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| 29 Jul 2011 06:55 PM |
...this isn't that bad for them. If anything, it strengthens their case for the termination of statist economic intervention.
From: Northern Trust "What would be the immediate economic effect of a sudden balancing of the U.S. federal government budget? The $1.26 trillion decline in federal outlays would represent a negative demand shock to the U.S. economy. Some entities who were expecting payments from the federal government would be disappointed. These disappointed entities might have to cut back on some of their planned spending in order to be able to honor their payment commitments to others. Alternatively, these disappointed entities might have to increase their borrowing in order to honor their payment commitments. To the degree that this increased demand for credit was accommodated by banks and the Fed, then the full effect of negative demand shock on economic activity would be tempered. It is unlikely, however, given banks current inabilities to extend new credit, that much of the increased demand for credit emanating from the sudden and sharp contraction in federal spending would be accommodated through the banking system. The net result would be a sharp contraction in U.S. GDP."
tl;dr, not raising the debt limit will hurt the economy.
Read more here: http://www.northerntrust.com/pws/jsp/display2.jsp?XML=pages/nt/0601/1138283678319_6.xml&TYPE=interior&er=dgcDetail&c=primary/resource/1107/1311879012909_360.xml |
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| 29 Jul 2011 07:03 PM |
>you are showing your just like every other `communists` a wolf in sheep`s clothing. >would make sense you being a cross dresser and all.
Dude, what.
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| 29 Jul 2011 07:09 PM |
| I see it as the lesser of two evils. At least some freedom, however minimal that freedom may be, is retained with the free market. |
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| 29 Jul 2011 07:12 PM |
| Hmmph. If they hadn't promised that money to businesses initially we wouldn't be in this mess. |
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Zct13
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| Joined: 02 Oct 2010 |
| Total Posts: 361 |
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| 29 Jul 2011 07:13 PM |
Hmmph. If they hadn't promised that money to businesses initially we wouldn't be in this mess. _____________________________________
Captain hindsight is here to sav- I mean to justify doing absolutley nothing while being smug. |
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| 29 Jul 2011 07:16 PM |
>Hmmph. If they hadn't promised that money to businesses initially we wouldn't be in this mess.
I'm an ironic supporter of letting the capitalist system run its course. |
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| 29 Jul 2011 07:21 PM |
| I'm not exactly being captain hindsight. I would not have supported excessive spending 30 years ago whether or not I knew what was going on today. |
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