2 months until next budget crisis?
A prominent economist known as 'Dr. Doom' says the country's budget dispute will come roaring back soon.
Without Congressional action, the country will see $110 billion in spending cuts commence on March 1, writes New York University professor Nouriel Roubini in the Financial Times. And just as those spending cuts hit, the U.S. will hit the debt ceiling. "That is only the beginning," he added.
Known as "Dr. Doom" for his dour views on the economy, Roubini won acclaim for predicting the collapse of the housing market and the 2008 recession. Now, he says that 2013 will be plagued by numerous debates on the budget and the economy. Later this year, talk will turn to medium-turn fiscal consolidation, triggering yet another argument between Republicans and Democrats, he adds.
So expect a big fight about entitlements, and a series of little fights over tax reform: Should the US introduce a value added tax? A flat tax? Higher (or lower) income taxes? A carbon tax? Should we close corporate tax loopholes to raise more revenue? It'll soon get messy.There's more. Amid all the fierce debates on the horizon, there will be real damage to the economy. Roubini and other economists expect that the combination of tax increases, spending cuts and an increase in payroll taxes will eat into the country's economic growth. Roubini estimates that it will translate into a 1.2% of GDP drag on the economy this year.
If the economy was strongly growing at around 3.5%, then that wouldn't be as much of a problem, he said. But recently, the economy has only grown at about 2%.
"So the U.S. could quite easily come perilously close to stall speed this year -- or worse, if the eurozone crisis worsens," he added.
So who's right on this issue, Republicans or Democrats? No one, says Roubini. Even typical Republican voters don't want to gut the welfare state, and "Tea Party extremists are more noise than signal."
He says that maintaining a basic welfare state "is right and necessary" in our age of globalization, rapid technological change and demographic pressure. But doing so means higher taxes for the middle class along with the rich.
It will probably take years for the U.S. to confront the reality of its fiscal position and raise revenues to a level sufficient to fund a reformed -- but not gutted -- welfare state. Large fiscal deficits will remain the norm for the next few years, at least so long as the bond market remains quiet, as I believe it will.
More on Money Now
- US sees best auto sales since 1973
- Stocks open higher for 5th straight year
- NJ Gov. Christie slams GOP leadership
Anyone who violates that OATH is subject to TREASON and thus should be held and charges accordingly. They only get away with Anti Constitutional acts if we choose to let them. It is time ti fight back with the Federal Law! So you are on notice! Continue to defy the Constitution. You will be willingly be violating your Oath you took and Federal Law . Now we need a Very Good Group of Attorneys to Step up yo the Plate.
WASHINGTON (AP) — The House has overwhelmingly approved $9.7 billion to pay flood insurance claims for the many home and business owners flooded out by Superstorm Sandy. The vote came more than two months after the storm hit and days after Northeast Republicans erupted over House Speaker John Boehner's decision to delay an earlier vote.
Friday's 354-67 vote sends the bill to the Senate, which expects to pass the bill later in the day. All of the no votes were cast by Republicans.
The bill gives more borrowing authority to the National Flood Insurance Program to pay about 115,000 pending claims.
Northeast lawmakers say the money is urgently needed for victims of one of the worst storms ever to strike the region. Boehner set Friday's vote after sparking controversy with a decision to delay House action on a broader Sandy aid package.
67 compassionate Republicans said FUKE YOU PEOPLE!
Looking past and through all the Right Wing smoke-and-mirrors, fog, fart gas, what have you, here is what the Right Wing is striving for: The United States run by an Aristocracy: "control of affairs by the hands of a minority who have risen to a higher plain of fortune and instruction" and removal of voting and other democratic rights from the majority.
This "American Aristocracy" complains that there has been a "degradation of suffrage (the right to vote) to lower and lower strata of intelligence". If you can understand this, you can understand why Republicans hate democracy and majority rule. That is why they are digging their heels in and insisting that they (the minority) should rule our country. However, Republicans omit that wealthy high-rollers playing "Casino Economics" ruined our economy - some of whom received bailout money.
The Republican Right Wing continues to spend a great deal of time convincing their own voting block and supporters - who they could not care less about except for their vote - to continue their support. These "supporters" are continually being duped and purposely confused and purposely riled by the Right Wing toward hate for those whom the "American Aristocracy" despises – which is pretty much 98% of this countries citizenry. In other words, "conservatives" end up voting against their own financial security and other interests.
This too, is why the Republican-Tea Party Right Wing is willing to put our very prosperity, domestic security and national security at risk for political gain. They are destroying America, economically, socially and democratically so they can "control the affairs" of the United States via creating a Third-World workforce with no money, hence, no political power. Your standard-of-living is being purposely destroyed by the Republican elite and others – so they can hold sway over all power, property and wealth in America. Put another way, under the Republican "plan", you will NEVER be able to prosper; you will always be under their control and manipulation - I am sure you can figure out the rest of this Republican "plan" for yourself…
All anybody has to do to get a good idea of what's wrong with this country today is read a few of the many nit-wit comments posted here. The ignorance and poor reasoning is mind-boggling. The preamble to the US constitution states that one of it's goals is to establish a government that will "provide for the common welfare", but for some reason some of the people here are opposed to that, ie they hate the Constitution. They compound that error by implying that we are not entitled to things we as individuals have paid for, like social security and medicare but that it is ok for our government to spend 1/2 of all the money spent on the military in world each year here in the U.S. People that think like these clowns caused both the Great Depression and the Great Recession. Hopefully the country has learned its lesson and won’t let these people take charge again for another 50 years. If these people don’t like it they can emigrate to a country that has a government more to their liking. I suggest Haiti or Somalia.
America must never "reform" to a welfare state. Socialism and communism steal individual spirit and drive. Shall we all become the couch veggies that are robbing this country blind? How many so called unemployed simply have it better on food stamps, welfare checks, free phones and the duplicative social distribution programs? Our world competitors and enemies do not rest. When they see a weak America, they see opportunity for advancement - and they are boldly and mockingly taking it.
Here we are, considering equality in the US. That is IMPOSSIBLE in a free and democratic society. How shall we gain equality? It cannot be by making everyone as rich as the richest. Middle class automatically denotes a top and bottom layer. So, we get it be making every American equal to the lowest, most pathetic, laziest one. What wonderful reform!
Why are we sending money overseas? To protect our national interest? Where's the imminent threat? Nation building doesn’t work. Use covert ops to flex American muscle, less lives lost, less expensive - keep those dollars here where they are needed to boost the economy.
Congressional action to start spending more on US small buisness, and other US job's is a Must!
How the US was saved from the Great Depression
More Job's by Americans More tax's to collect - It's not rocket science but most Republicans and Democrats in office are not financial guru's :)
In terms of the absolute value of aid given, the United States is the world's top donor by far. So where is all that money going?
Check this link out:
Some of these countries protest against the US and killing our diplomats!
let cut - this funding Like ASAP!
I dunno ONLY 21 down on the DOW........Pretty nice day..
None of the Indexes/indices were even down a half a percent...Far from it.
Along with that, a FMV dollar increase on all the investments....Woooohooooo!!
Still about +450 upside for DOW this week....We'll see...
>>>your all wasting your breath, donations and time on the Republicans, We all need to go somewhere else? tea party, Libertarians, a new third party? whatever it takes, and however long!<<<
Yes, please do that. The sooner you do, the sooner the you'll be right where you belong, in a fringe, lunatic, splinter group of morons. Then the majority of sane adults can get back to running things without obstinate obstructionists making a theatrical mockery of our system of government.
Why is Congress, Senate etc getting pay increases? Why don't we start with this problem? And then their benefits?
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] The headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
For the most part, the stock market was a sideshow. The main trading events were seen in the commodity and Treasury markets, both of which saw some decent-sized losses within their respective complex.
Dollar strength was at the heart of the weakness in ... More
More Market News
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'