in the Easter Beagle but I don't expect him to drop by the house next spring with a basket of goodies.

" ... we're going to make sure that we repair and reform the financial system so that we sustain confidence. "
"Confidence." Interesting choice of word and more appropo than usual since they have managed to create and sell the biggest ponzi scheme in the history of the world. I'd rather risk money playing three card monty.

" Chinese assets are very safe ... "
Yep, they are. In China. And France and Germany and ... and .......




auntypsychotic
"Wow, I feel more secure than most." Me too.
written by auntypsychotic , June 01, 2009

" I know how to garden, and Aunty knows how to hunt. We both can create things to barter with. We can manage, one way or another, even if things get really bad. "

Yep. We both know how to fish, can tell if a number of wild roots, berrie and plants are safe to eat (mmmm, oyster mushrooms). I can do some trapping and can figure out more. We know lots of isolated, relatively inaccessible but naturally bountiful areas to "jungle up" in and I can build a fairly cozy little shack to live in along with a nice selection of early warning systems and boobytraps. And, most importantly of all, neither one of us has any compunction about killing any feral (or just annoying) humans who may wander our way.



Nobody
Now, now, now
written by Nobody , June 02, 2009

Timmy-the-tax-cheat may be a goon of the first order, and the chi-coms may know it, but we'll be OK. No return to the wild.


0
Can you guarantee that?
written by MoonliteSonata , June 02, 2009

I'm not saying that society would devolve quite so far as a return to the wild, but I will not starve, nor will I be bleating at the door of government to feed and house me, unlike millions who have no idea on how to survive without the current system of commerce and government if things get as bad as they were in the 30s.


Nobody
No Devolution
written by Nobody , June 02, 2009

Commerce is the very thing that makes us unique as humans. No other animal does anything like it. It will not stop. In the '30's some just moved underground. Same as now. The power grid, water never stopped in the 30's (if you had water and power). In the 30's 1/3 of the country were farmers and suffered 4 El Nino droughts in a row. Today we irrigate. BUT guarantee? Nope.


Barthélemy Barbancourt
Excellent Question
written by Il Duce’ , June 02, 2009

I proposed this for townhall this week. We need to accurately define how bad things are likely to get. I also disagree with societal collapse. Globally there are a variety of failed states and governments that have running water, electricity and even garbage disposal. I don't think that the people of Iceland have seen many changes at all even though their country is broke. I'll shift this to a post for further discussion.


Ben
I second...
written by Ben , June 02, 2009

A townhall this week. Keegans 630 thursday?


auntypsychotic
...
written by auntypsychotic , June 03, 2009

"No return to the wild."
But nobody, I waaaaaaaaaaanna go back to the wild. Moon promised that she would set me free in my natural habitat but SHE LIED!

Seriously, I don't believe that it will get that bad (although I kind of wish it would just to wake people the hell up) for most people, us included. But I also think that most folks don't know how to "make do" with less. At least the last 3 generations have no idea how to live without power for a few hours let alone all the pricey little gadgets they have or even how to live without immediately getting the latest version because it's "better". It's the same with cars; once it's a year old or has a scratch they "have" to get a new one. When you've supported two people, living indoors, on $400.00 a month the word "luxury" takes on "new" and more accurate meaning.
And as much as I love Moon et al I miss living alone out in the boonies every day. Mostly the "boonie" part not the "alone" part. She couldn't scrape me off her boots with a K-bar or get rid of me with a pony nuke. Bet she wishes she could sometimes.




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