How will the market react to downgrade?

[BriarFox]

So, state your general policy when it comes to the economy. Clearly, this general policy wouldn't be used in our current situation.

Moderate taxes based dynamically on income, spending on social programs, defense, research, foreign aid, and the environment within the capability of the budget and reason, and a reduction of the national debt. In certain circumstances, spending would exceed the budget of the current year, but those cases should be strategic investments that pay off in the longer term.

[~Rocktar~]

Isn't the inside of your ass empty yet? I was responding to a "cut-taxes and spend argument," with a constant level of spending implicit.

No, you were spouting your usual bullshit as always and when called on it, backpeddling as usual.

[BriarFox]

No, you were spouting your usual bullshit as always and when called on it, backpeddling as usual.

How's the weather on Pluto?

[waywardgs]

How's the weather on Pluto?

I just read there are three other newly discovered possible dwarf planets out around neptune.

edit: http://www.wired.com/wiredscience/20...s-kuiper-belt/

[BriarFox]

I just read there are three other newly discovered possible dwarf planets out around neptune.

edit: http://www.wired.com/wiredscience/20...s-kuiper-belt/

Oh, that makes sense. Hey, Rocktar, how's the weather on Dwarf Planet 3?

[Latrinsorm]

You didn't understand my point... the first sentence was you saying you can't tell what would have happened without the stimulus.. in the second you attempted to say what would happen.

An important word in the first sentence was "exactly". Bounds can be set on an unknown without determining it exactly.

[NocturnalRob]

More on the actual thread topic--Dow down ~3% so far today, gold still shooting up, and the yield on the 10-year is a fucking joke.

[Bobmuhthol]

No, the debt increases when you spend more than you have. Revenue can decrease and it does not automatically require increasing debt. This is the logical disconnect of all Liberal fiscal arguments. Revenue decrease does NOT automatically equal debt increase.

I'm not liberal, but I'm enough of an economist to understand that a revenue decrease does necessarily coincide with a debt increase, ceteris paribus. It is very obvious that whoever said that (BriarFox?) was speaking strictly about the relationship between revenue and debt.

[Kembal]

You didn't understand my point... the first sentence was you saying you can't tell what would have happened without the stimulus.. in the second you attempted to say what would happen.

Ah, I think you misunderstood my point. Insodus claimed that we knew exactly the increase in our debt due to the stimulus. My point was to deomnstrate that wasn't the case. Hence putting the word exactly in quotes.

When do we stop putting so much faith in the precious Keynesian Economic Theory and simply call it what it is... a bust? Granted, we will probably continue to keep doing what we've been doing... pissing away money on top of more money and hoping that we can spend our way out of a recession.. and turn this into what we will later call The Greater Depression.

You seem very confused as to what Keynesian economic theory proved during the Great Depression. Keynesian programs were used by FDR to start a recovery at the onset of the Great Depression. In 1937, FDR thought he could balance the budget, and therefore cut spending and raised taxes, which reveersed the recovery. The Depression thus continued until 1941, until U.S. entry into World War II.

If you can provide an example as to where Keynesian stimulus (done at the correct magnitude) has not worked since the 1930s in a recession/depression scenario, I'd be interested in reading about it.

[Parkbandit]

You seem very confused as to what Keynesian economic theory proved during the Great Depression. Keynesian programs were used by FDR to start a recovery at the onset of the Great Depression. In 1937, FDR thought he could balance the budget, and therefore cut spending and raised taxes, which reveersed the recovery. The Depression thus continued until 1941, until U.S. entry into World War II.

So.. for 4 years Keynesian programs didn't work.. so he wanted to try something else?

If you can provide an example as to where Keynesian stimulus (done at the correct magnitude) has not worked since the 1930s in a recession/depression scenario, I'd be interested in reading about it.

Off the top of my head... let's see, maybe Japan.. right before the "Lost Decade". I love how you quantify things with "(done at the correct magnitude)" because that is the excuse ALWAYS given by Keynesians when their economic theory flops... "We didn't spend ENOUGH!"