Global Financial collapse

[JERRY2KONE]

You missed one very big thing in your sumation. The US Gov is the biggest employer in the USA, plus they hold contracts with some of the largets private companies across the nation. With the projected budget cuts we are about to see one of the biggest layoffs in our history to reach the balanced budget that Obama wants to see before he leaves office. When these cuts go into effect there will be another 1 million people dumped into the unemployment ranks, along with another 1million people laid off by Gov contractors. With all of these layoffs the US Gov will also lose revenue and have to raise taxes on those who are left still working. These budget cuts are going to hit so deeply that things can only get worse than they already are. Meaning a plunge in the overall value of the US $. Now I am not some economic genious or stock market whore, but this all looks bad to me for our country, and I really do not see any way to avoid it either. Raising the countries debt ceiling year after year has got to stop. Our Gov is writing check that we no longer have the assets to back them up. The next step will be selling off huge amounts of our country to foeign countries.

[Finnster]

Originally Posted by JERRY2KONE

You missed one very big thing in your sumation. The US Gov is the biggest employer in the USA, plus they hold contracts with some of the largets private companies across the nation. With the projected budget cuts we are about to see one of the biggest layoffs in our history to reach the balanced budget that Obama wants to see before he leaves office. When these cuts go into effect there will be another 1 million people dumped into the unemployment ranks, along with another 1million people laid off by Gov contractors. With all of these layoffs the US Gov will also lose revenue and have to raise taxes on those who are left still working. These budget cuts are going to hit so deeply that things can only get worse than they already are. Meaning a plunge in the overall value of the US $. Now I am not some economic genious or stock market whore, but this all looks bad to me for our country, and I really do not see any way to avoid it either. Raising the countries debt ceiling year after year has got to stop. Our Gov is writing check that we no longer have the assets to back them up. The next step will be selling off huge amounts of our country to foeign countries.

I do agree that gov't cutting jobs has had a real effect. The July jobs # (+18,000 net) showed much better #'s for private sector, but huge job cuts in the public sector dragged the #'s down for the low net #. I agree with you a lost job is a lost job. I don't think its wise policy either that so many of these job losses come from police, fire and teachers.

I would say tho, this is being driven much more by the right than the left. It was the Tea Party's balanced budget amendment that was a big player in the debt fight. Obama has been actually pretty right leaning when its come to govt jobs (despite whats said on the campaign trail.) He's frozen fed salaries for the next few years. He's directed strong agency budget cuts for next year. There is no doubt this will have an impact on families employed by the govt. Some of my family have jobs in the Fed, and being told not to expect raises for years can have a very profound impact.

There is no way in hell the budget is going to be balanced by 2016. Obama also says a lot of lofty shit that never comes true. Gitmo is still open, and we're still in Afghan and Iraq last time I checked. ;)
There may be ways to do it, but its politically and economicly suicidal. No reason to do it either. Debt needs to be put under control, but no reason it needs to be balanced now.

The budget deals that have been struck on the Fed level have tended to be geared toward the future rather than today however from what I've seen. Just gotta get the econ going before tomorrow ends up turning into today....