Op-ed:
Economic Prosperity v. War
By: Diane Sori / The Patriot Factor / Right Side Patriots on American Political Radio
In my Right Side Patriots partner Craig Andresen's previous
article, One Man Alone is Jordan's Future,
he made the case for King Abdullah’s days in power being numbered
and that change will come to Jordan and the Middle East...a change
for the better...a change where stability and democracy will end the
decades long politically manufactured Palestinian conflict.
And Craig is right for history itself dictates that hatred and
animosity between peoples can only go on for so long before it either
naturally burns itself out or all-out war ignites the flames of
possible annihilation. And while the entirety of the Middle East does
remain the pyre upon which said war will most probably be
ignited...sometimes war is the best of all options for in time war
births peace and peace in turn more times than not births prosperity.
And it's prosperity or should I say the lack thereof that is the
key component of why today's Middle East is such a mess for one tiny
nation alone is the epitome of the proverbial success story...a
nation rising strong and powerful upon the backs of six million
dead... while the others continue to wallow in both class warfare and
abject poverty...no middle ground allowed...where religious
fanaticism trumps any semblance of common sense... where religious
fanaticism by its very nature actually forbids any economic success...
Read entire article here: https://thepatriotfactor.blogspot.com/2019/05/op-ed-economic-prosperity-v.html
Showing posts with label economics 101. Show all posts
Showing posts with label economics 101. Show all posts
Tuesday, May 21, 2019
Labels:
Arab markets,
BDS,
economic prosperity,
economics 101,
Gaza,
Iran,
Israel,
Jordan,
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peace,
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Monday, May 20, 2019
Op-ed:
Economic Prosperity v. War
By: Diane Sori / The Patriot Factor / Right Side Patriots on American Political Radio
In my Right Side Patriots partner Craig Andresen's previous article, One Man Alone is Jordan's Future he made the case for King Abdullah’s days in power being numbered and that change will come to Jordan and the Middle East...a change for the better...a change where stability and democracy will end the decades long politically manufactured Palestinian conflict.
And Craig is right for history itself dictates that hatred and animosity between peoples can only go on for so long before it either naturally burns itself out or all-out war ignites the flames of possible annihilation. And while the entirety of the Middle East does remain the pyre upon which said war will most probably be ignited...sometimes war is the best of all options for in time war births peace and peace in turn more times than not births prosperity.
And it's prosperity or should I say the lack thereof that is the key component of why today's Middle East is such a mess for one tiny nation alone is the epitome of the proverbial success story...a nation rising strong and powerful upon the backs of six million dead... while the others continue to wallow in both class warfare and abject poverty...no middle ground allowed...where religious fanaticism trumps any semblance of common sense... where religious fanaticism by its very nature actually forbids any economic success.
And it's that one tiny nation whose steely determination to succeed helped drive its economic engine forward for that one tiny nation's people knew that with economic success all other successes naturally fall into place. And they have...as the Jewish State of Israel is not only an economic success story but a military one as well...for it's Israel who is now the lead tile in a dangerous game of dominoes where only through lasting peace will the other dominoes comprising the Middle East be able to stand instead of toppling over one after another leaving Israel as the last tile standing...the victor in a war that reality dictates only Israel could win.
But war does not have to be the final outcome as peace can actually be attained through economics alone if only certain Arab leaders would realize that both the old and the new hatreds do not serve them, their countries, or their people well. In fact, the continuation of the status quo...including the continuation of the Palestinian conflict itself...will directly lead to worsening economic conditions within the Arab Middle East while Israel's economy alone will continue to grow. And no amount of Arab oil can lessen the burden the people of those countries carry nor can oil be those countries sole economic driver.
And
while some Arab leaders are now working to forge lasting economic
ties with Israel...Saudi Arabia's and Egypt's leaders are two such key
persons...real regional threats from the
leaders of Syria and most especially Iran remain. And while the so-called
Palestinians are indeed, at least on the surface, the main obstacle
to peace, that obstacle is courtesy of the ongoing political posturing
by Jordan's King Abdullah who works under the radar against bringing
both stability and economic reform to the region. And why...because
Abdullah is a Muslim Brotherhood operative and a man who is allowing
Turkey's islamic government under Recip Erdogen's leadership to make
inroads into Jordan. But most importantly, Abdullah is smart enough to
know that if the seeds of capitalistic-style economic growth are
planted within his country and spread outward from there the
Jordanian people themselves will no longer need nor want him in power
thus signaling the end of both his personal reign and the Muslim
Brotherhood's regional reign as well.
Now enter center stage Jordan's and the Middle East's sole chance for a real future, and it's via Craig and my friend Jordanian Opposition Coalition leader Mudar Zahran and his proposal of a secular government for Jordan. Mudar understands well that for stability to be brought to the region the Palestinians must be welcomed home to Jordan, their true ancestral homeland. And Mudar also knows that Israel will help him rebuild his country's economy...an economy patterned in a way after Israel...the key to all Middle East economic success...that is once the Palestinian conflict is put to rest.
And while ending said conflict will surely afford important
economic opportunities for both Jordan and the Arab countries in
general, in turn it will also allow Israel to grow economically even
stronger than she already is...thereby assuring she remains the region's
economic leader. How so...currently there are over 350 million Arab
“consumers” in the Middle East and North Africa who are
"off-limits" to Israeli exporters, goods, and services, but once peace
is achieved and lasting economic ties are forged Israeli companies
will then gain even more outlets for their goods and services...more
outlets equating to more economic growth...more economic growth
equating to more generalized success overall.
And dare we forget that once the Arab countries start openly importing Israeli goods the BDS sanctions movement against Israeli businesses and goods becomes but a mute point with Europe then falling in line with its reopening trade with Israel. And why...because by doing so it will aid Europe's economies as well...economies now struggling to support the very muslim invaders who have both physically overrun their lands as well placed a great burden on them dollars...or should I say Euros...wise. Remember, Europe is now feeding, clothing, housing, etc., the very folks who wish them all dead...and they're doing so at the great expense of their own people and their economic well being.
Now as for the so-called Palestinians specifically...peace with Israel will definitely bring much needed economic benefits for both the people and a government on the verge of economic collapse, because right now ongoing restrictions on economic activity and on the movement of people and goods between Israel and Gaza and Gaza and the world continues to impose both significant costs and hardships on Palestinian commerce and exports. And with Gaza currently having a 52.2% overall unemployment rate (57.8% in the key demographic ages of 15 to 29), and with the West Bank having a 32.4% overall rate of unemployment, their collective GDP growth has slowed to but a trickle if not coming to a complete halt. Now dependent on promises of foreign aid and foreign investments, even when delivered, always seems to see those monies falling into Hamas' hands in Gaza and into the hands of Mahmoud Abbas' PLO in the West Bank...hands that use said monies predominately to finance terrorist actions against Israel.
Sort of missing the point taught in economics 101 aren't they for economics 101 teaches that when there's some semblance of peace in the world...or even within a given specific region...there’s nothing that cannot be accomplished for with peace comes once unthought of economic partnerships between former enemies now working together to serve both parties well.
And if peace did become reality Israeli companies could provide
employment to tens of thousands of currently unemployed Palestinian
workers. In fact, Palestinian companies could partner directly with Israeli
companies and together start exporting goods to the larger Arab
markets. And with Israeli venture capital firms providing much needed
financing, support, and the all important know-how to help export
Palestinian goods, the region itself would see an increase in
economic partnerships. More companies would start joining forces as
economic benefits start taking hold if for no other reason than once
enemies are now working together towards the common goal of shared
economic prosperity.
But what if the hoped for reality of economic prosperity is not allowed to take hold...what if the "ground zero" Palestinian conflict cannot be diffused either through common sense or economic logic...what then? Simply...full-blown regional war replete with massive amounts of collateral damage breaks out.
Why war when the status quo and small skirmishes seem to have become the new accepted norm...because due to a lack of reporting by the media, unbeknownst to most is that back on March 18, 2019, there was a summit of sorts in Syria comprised of the military leaders from Iran, Iraq, and Syria. Meeting to coordinate a “region-wide military undertaking,” the Chairman of the Chiefs of Staff of the Iranian Armed Forces, Maj.-Gen. Mohammad Bagheri, signed a “comprehensive agreement” of cooperation with his Iraqi counterpart, Lt.-Gen. Othman al-Ghanmi...Iraq...as in the very country we helped free.
And after reaching an agreement to “integrate” the air defense systems of both countries in order to “fend off the challenges facing their respective air spaces and countries”...actual translation: they fear a joint military operation sometime in the not so distant future as the U.S. and Israel...with Saudi Arabia and Egypt possibly taking part as well...join together to finally put an end to Iran's influence in the Middle East. But the most interesting and quite unexpected surprise in all this is that Syria itself was not “integrated” into the joint air defense agreement with Iran and Iraq. And why...because the Russians would not allow it.
So what did Iran do...they secretly met behind Russia's back with those in Damascus to discuss replacing Russian advisers, experts, and
equipment with Iranian air defense missile batteries and radar. Not
only was this a bit too close for comfort for Israel, but it was also
a slap in the face to Russia who has been supporting Bashir
al-Assad's government forces against the anything but rebel forces. And to
say Russia is not happy puts it mildly, and that's why, I believe, we
have not heard a peep from Moscow about Trump's sending two of our
war ships to the Middle East.
That and the fact that Putin and Netanyahu have trade agreements already in place... agreements benefiting both countries economically and strategically...agreements neither Russia nor Israel want jeopardized by Iran. And Russia surely knows that if there is war and if they either stay out or actually side against Iran...which in the end I feel will happen...when it is over the U.S. and Israel as the victors will give Russia their much needed Port of Tarsus as a gift, if you will.
And while Iran does not want to see the economic benefits of regional peace President Trump, Vladimir Putin, and our friend Mudar Zahran surely do. And with certain economic incentives now being put into place to hopefully help change the dynamics of Middle East peace-making...maybe even hurrying up said peace-making a bit...the reality remains that economic growth for one side can only in times of peace translate into economic growth for the other side.
So why even risk war and all its destruction and lives lost when economic agreements alone can and do lead to peace...why risk it indeed.
Copyright @ 2019 Diane Sori / The Patriot Factor / All Rights Reserved.
****************************************************************************
For more political commentary please visit my RIGHT SIDE PATRIOTS partner Craig Andresen's blog The National Patriot to read his latest article, Illusion of Truth, Circle of Lies.
*******************************************************************************************************
RIGHT SIDE PATRIOTS...LIVE!
Tuesday, May 21st, from 7 to 9pm EST on American Political Radio, RIGHT SIDE PATRIOTS Craig Andresen and Diane Sori discuss 'Economic Prosperity v. War'; 'Illusions of Truth, Circle of Lies'; and important news of the day.
Hope you can tune in at: http://listen.samcloud.com/w/73891/American-Political-Radio#history...or on Tune-In at: https://tunein.com/radio/American-Political-Radio-s273246/
Economic Prosperity v. War
By: Diane Sori / The Patriot Factor / Right Side Patriots on American Political Radio
In my Right Side Patriots partner Craig Andresen's previous article, One Man Alone is Jordan's Future he made the case for King Abdullah’s days in power being numbered and that change will come to Jordan and the Middle East...a change for the better...a change where stability and democracy will end the decades long politically manufactured Palestinian conflict.
And Craig is right for history itself dictates that hatred and animosity between peoples can only go on for so long before it either naturally burns itself out or all-out war ignites the flames of possible annihilation. And while the entirety of the Middle East does remain the pyre upon which said war will most probably be ignited...sometimes war is the best of all options for in time war births peace and peace in turn more times than not births prosperity.
And it's prosperity or should I say the lack thereof that is the key component of why today's Middle East is such a mess for one tiny nation alone is the epitome of the proverbial success story...a nation rising strong and powerful upon the backs of six million dead... while the others continue to wallow in both class warfare and abject poverty...no middle ground allowed...where religious fanaticism trumps any semblance of common sense... where religious fanaticism by its very nature actually forbids any economic success.
And it's that one tiny nation whose steely determination to succeed helped drive its economic engine forward for that one tiny nation's people knew that with economic success all other successes naturally fall into place. And they have...as the Jewish State of Israel is not only an economic success story but a military one as well...for it's Israel who is now the lead tile in a dangerous game of dominoes where only through lasting peace will the other dominoes comprising the Middle East be able to stand instead of toppling over one after another leaving Israel as the last tile standing...the victor in a war that reality dictates only Israel could win.
But war does not have to be the final outcome as peace can actually be attained through economics alone if only certain Arab leaders would realize that both the old and the new hatreds do not serve them, their countries, or their people well. In fact, the continuation of the status quo...including the continuation of the Palestinian conflict itself...will directly lead to worsening economic conditions within the Arab Middle East while Israel's economy alone will continue to grow. And no amount of Arab oil can lessen the burden the people of those countries carry nor can oil be those countries sole economic driver.
Now enter center stage Jordan's and the Middle East's sole chance for a real future, and it's via Craig and my friend Jordanian Opposition Coalition leader Mudar Zahran and his proposal of a secular government for Jordan. Mudar understands well that for stability to be brought to the region the Palestinians must be welcomed home to Jordan, their true ancestral homeland. And Mudar also knows that Israel will help him rebuild his country's economy...an economy patterned in a way after Israel...the key to all Middle East economic success...that is once the Palestinian conflict is put to rest.
And dare we forget that once the Arab countries start openly importing Israeli goods the BDS sanctions movement against Israeli businesses and goods becomes but a mute point with Europe then falling in line with its reopening trade with Israel. And why...because by doing so it will aid Europe's economies as well...economies now struggling to support the very muslim invaders who have both physically overrun their lands as well placed a great burden on them dollars...or should I say Euros...wise. Remember, Europe is now feeding, clothing, housing, etc., the very folks who wish them all dead...and they're doing so at the great expense of their own people and their economic well being.
Now as for the so-called Palestinians specifically...peace with Israel will definitely bring much needed economic benefits for both the people and a government on the verge of economic collapse, because right now ongoing restrictions on economic activity and on the movement of people and goods between Israel and Gaza and Gaza and the world continues to impose both significant costs and hardships on Palestinian commerce and exports. And with Gaza currently having a 52.2% overall unemployment rate (57.8% in the key demographic ages of 15 to 29), and with the West Bank having a 32.4% overall rate of unemployment, their collective GDP growth has slowed to but a trickle if not coming to a complete halt. Now dependent on promises of foreign aid and foreign investments, even when delivered, always seems to see those monies falling into Hamas' hands in Gaza and into the hands of Mahmoud Abbas' PLO in the West Bank...hands that use said monies predominately to finance terrorist actions against Israel.
Sort of missing the point taught in economics 101 aren't they for economics 101 teaches that when there's some semblance of peace in the world...or even within a given specific region...there’s nothing that cannot be accomplished for with peace comes once unthought of economic partnerships between former enemies now working together to serve both parties well.
But what if the hoped for reality of economic prosperity is not allowed to take hold...what if the "ground zero" Palestinian conflict cannot be diffused either through common sense or economic logic...what then? Simply...full-blown regional war replete with massive amounts of collateral damage breaks out.
Why war when the status quo and small skirmishes seem to have become the new accepted norm...because due to a lack of reporting by the media, unbeknownst to most is that back on March 18, 2019, there was a summit of sorts in Syria comprised of the military leaders from Iran, Iraq, and Syria. Meeting to coordinate a “region-wide military undertaking,” the Chairman of the Chiefs of Staff of the Iranian Armed Forces, Maj.-Gen. Mohammad Bagheri, signed a “comprehensive agreement” of cooperation with his Iraqi counterpart, Lt.-Gen. Othman al-Ghanmi...Iraq...as in the very country we helped free.
And after reaching an agreement to “integrate” the air defense systems of both countries in order to “fend off the challenges facing their respective air spaces and countries”...actual translation: they fear a joint military operation sometime in the not so distant future as the U.S. and Israel...with Saudi Arabia and Egypt possibly taking part as well...join together to finally put an end to Iran's influence in the Middle East. But the most interesting and quite unexpected surprise in all this is that Syria itself was not “integrated” into the joint air defense agreement with Iran and Iraq. And why...because the Russians would not allow it.
That and the fact that Putin and Netanyahu have trade agreements already in place... agreements benefiting both countries economically and strategically...agreements neither Russia nor Israel want jeopardized by Iran. And Russia surely knows that if there is war and if they either stay out or actually side against Iran...which in the end I feel will happen...when it is over the U.S. and Israel as the victors will give Russia their much needed Port of Tarsus as a gift, if you will.
And while Iran does not want to see the economic benefits of regional peace President Trump, Vladimir Putin, and our friend Mudar Zahran surely do. And with certain economic incentives now being put into place to hopefully help change the dynamics of Middle East peace-making...maybe even hurrying up said peace-making a bit...the reality remains that economic growth for one side can only in times of peace translate into economic growth for the other side.
So why even risk war and all its destruction and lives lost when economic agreements alone can and do lead to peace...why risk it indeed.
Copyright @ 2019 Diane Sori / The Patriot Factor / All Rights Reserved.
****************************************************************************
For more political commentary please visit my RIGHT SIDE PATRIOTS partner Craig Andresen's blog The National Patriot to read his latest article, Illusion of Truth, Circle of Lies.
*******************************************************************************************************
RIGHT SIDE PATRIOTS...LIVE!Tuesday, May 21st, from 7 to 9pm EST on American Political Radio, RIGHT SIDE PATRIOTS Craig Andresen and Diane Sori discuss 'Economic Prosperity v. War'; 'Illusions of Truth, Circle of Lies'; and important news of the day.
Hope you can tune in at: http://listen.samcloud.com/w/73891/American-Political-Radio#history...or on Tune-In at: https://tunein.com/radio/American-Political-Radio-s273246/
Labels:
Arab markets,
BDS,
economic prosperity,
economics 101,
Gaza,
Iran,
Israel,
Jordan,
King Abdullah,
Middle East,
Mudar Zahran,
Muslim Brotherhood,
Palestinian conflict,
peace,
Russia,
U.S. warships,
West Bank
Wednesday, August 17, 2016
Op-ed:
Debt, Budgeting, and Necessary Evils By: Diane Sori / The Patriot Factor / Right Side Patriots
First…as to the national debt…as I write this article the
U.S. national debt stands at roughly $19 and a half trillion dollars* and
growing due to rising annual deficits. But what exactly are the specifics of
the national debt some ask…simply, it’s the total amount of monies owed by the U.S.
federal government to creditors, and this includes all individuals, businesses,
governments, and other organizations that own U.S. government debt securities,
but does not include any debts in the name of individuals, corporations and
state or municipal governments.
And here is where one major problem lies as Social Security
revenues have exceeded benefit payments for years now with the surplus being required
by law to be invested in ‘treasuries’...’treasuries’ that have a low liquidity risk
and almost zero credit risk but have yields that are lower than all other kinds
of debt securities of comparable maturities…with treasury bills having a maturity
of less than one year; treasury notes maturing between one and ten years; and with
treasury bonds reaching maturity over 10 years.
But now the questions are what exactly is the ‘tax of inflation’…which
comes complete with a rise in interest rates courtesy of the Federal Reserve
reducing ‘real’ interest rates on U.S. government debt obligations…and how does
it tie into the national debt. Simply, inflation is an increase in what’s
called ‘fiat’ money…monies paper and otherwise that our government declares to
be legal tender but monies not backed by a physical commodity (tangible ‘treasure’)
that brings with it higher consumer prices. And this happens when the economy's
“aggregate volume of money” expenditures (total spending in the economy) grows at a faster rate than its total real
output grows.
Debt, Budgeting, and Necessary Evils By: Diane Sori / The Patriot Factor / Right Side Patriots
As we head down the road to the November 8th election, and since
the national debt is once again being pushed to the forefront as something that many say must not only be addressed but actually dealt with, there is something very important that is often forgotten...as in the actuality of numbers being shifting
on paper...as in numbers being 'manipulated'...something akin to federal market
manipulation...done to make it appear that the national debt is either more or less
than it actually is.
And being that I am not an economist I am forced to speak in
generalities in this article, but even I know that certain tangibles are just
common sense dictated. And the number one tangible is that the national debt is
most assuredly open to numbers shifting and manipulation and that a balanced
budget...the cry of so many...is NOT necessary to a successful economy and
sometimes can actually work against both a country's economic stability and its
economic recovery when coming out of a recession.
First…as to the national debt…as I write this article the
U.S. national debt stands at roughly $19 and a half trillion dollars* and
growing due to rising annual deficits. But what exactly are the specifics of
the national debt some ask…simply, it’s the total amount of monies owed by the U.S.
federal government to creditors, and this includes all individuals, businesses,
governments, and other organizations that own U.S. government debt securities,
but does not include any debts in the name of individuals, corporations and
state or municipal governments.
And why is this money owed…because of a failure of the
federal government…and especially Obama…to understand basic economics 101…as
in you cannot spend more money than you take in. And when you add in the monies
borrowed to make up the difference the national debt becomes the ‘gross federal
debt.’ And that debt has two parts with one part being the debt held by the public…meaning
money the government borrows on the open market from domestic or foreign
investors; and the other part being what’s known as intra-governmental debt
meaning money the government owes itself…with the Social Security trust fund
being but the largest and most known example with the others being similar
programs for government employees and the military.
And here is where one major problem lies as Social Security
revenues have exceeded benefit payments for years now with the surplus being required
by law to be invested in ‘treasuries’...’treasuries’ that have a low liquidity risk
and almost zero credit risk but have yields that are lower than all other kinds
of debt securities of comparable maturities…with treasury bills having a maturity
of less than one year; treasury notes maturing between one and ten years; and with
treasury bonds reaching maturity over 10 years.
So knowing all the above how can the ‘monies owed’ numbers
be manipulated…for starters by the government's abolishing of the long held ‘gold
standard’ they has been able to depreciate the value of our currency allowing for
what some economists call the “hidden and
deceptive tax of inflation.” And according to these same economists
inflation could be controlled if the feds were not able to monetize debt or
manipulate mandatory reserve requirements…as in the amount of monies that must by
law be kept in reserve for emergencies.
But now the questions are what exactly is the ‘tax of inflation’…which
comes complete with a rise in interest rates courtesy of the Federal Reserve
reducing ‘real’ interest rates on U.S. government debt obligations…and how does
it tie into the national debt. Simply, inflation is an increase in what’s
called ‘fiat’ money…monies paper and otherwise that our government declares to
be legal tender but monies not backed by a physical commodity (tangible ‘treasure’)
that brings with it higher consumer prices. And this happens when the economy's
“aggregate volume of money” expenditures (total spending in the economy) grows at a faster rate than its total real
output grows.
Now when you add in that inflation is also an increase in
the actual supply of money (again without tangible ‘treasure’ to back it up) and
without a corresponding increase in the supply of goods and services that
should but don’t go with it, the reality becomes that when only the federal
government can create new money in order to cover for what it spends in excess
of its income…its monies made…you just know the numbers have been manipulated so
that the feds…so that Obama…can cover what they know is spending wrong doing
but simply don’t care.
And numbers manipulation can be used in both the pro and con
sense in regards to the national debt with actual budget deficits…with deficits
being the annual difference between income and expenses…inflating the debt and
with surpluses shrinking it. Two pros of the national debt is that first, it is
a good way to get short term extra funds to invest in much needed infrastructure
improvements and second, a ‘revolving debt’…a line of credit where the customer
(in this case the government) pays a commitment fee and is then allowed to use
the funds when they are needed….is how we are able to fund all of our programs and
finance both private and government investment in what’s called ‘productive
capital’ (capital which is invested to give interest) to support and sustain economic
growth.
But the cons are what most need to understand for too much
debt…the situation we now face thanks to Obama and his cronies out of control
spending…means increasing government resources must go towards ‘servicing debt’…as
in to pay interest not to pay down the principal owed.
Another critical con is that by paying off the national
debt…bringing it down to zero as many want…is that a debt-free U.S. can upset the global
financial markets as there would then be no need to issue U.S. Treasury bonds.
And why…because we borrow money by selling bonds and with no debt there would
be no reason or obligation to sell bonds…and with no reason or obligation to
sell bonds especially with U.S. bonds seen as a safe investment and the
backbone of the global economy…other country’s economies would then be tethering
on quite unstable grounds for what then could they safely invest in.
Remember, too, the national debt has been around since our
country’s birth starting with the $75 million inherited from the original 13
colonies, so is paying off the national debt a necessity or even required by
law…in a word ‘no.’ But with this being a time of relatively high unemployment
paying off the debt in full would a be economically disastrous as the foreign markets
would then lose confidence in America's ability to pay its debts as they actually
come due. And if the markets lose
confidence they will either stop lending monies or will demand higher interest
on monies lent…neither a wanted scenario.
And yet common sense dictates that what should be done is at
least reduce the size of the debt. But sadly, the fastest way to do so is to
increase taxes and cut spending, something many on both sides of the aisle
would never go for. So a compromise of sorts would be that if the national debt
could be made to stay around a congressional set percentage of the GNP…the Gross
National Product (the total value of all final goods and services produced
within our nation in a particular year)...and with the economy having a GDP…the Gross
Domestic Product (a monetary measure of the market value of all final goods and
services produced in either a quarterly or yearly period)...that grows at a steady rate
of around 3-4% each year, the economy itself would then start to show a decidedly
marked improvement.
And all this could be done by lowering the amount of monies
owed NOT by wrongly paying off the national debt in full.
Now as for the call for a balanced budget…here too there are
pros and cons, and in this case the cons are more critical to our economic
well-being than the pros. And a big con is that a balanced budget would limit
the federal government's ability to deflect sudden threats to the economy…as in
for example extra monies suddenly needed for war…and according to numerous Keynesian
economists, a balanced budget can actually hinder an economy’s ability to ward
off serious recessions. For example, if interest rates rise too quickly (to
fight inflation), the government would find it very hard to afford interest
payments on the national debt, leading to default or still even higher inflation.
A vicious cycle for sure, tightly tying the national debt
and the budget together.
How so…as with the aforementioned inadvisability of paying
off the national debt…which can only be reduced by increased taxation, reduced
spending in sometimes key areas (as in major cuts to Medicare, Medicaid, and
Social Security), debt restructuring (numbers shifting), monetization of the
debt (the process of turning U.S. Treasury debt and private corporate debt into
money), or outright default…all unwanted scenarios…comes the indisputable fact
that the federal budget process does deal directly with taxation and monies
spent, and suggestions made for restructuring the debt or for defaulting will most
likely not be to ‘We the People’s’ benefit or will actually address the debt.
Not be to ‘We the People's’ benefit puts it mildly for in no
uncertain terms this means that to balance the budget, like with paying off the
national debt, taxes must be raised and raised again and again until there will
be more taxes taken out of your paycheck than the pay you get to take home.
And while most elected officials…most politicians…know and
accept this as fact…some still continue to push for a ‘balanced budget
amendment’…an amendment that contrary to what some claim still would not put a set-in-stone
limit on government spending as a vote by three fifths of Congress could raise
the limit…making this yet another reason why Congress must stay red. And while
this amendment would also putting certain restrictions on the amount of debt the
feds are allowed to accrue, the fact remains that this amendment is nothing but
a band aid of sorts laying on top of the still remaining core issue of how to seriously
control over sending.
And while the budget process itself gives Congress the
chance to pick through both individual and government programs and spending to
see what works and what doesn’t coupled with what is needed and what is not
needed…to balance the budget forever means costs must be contained while income
sources still must be obtained…again meaning taxes need to be raised…and with
the burden of that raise falling as usual on the already struggling and
over-taxed middle class.
So while some aspects of balancing the budget do show
promise of sorts…like its addressing of the deficit and long-term debts…the
fact is that this amendment does not take into account that if government
spending is cut drastically or is cut too fast, this can lead to an increased
economic downturn. And as per some leading economists, government spending
should increase when the economy is on the decline, because when a country
starts producing less than they used to, there is a recession, and if that
condition goes on for a given period of time, then a depression results and if
lasting long enough a country’s economy…including our own…could collapse.
And while all this sounds like gloom and doom, what people simply need to
be remember is that for a country to truly be successful in the economic
sense is that some manageable debt is advisable...just like one needs to have some personal debts so that one has a history of repayment because without that one cannot get loans as in a mortgage or a car loan...and that balancing the budget does
more harm than good no matter what some politicians pandering for votes say.
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See the national debt in real time here: http://www.usdebtclock.org/
Monday, May 16, 2016
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Making Good Deals...I Don't Think So
By: Diane Sori / The Patriot Factor / Right Side Patriots on http://americanpbn.com/
- Former presidential candidate, Florida Senator Marco Rubio, on the truth about Donald Trump's business record
Well isn't this interesting...Donald Trump refuses to release his tax returns before the November election...that is if he does in the end secure the nomination.
"There's nothing to learn from them," Trump keeps claiming as he says we voters have no interest in seeing them...which by the way is not true as I and countless others would like to see all the information pertaining to his bankruptcies and failed business ventures he is so desperately trying to hide. Using the excuse that because he is currently in the middle of an audit he has to withhold this information for now, tax experts rightfully question what his logic is on this. So now I ask what about previous returns prior to this current one if that's the only one Trump is so concerned about...why can't we see those...just saying.
Remember, Trump has been bloviating for almost a year now about what "good deals" he'll make for America...how he'll bring jobs back to America... but how can Trump make "good deals" for our country when his successes involve real estate deals...luxury real estate deals...deals to pad his pockets alone and last time I checked America does not go around buying up foreign real estate...like the Chinese and the Saudis do.
And while many do think government should be run like a business an equal number think not, but either way there remains major differences between the two no matter one's line of thinking. First, the most important difference is that private sector business...which is Trump's 'supposed' area of expertise...is based solely upon market-driven competition with profit as its prime objective, while the so-called business of government is most times what's referred to by many leading economists as a 'legislated monopoly'...meaning it's workings are boggled down in restrictions due to laws, regulations, and set in stone policies that can prevent sometimes necessary actions from being implemented in a timely manner.
And Trump's not understanding this major difference can be witnessed by his wanting to place higher tariffs (in other words 'taxes') on foreign goods entering our country...which in turn will start a trade war...a very bad scenario for both the business of the government and for the consumer as 'Made in America' goods will rise in price along with their foreign counterparts. So much for 'free market' enterprise.
And why...because as the economy and business conditions change...as they move forward two steps and then back one step...Trump has forgotten that the best outcome as far as trade deals are concerned is when both the buyer and the seller reach a mutually beneficial agreement not when there is one clear winner and one clear loser. Again, why is this...because in a national or in a global economy certain happenings are impossible to control through any sort of deal...happenings like inflation and unemployment rates.
And while you can try to fight 'big' government as Trump claims he is doing but isn't, in the end the government not private sector business always wins as said laws, regulations, and policies, become walls made of differences that even Trump cannot cross when it comes to government spending.
And this description fits Donald J. Trump to a tee for in Trump's little world of ego-driven narcissistic special deals that serve his private business interests alone...special interests serving the Trump empire's all-important bottom line...meaning nothing Trump does or attempts to do as president will increase his personal business coffers. Therefore, he must vacillate, flip-flop, and just plain lie if that's what it takes to make him 'appear' to have won in regards to the business of government.
The stuff of dictators and kings, but then again maybe that's what Donald J. Trump sees himself as for in no way do I believe that Trump will voluntarily downsize the powers or authority he yields in his private business dealings to accept that his powers and his authority as president...thanks to our system of checks and balances...would be greatly limited. His ego coupled with his quest to be 'the boss' of everything won't let him and that is something he has made clear time and again in how he loves to pat himself on the back every chance he gets...after all he always says he's smarter and richer than almost anyone else.
So as Donald J. Trump's arrogance is in the forefront for all to see by his refusal to make public his tax returns...something all other candidates have done... one really has to wonder if what he's obviously hiding would expose not only his many failed business ventures but his lack of understanding the intricacies of government business as well, allowing all to see that the man who claims he's the consummate businessman who would make "good deals" for America is really as incompetent to steward America's ship as is one Barack HUSSEIN Obama....as is one Hillary Rodham Clinton or one Bernie Sanders.