# "End This Depression Now" by Paul Krugman



## Mustang (Jun 19, 2012)

*Attention: This is a BOOK review, not an attempt to engage in a political argument!* I can understand the other thread being moved to "Economy" and merged with a different thread since the original thread did not START with a book review, but I added one about half a dozen posts into it, and this is that same review.  Consequently, I would appreciate it if the review could stand instead of being buried on post #316 of another thread where nobody could possibly find a review of the book if that's what they were looking for.


I suppose that anyone who  knows of Paul Krugman knows he's a columnist  for economic and political  matters (they're often interrelated) at the  NYT, an unabashed Keynesian  economist, an author of several books, and a  recent recipient of a Nobel  Prize in economics in 2008, as well as an  occasional TV pundit. He's  also routinely denounced by conservatives  for many, if not most, of his  positions, which is a shame considering  that, regarding economic policy,  he's routinely taken on Democrats as  well as Republicans for years simply because he dislikes bad economic  policy, regardless of which political party is pushing it.  I get the  impression that's because he believes that, too often, public policy is  championed for reasons other than its merits.  For example, sometimes  people push certain policies because they benefit one group or segment  of society.  Sometimes it's because it's an ideological belief.   Sometimes it's simply a lack of a working knowledge of both economics  and the historical record of what has worked and what didn't work in  previous recessions. 

While  I've read the occasional column by Krugman, I had never read any  of his  books. This particular book was just published (April 30, 2012)  and it seemed timely  considering the current ongoing debate on how to  revive the economy. I  was also struck by the title (which I don't  particular like) because I  perceived it as essentially a plea for  attention, or at least for  serious consideration.  But Krugman's title  is meant more to describe the human toll that the economic downturn is  having on families as opposed to a textbook definition of the state of  the economy.

In the book Krugman offers an  explanation of our current economic  crisis, how we got here, and how  best to get out of it. In fact, he  states several times that we really  don't have to be going through this  extended economic downturn at all.   He offers historical perspective  going back to before the great  depression, and an analysis of differing  approaches and offers his ideas  for how best to solve our current  economic problems.

The book is  intentionally written for the layperson. While there are a  few graphs  and charts (I would have preferred more, frankly), there's  no math or  complicated economic theorems to make the eyes glaze over.  It's  basically written in a very straightforward style.

Of course  Krugman discusses the concept of austerity and the notion of  cutting  back on national debt immediately as a way of addressing our  current  problems. And needless to say, Krugman is highly critical of  that  approach. He offers several example of how and why those policies  would  have the exact opposite of the intended consequences. Said  plainly,  Krugman states that such policies will only serve to dig us  into a  deeper hole. (But that doesn't mean our country won't try it  anyway,  does it?).  

That's not to say that Krugman doesn't think that our huge debt problem  needs to be addressed.  He does.  He just doesn't think it's anywhere  near being our most pressing problem, and he offers economic numbers to  support his case. And like I said earlier, he says that attacking the  debt problem at the wrong time (now) will only make our worst problem  (the anemic recovery) worse still.

Krugman also tackles a number of economic myths, both  American and  European, which he says are getting in the way of solving  the economic  problems simply because the decision makers don't have an  accurate  understanding of what the problem is. And as everyone knows, if  you  don't identify the core problem and how and why it developed in the   first place, you're probably not going to make any progress in solving   the problem unless blind luck or providence lend a hand.

One of  the European myths Krugman tackles is that all the European  countries  are in trouble because of profligate spending. Untrue, he  says. While  some countries like Greece have caused many of their own  problems, other  countries like Spain had actually been paying down  their debt relative to GDP for years  when the economic crisis struck.  In other words, it was the economic  crisis which led to the debt  crisis, not the other way around.

The  one part of the book that I found particular surprising (don't ask  me  why) was Krugman's chapter on Austerians (Ch 11) where he gives a  number  of reasons why people embrace austerity. Of course ignorance of   economics and history both play a role. Krugman also makes a good case   that there's an emotional desire to 'punish bad nations' by making them   suffer for their perceived economic sins despite the fact that they're   often not at fault for the problem and that it's a counterproductive   approach. But more disturbing still is Krugman's belief that powerful   people have an economic interest in preventing a recovery even though a   recovery would also help them as well as everyone else. If true, I  guess  we should never underestimate the possibility that powerful  people may  have suspect motives when their self-interest conflicts with  the common  good.

Krugman also discusses why the European Union's adoption of the Euro as a  common currency is causing so many problems for Europe.  For example,  he points out that if all the countries still had their own currencies,  countries like Greece could devalue their currency relative to the rest  of Europe, and that's now that's not an option for any country that uses  the Euro.

Despite all the other reasons to read this book, it's worth  reading if  for no other reason than to better understand the nature of  the  liquidity trap in which we currently find ourselves, and that's  tackled  very early in the book.

It's only 238 pp, and it's a great primer in understanding our current economic doldrums.


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## Mad Scientist (Jun 19, 2012)

So it's not the debt itself, it's having the debt during a recession? Is THAT what he said?

If so then the solution would be to have no debt ever since you don't know when the recessions are gonna' be?

Right?


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## Mustang (Jun 19, 2012)

Mad Scientist said:


> So it's not the debt itself, it's having the debt during a recession? Is THAT what he said?
> 
> If so then the solution would be to have no debt ever since you don't know when the recessions are gonna' be?
> 
> Right?



No, that's not it.

One of the points of focusing on growing the economy first (as opposed to trying to pay down the debt even as the economy may be contracting) is because the debt goes down (as opposed to going up) as a percentage of GDP.


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## waltky (Jul 13, 2012)

Granny still waitin' fer her 2nd stimulus check...

*The $64,000 Question: How Much Has Debt Increased Per Taxpayer Under Obama?*
_July 12, 2012 - The national debt has now increased by more than $64,000 per federal taxpayer since Barack Obama was inaugurated president._


> At the close of business on Jan. 20, 2009, according to the U.S. Treasury, the total debt of the federal government was $10,626,877,048,913.08. By the close of business on July 10, 2012, that debt had climbed to $15,885,854,755,351.47an increase of $5,258,977,706,438.39.  In Statistics of Income2009 Individual Income Tax Returns, which was published this year and is the Internal Revenue Services most recent statistical report on individual income tax data, the IRS reported that there were 81,890,189 tax returns filed in 2009 that reported taxable income.  If each of these 81,890,189 federal taxpayers were given responsibility for paying off an equal share of the new federal debt added since Obama was inaugurated, they would each need to pay about $64,219.88.
> 
> If each of these 81,890,189 federal taxpayers were given responsibility for paying off an equal share of the entire federal debt of $15,885,854,755,351.47, they would each need to pay about $193,989.72  A Republican majority was elected to the House of Representatives in November 2010 and took office in January 2011. Because the previous Congress had passed a continuing resolution that kept the federal government funded until March 4, 2011, the Republican-majority House did not gain legislative responsibility over federal spending until that date. Article 1, Section 9, Clause 7 of the Constitution says: No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law. A law appropriating money cannot be enacted unless it is approved by the House.
> 
> ...



See also:

*Americans Will Work More than 6 Months to Pay Cost of Gov't in 2012*
_July 12, 2012  This year, Americans have to work until July 15 to pay for the burden of government, more than six months._


> In a new report,  Americans for Tax Reform (ATR) has calculated that Americans will spend a total of 197 days toiling to pay for the cost of government.
> 
> "Cost of Government Day is the date of the calendar year on which the average American worker has earned enough gross income to pay off his or her share of the spending and regulatory burden imposed by government at the federal, state and local levels," reads the report.
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## waltky (Aug 12, 2012)

6 trillion more in debt since 2008...

*Debt Up $6.35T Since Ryan Predicted--in 2008-U.S. Was Headed Toward Bankruptcy*
_August 11, 2012 : Rep. Paul Ryan, whom Republican presidential candidate Mitt Romney has picked as his running mate, told CNSNews.com four years ago, in August 2008, that the U.S. was heading toward bankruptcy on the fiscal path it was then following and that it would be &#8220;mindboggling&#8221; to make the problem worse by adding the sort of health-care plan that then-Sen. Barack Obama was advocating in his presidential campaign._


> CNSNews.com asked Ryan: &#8220;If our country, if the federal government of the United States, stays on the fiscal path it is currently following, is the government going to go bankrupt down the road?"  &#8220;Yes. We know that for a fact,&#8221; said Ryan. &#8220;All the actuaries, all the objective score-keepers of the federal government are predicting this. So, this much we know. What we know is our government is growing at an unsustainable pace and it will overwhelm our economy&#8217;s ability to pay the bills.&#8221;  Since CNSNews.com first published Ryan making this prediction on Aug. 4, 2008, the debt of the federal government has grown by $6.35 trillion--rising 66 percent, from $9,565,042,361,845.53 then to $15,915,814,457,919.46 now.
> 
> Ryan then pointed out that estimates by the Government Accountability Office at that time indicated that the U.S. government already faced $53 trillion in unfunded liability to pay the promises it had made through entitlement programs, including Social Security, Medicare and Medicaid. Each year the government put off dealing with these problems, Ryan said, the unfunded liabilities would increase by $3 trillion. To pay for these government promises without reforming the entitlement programs themselves, Ryan explained, would require imposing massive tax increases on future generations of Americans.
> 
> ...



See also:

*Obama Requests $542 Million In Housing Aid for Drug Addicts*
_August 9, 2012 -- President Barack Obama has requested over half-a-billion dollars for Department of Housing and Urban Development (HUD) programs that provide housing assistance to homeless or HIV-positive people in drug treatment._


> For the Fiscal Year 2013 National Drug Control budget, Obama has requested $25.6 billion, including $542.4 million to fund HUD programs that provide housing to individuals in drug treatment, according to the White House Office of National Drug Control Policy (ONDCP), which is charged with developing that budget.  According to the ONDCP, the requested FY 2013 budget will &#8220;reduce drug use and its consequences in the United States.&#8221; (The fiscal year 2013 runs from Oct. 1, 2012 to Sept. 30, 2013.)  The $542.4 million in drug control funding for HUD marks an estimated 18 percent increase of $96.4 million over the FY 2012 enacted level of $446 million.  Specifically, the nearly half-billion dollars in FY 2013 taxpayer-funds will be used to support programs that provide housing assistance under the Community Planning and Development Program to people with AIDS and homeless persons, a HUD spokesperson explained in an e-mail to CNSNews.com.
> 
> The drug control funding for HUD is used by the Community Planning and Development Program component to support, specifically, two housing assistance initiatives: The Housing Opportunities for Persons with AIDS (HOPWA) and the Continuum of Care-homeless assistance programs, Jereon Brown, a HUD spokesperson, told CNSNews.com.  According to Brown, the HOPWA &#8220;provides critical resources that reduce homelessness and provide affordable housing for economically vulnerable households who are living with and are often disabled by HIV infection, poverty, and co-occurring chronic illnesses.&#8221;  The Continuum of Care programs for the homeless are &#8220;designed to provide housing and supportive services on a long-term basis for homeless persons with disabilities (primarily those with serious mental illness, chronic problems with alcohol and/or drugs, and AIDS or related diseases),&#8221; added the spokesperson. &#8220;With 28 percent of the persons using housing under these programs having a demonstrated substance-use disorder, the Strategy specifically calls for programs to prevent homelessness as a step toward recovery from addiction. Finding stable and affordable housing is among the most difficult barriers for individuals in recovery to overcome.&#8221;
> 
> ...


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## KissMy (Aug 23, 2012)

*Krugman is an idiot! - Famous Paul Krugman quotes from 2001 as he was begging the Fed to create the housing bubble.*

*- Die Zeit, Germany: (February 2001) - *During phases of weak growth there are always those who say that lower interest rates will not help. They overlook the fact that low interest rates act through several channels. For instance, more housing is built, which expands the building sector. You must ask the opposite question: why in the world shouldnt you lower interest rates?

*- New York Times: (May 2, 2001) - *"Ive always favored the let-bygones-be-bygones view over the crime-and-punishment view. That is, Ive always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. But I had to face the fact that speculative bubbles usually are followed by recessions. My excuse has been that this was because the policy makers moved too slowly  that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum. That was why I, like many others, was frustrated at the smallish cut at the last Federal Open Market Committee meeting: I was pretty sure that Alan Greenspan had the tools to prevent a disastrous recession, but worried that he might be getting behind the curve.

However, lets give credit where credit is due: Mr. Greenspan has cut rates since then. And while some of us may have been urging him to move even faster, the Feds four interest-rate cuts since the slowdown became apparent represent an unusually aggressive response by historical standards. Its still not clear that Mr. Greenspan has caught up with the curve  lets have at least one more rate cut, please  but the interest-rate cuts do, cross your fingers, seem to be having an effect.

If we succeed in avoiding recession, this will mark a big win for let- bygones-be-bygones, and a big loss for crime-and-punishment. And that will be very good news not just for this business cycle, but for business cycles to come."

*- CNN: (July 18, 2001) - *KRUGMAN: I think frankly its got to be  business investment is not going to be the driving force in this recovery. It has to come from things like housing, things that have not been (UNINTELLIGIBLE).

DOBBS: We see, Paul, housing at near record levels, we see automobile purchases near record levels. The consumer is still very much in this economy. Can he or she  or I should say he and she, can they bring back this economy?

KRUGMAN: Well, as far as the arithmetic goes, yes, it is possible. Will the Fed cut interest rates enough? Will long-term rates fall enough to get the consumer, get the housing sector there in time? We dont know

*- CNN: (August 8th, 2001) - *KRUGMAN: Im a little depressed. You know, inventories, probably thats over, the inventory slump. But you look at the things that could drive a recovery, business investment, nothing happening. Housing, long-term rates havent fallen enough to produce a boom there. The trade balance is going to get worst before it gets better because the dollar is still very strong. Its not a happy picture.

*- New York Times: (August 14, 2001) - *Consumers, who already have low savings and high debt, probably cant contribute much. But housing, which is highly sensitive to interest rates, could help lead a recovery. But there has been a peculiar disconnect between Fed policy and the financial variables that affect housing and trade. Housing demand depends on long-term rather than short-term interest rates  and though the Fed has cut short rates from 6.5 to 3.75 percent since the beginning of the year, the 10-year rate is slightly higher than it was on Jan. 1. Sooner or later, of course, investors will realize that 2001 isnt 1998. When they do, mortgage rates and the dollar will come way down, and the conditions for a recovery led by housing and exports will be in place.

*- New York Times: (Sept. 14, 2001) - *The broken-window fallacy by professor Paul Krugman after 9/11: "Ghastly as it may seem to say this, the terror attack  like the original day of infamy, which brought an end to the Great Depression  could do some economic good." He went on to note how rebuilding would stimulate the economy by business investment and job creation.

*- New York Times: (October 7, 2001) - *Post-terror nerves aside, what mainly ails the U.S. economy is too much of a good thing. During the bubble years businesses overspent on capital equipment; the resulting overhang of excess capacity is a drag on investment, and hence a drag on the economy as a whole.

In time this overhang will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. But it seems inevitable that there will also be a fiscal stimulus package

*- New York Times: (Dec 28, 2001) - *"The good news about the U.S. economy is that it fell into recession, but it didnt fall off a cliff. Most of the credit probably goes to the dogged optimism of American consumers, but the Feds dramatic interest rate cuts helped keep housing strong even as business investment plunged.


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## waltky (Aug 27, 2012)

Granny says she ain't got dat kinda money - make dem politicians an' Wall St. bankers an' rich company owners dats been outsourcin' our jobs an' not payin' dey's fair share o' taxes pay fer gettin' us into dis mess...

*U.S. Debt On Track to Hit $16 Trillion Within Week*
_August 26, 2012  - The federal governments debt could hit an unprecedented $16 trillion this week while the Republican Party is holding its national convention in Tampa, Fla.in a hall that will prominently feature a running debt clock._


> At the close of business on Thursday, Aug. 23, according to the U.S. Treasury, the federal governments debt stood at $15,976,519,029,144.14. That left it $23,480,970,855.86 short of the $16 trillion mark.  So far in this fiscal year (from Oct. 1 through Aug. 23), the debt has grown by an average of $3,616,398,477.40 per calendar day ($1,186,178,700,586.99 divided by 328 days). Were the debt to grow at that pace in the week following last Thursdays close of $15.976 trillion, it would hit $16 trillion this Thursday--the day Mitt Romney is scheduled to give his speech accepting the Republican presidential nomination.
> 
> However, the debt does not grow in a steady, unbroken daily pace. Instead, it expands and retracts from day to day during the business week depending on the value of the bonds the U.S. Treasury sells and redeems. On a day that the Treasury derives more revenue from selling bonds than it pays out to redeem bonds, the debt increases.  Last Wednesday, for example, the debt actually declined by almost $9.7 billion--from $15,970,134,937,605.00 to $15,960,468,522,111.20as the Treasury redeemed bonds of greater value than it sold. However, on Thursday, the debt increased by slightly more than $16 billion, ending that day at $15,976,519,029,144.14.
> 
> ...


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## waltky (Nov 1, 2012)

We're runnin' outta money - again...

*Treasury says debt limit will be hit by late 2012*
_Oct 31, 2012  WASHINGTON - Government will employ "extraordinary" measures to keep functioning if necessary_


> U.S. Treasury officials say they still expect the government will hit the current debt borrowing limit at the end of this year. But they say they can employ "extraordinary" measures that they have used in the past to keep the government functioning until sometime early next year.
> 
> In a statement, Treasury Assistant Secretary Matthew Rutherford said that Treasury would employ the same types of procedures it has used in the past to keep borrowing under the current debt limit of $16.39 trillion. The nation's debt currently stands $16.16 trillion.
> 
> ...


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## KissMy (Nov 1, 2012)

Failure to raise the debt ceiling in time will cause another credit downgrade for US government treasuries.


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## waltky (Nov 7, 2012)

Granny says, "There dey go again - gettin' us deeper an' deeper in debt...

*Harry Reid on Raising Debt Limit to $18.794T: Well Raise It*
_November 7, 2012 - Senate Majority Leader Harry Reid (D-Nev.) said on Wednesday that if the $16.394 current legal limit on the federal government's debt must be raised in the next few months by another $2.4 trillion, Well raise it."_


> That would set the debt limit at $18.794 trillion.  During a Capitol Hill press conference on Wednesday, CNSNews.com asked: Senator Reid, the Treasury Department said last week that we will hit the debt ceiling again near the end of the year. Are you preparedwill you support"  I dont think the debt ceiling will come after the first of the year, Reid said. But please everyone accept this: They tried it beforethey, the Republicans.
> 
> They tried it before  Were going to shut down the government, and were not going to raise the debt ceiling, he said. If they want to go through that again, fine."  But were not going to be held subject to something that was done as a matter of fact in all previous administrations, Reid said.
> 
> ...


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## waltky (Nov 27, 2012)

Granny says between him an' Mitch McConnell she don't which one is the bigger horse's patoot...

*Rand Paul: I Won't Break the No-Tax-Increase Pledge I Made to the People*
_November 27, 2012  - While some Republicans have indicated they may break their no-tax-hike pledge, Sen. Rand Paul (R-Ky.) is not among them:  "I made a pledge to the people of Kentucky that I'm not raising taxes. I took a pledge. I signed a statement, an oath that I wouldn't raise taxes, and I'm going to adhere to it," Sen. Paul told Fox New's Greta Van Susteren Monday night._


> In fact, if Paul had his way, he says he'd lower taxes:  "I think you should balance budgets, not spend more than comes in, and I think you should lower taxes, not raise taxes. In fact, if you want to stimulate the economy, I'm for cutting tax revenues. All these Republicans who want to give up their taxpayer pledge and raise taxes, I'm the opposite. I want to lower taxes because that's how we'd get actually more economic growth and maybe more revenue, if you cut tax rates.
> 
> Paul says the only way he'd raise tax revenue is through economic growth: "You don't have to raise rates or even close loopholes," he said. "If your economy was growing -- you know, when the economy was growing for four years after the Bush tax cuts, we had plenty of revenue. Revenue went down when the recession came.  "The reason we have a lack of revenue in Washington is too much spending and no economic growth. So we don't have economic growth. If the economy were growing at 4 percent right now, we'd have plenty of revenue. But you don't get the economy to grow by raising taxes. That's what they want to do now, and I think it's absolutely the wrong thing to do."
> 
> ...



*Treasury Instructs Americans on Making Contributions to Reduce Public Debt  by Check or Credit Card*
_November 27, 2012   The U.S. Department of Treasury uses it pay.gov website to allow the public to make payments to the federal government, including making contributions to reduce the public debt using checks or credit card._


> The public is doing so in record numbers  in fiscal year 2012 the annual contributions more than doubled from the previous year with a total of $7,749,618.27.  Visitors to the agencys treasurydirect.gov can access the gift contributions dating back to 1996 when Americans gave almost $2 million to pay down the public debt. On that website is a link allowing visitors to learn how to make a contribution to reduce the debt.
> 
> Visitors who click on the link will be directed to pay.gov where they can register and use a checking or savings account or credit card to contribute online.  Visitors are also provided with a mailing address if they prefer to mail a check payable to the Bureau of Public Debt.
> 
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## waltky (Nov 28, 2012)

Granny says, "Big deal - dat don't even pay the interest onna debt...

*Voluntary Contributions To Pay National Debt Hit Record: 0.00005% of Total*
_November 27, 2012  The U.S. Treasury Department website states that voluntary contributions to pay down the national debt in fiscal year 2012 reached a record amount of $7.7 million, which is 0.00005 percent of the total national debt of $16,309,738,056,362.44, or approximately $16.3 trillion._


> In addition, in fiscal year 2012 -- Oct. 1, 2011 through Sept. 30, 2012 -- the debt of the U.S. government climbed by a total of $1,275,901,078,828.74, or $1.3 trillion, according to the Treasury Department. That translates into about $3.5 billion per day, or $145,833,333.00 per hour, $2,430,555.00 per minute, and $40,509.00 per second.  Based on those numbers, the federal government spent the $7.7 million in voluntary contributions to pay down the national debt in approximately 3 minutes and 10 seconds.
> 
> In fiscal year 2012 the annual voluntary contributions totaled more than double from the previous year's total of $3,277,369.23, tallying up to $7,749,618.27.  Visitors to the agencys treasurydirect.gov can access the gift contributions dating back to 1996 when Americans gave almost $2 million to pay down the public debt. On that website is a link allowing visitors to learn how to make a contribution to reduce the debt.
> 
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## waltky (Nov 30, 2012)

Granny says somebody needs to take Obama's credit card away from him...

*Obama&#8217;s Now Borrowed More Than All Presidents from Washington to W*
_November 30, 2012  - The federal government has now borrowed more money during Barack Obama&#8217;s time as president than it did in the period lasting from the time President George Washington took the oath office until July 2, 2001, more than five months into the first term of President George W. Bush._


> At the close of business on Jan. 20, 2009, when President Barack Obama was inaugurated, the national debt stood at $10,626,877,048,913.08, according to the Treasury. At the close of business this Thursday, it stood at $16,323,083,449,604.98.  That means the debt has increased $5,696,206,400,691.90 during Obama&#8217;s presidency.
> 
> On July 2, 2001, more than five months after President George W. Bush entered office, the national debt was $5,693,220,327,798.14, according to the Treasury. By the close of business on July 3, 2001, it had risen to 5,698,195,769,465.40. Since then, the debt has never again dropped below $5,696,206,400,691.90&#8212;the amount it has increased in less than one full term of Obama.  (Between late 1999 and the middle of 2001, as federal revenues sometimes exceeded expenditures, the debt fluctuated back and forth over the $5.696 trillion mark--only to finally pass that threshold, without retrenching, between July 2 and 3, 2001.)
> 
> ...



See also:

*Give Obama Power to Personally Lift Debt Limit to Infinity*
_November 30, 2012  - House Minority Leader Nancy Pelosi (D-Calif.)  said on Friday that Congress should hand over to President Barack Obama the power to unilateral increase the limit on the U.S. government's debt._


> In effect, under the plan Pelosi is endorsing, the only limit on the national debt would be President Obama's willingness to borrow money in the name of American taxpayers.  At a Friday press conference, a reporter asked Pelosi if she agreed with a proposal made by Treasury Secretary Timothy Geithner that Congress give Obama the power to unilaterally increase the debt limit.  "Yes," she said.
> 
> The Constitution expressly gives the power to borrow money to Congress--not the president. Article 1, Section 8, Clause 2 says: "Congress shall have power ... To borrow money on the credit of the United States."  When he met with members of Congress on Thursday to discuss a deal to avoid the so-called fiscal cliff that is set to occur at the end of this year, Secretary Geithner suggested that Congress give Obama the personal power as president to lift the legal limit on the federal government's debt.
> 
> ...


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## waltky (Dec 15, 2012)

Granny says, "How two-faced ya wanna get here?...

*'Zero' Chance Obama Would've Given Bush Unlimited Borrowing Power*
_December 13, 2012   House Speaker John Boehner (R-Ohio) said there was zero chance that Senate Majority Leader Harry Reid (D-Nev.) and then-Sen. Barack Obama would have supported giving President George W. Bush the power to unilaterally raise the debt ceiling, as they propose giving the chief executive today._


> When negotiating to avert looming across-the-board tax hikes and spending cuts at the end of the year President Obama has asked for permanent and unilateral authority to raise the debt limit, in addition to calls for a $1.6 trillion tax increase.  During his weekly press conference on Capitol Hill Thursday, Boehner was asked if united support from Democrats, including Reid to the presidents proposal would complicate his efforts next year in the House.  Do you think that Senator Reid or then-Senator Obama would have ever given to President George W. Bush the unlimited ability to raise the debt limit? Boehner said.  Theyre talking about doing it now, a reporter replied.  I know theyre talking about doing it now, Boehner said, jokingly. Do you think theres any chance that Senator Reid or then-Senator Obama would have done that?
> 
> Zero! he said.  Congress is never going to give up our ability to control the purse, Boehner said.  And the fact is that the debt limit ought to be used to bring fiscal sanity to Washington, D.C.  Boehner has advocated using the debt ceiling, which currently stands at $16.394 trillion and is expected to be met near the end of the year, as a bargaining chip in the fiscal cliff negotiations to obtain dollar-for-dollar cuts in spending. As of the close of business Tuesday, the total public debt stood at $16.376 trillion, leaving less than $20 billion before the ceiling is met.
> 
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## waltky (Dec 17, 2012)

Granny says Chinese gonna leave us holdin' the bag, are divesting from Treasury bills...

*$5.5T: U.S. Foreign Debt Hits New High; $47,482 Per Full-Time Worker; Up 78% Under Obama*
_December 17, 2012 - The amount of money the U.S. government has borrowed from foreign interests hit a record high at the end of October, according to data released today by the U.S. Treasury._


> As of Oct. 31, the U.S. government owed $5,482,200,000,000 to foreign interests, according to the Treasury. That was up from $5,476,200,000 as of Sept. 30.  The foreign debt of the U.S. government equaled $47,482 for each of the 115,459,000 full-time workers (including full-time government workers) there were in the United States in October, according to data published by the Bureau of Labor Statistics. Similarly, it equaled $47,706 for each of the 114,916,000 households the Census Bureau estimated there were in the United States in September.
> 
> At the end of January 2009, when President Barack Obama was inaugurated, the U.S. government owed $3,071,700,000,000 to foreign interests. Since then the U.S. governments debt to foreign interests has increased by $2,410,500,000,000or 78 percent.  As of the end of October, entities in Mainland China remained the largest holders of U.S. government debt, with $1,161,500,000,000 in holdings. However, over the past year, the Mainland Chinese have actually decreased their holding of U.S. government debt. As of the end of October 2011, entities in Mainland China had owned $1,256,000,000,000 in U.S. government debt. Since then, they have dropped $94,500,000,000 of their U.S. government debt holdingsor 7.5 percent.
> 
> ...



See also:

*Fiscal cliff: 2014 budget already delayed*
_12/16/12 - The year-end budget impasse is being felt already in 2014._


> The White House confirmed to POLITICO Sunday that it has deliberately slowed preparations for President Barack Obamas fiscal 2014 budget until it has a better fix on the current talks with Republicans in Congress.  The customary late November pass-backs from the Office of Management and Budgettelling federal agencies what resources they can expect to get in the the presidents requesthave been put on hold. Yes.  OMB has held off on pass-backs to agencies to determine if adjustments will be needed based on the current negotiations, an administration official said after POLITICO asked about the delay.
> 
> The likely result is the 2014 budget itself will also be laterpossibly slipping into March when a stop gap spending bill to keep the government running for the current fiscal year is also slated to expire.  At one level, the self-imposed pause by OMB makes sense given that so much is up in the air right now. But it also shows how disruptive the impasse has become, sending out ripples that impact a wider circle of government.  House-Senate talks over a five-year farm bill are caught in the same quandary. Differences remain over the commodity and nutrition titles, but negotiators also seem reluctant to make the necessary compromises until they see a clear path for the bill to move forward.
> 
> ...


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## waltky (Dec 18, 2012)

Granny says like she always tellin' ya'll - let the rich folks pay fer it, dey can afford it...

*Boehners House Has Increased Debt $18,944 Per Household*
_December 18, 2012  - Under the leadership of House Speaker John Boehner (R.-Ohio), the 112th House of Representatives has thus far approved legislation that has increased the debt of the federal government by $2,176,949,774,695.46or approximately $18,944 for per American household._


> The 112th House of Representatives has achieved this in a little more than 20 months timeand it may not be done yet enacting laws to approve new federal borrowing and spending.  The 112th House came into power on Jan. 5, 2011, electing Rep. John Boehner as its speaker on that day.  The Boehner-led House did not have a direct impact on the fiscal policy of the federal government until March 4, 2011, when a continuing resolution enacted on Dec. 21, 2010 in the lame-duck session of the previous Congress expired.
> 
> On March 1, 2011, Boehner and President Barack Obama cut their first short-term federal spending deal. That deal took effect on March 4, 2011. Since then all new borrowing and spending by the federal government has been approved in laws enacted by Boehners House consistent with its constitutional power to control the borrowing and spending by the federal government.
> 
> ...



See also:

*Washington regions rising wealth brings new luxury brands and wealth managers*
_With plenty of two-income highly educated families, the D.C. region already has a reputation as one of the most affluent in the country. But the area is fast emerging as a home to the truly rich as well._


> High-end luxury retailers are responding. Brands such as Aston Martin are expanding their operations into the area  betting, for instance, that there will be plenty of customers who can afford the $280,000 sports car James Bond drives in the movies. Nearby in Tysons, a Saint Laurent store and the high-end electric car maker Tesla are also set to open their doors.  The regions top one percent of households make more than a half million dollars yearly  far more than the national average for the one percent, according to a study of Census data by Sentier Research, an Annapolis-based data analysis firm.
> 
> And these top earners  many of whom are from dual-income households and benefit from federal contracting  weathered the recession better than their counterparts in some other metropolitan areas and the nation. More are moving beyond comfortable affluence to a much higher standard of living.  What is unique to D.C. is that there has been a change in the complexion of wealth here. There didnt used to be much of this ultra-high-net-worth business here and now there is, said Susan Traver, the regional president of BNY Mellon Wealth Management.
> 
> ...


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## waltky (Dec 26, 2012)

Granny says we oughta welch out on all dem countries dat take our money den hold anti-American demonstrations...

*US fiscal cliff: Treasury to act to delay debt limit*
_26 December 2012 - Mr Geithner said the moves were needed to avoid default on legal obligations_


> The US Treasury is to begin taking extraordinary measures to delay reaching a 31 December borrowing limit.  Treasury Secretary Timothy Geithner said it would take accounting measures to save about $200bn to prevent reaching the $16.4tn borrowing limit.  The move comes as the so-called "fiscal cliff" looms.  This is a round of tax increases and huge spending cuts due to come into force in January but over which the Democrats and Republicans are stalled.
> 
> 'Default'
> 
> ...


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## Brawd (Dec 31, 2012)

we recovered from the great depression and the depression in the early 80's we will this one too, because it's mostly propaganda.


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