We are going to hit a financial crisis

[La_Serpiente]

I am watching CSpan right now and it is crazy. The House is going to pass a 350 billion dollar transportation bill, there is a 400 billion dollar Medicare bill, a MASSIVE Energy Bill, and Defense and Iraq spending. I am all for infrastructure spending if we do it in the right way. However, it is about time we start investing in our country. We have had three consecutive tax cuts and and might go to the fourth one.

This is just crazy. Sooner or later, we're going to hit a crossroads where we will be at fiscal insolvency. If Bush and the Republican Congress is re-elected, I am moving to either Canada or to some South American country because I don't want to be here when the crash happens.

[Brucey]

1. Robert Rubin and other economists

have said that we are already in trouble and it would take a lot to get us out of it. What is will take is not possible yet, given the public's greed. The next congress or the one after that will be in big, big trouble. Perhaps this is what the repugs want.

[RUMMYisFROSTED]

3. Yep, that's what they want.

They're just picking up the loose change left behind after the bank has been robbed.

[NewJeffCT]

17. yes, that is what the Repugs want..

I've heard Paul Krugman refer to it as "starving the beast" - they intend to run up the deficit so high that in a few years, they will force a huge crisis and the federal government (the beast) will have to slash & burn domestic programs, including Medicare, just to stay afloat.

[virtualobserver]

2. Canada does look attractive, but our problems would drag them down.

Plus, the upcoming "War in Canada" could be unpleasant. I'm thinking more along the lines of Mars or Jupiter.

[Spazito]

4. "War in Canada"?

what war? Is this the name of a book or something?

[virtualobserver]

7. just a mock quote, the sequel to the "War In Iraq" miniseries on CNN

The US will not be able to afford expensive distantly fought wars designed to distract for too much longer.

[Spazito]

11. LOL and thanks, I can now put away my maple syrup bombs again!

*

[virtualobserver]

12. mmmmmmmm.......maple syrup bombs..........

all wars should be fought with them.

[Media_Lies_Daily]

5. We're already at fiscal insolvency. Check how many times the budget...

...limit has been raised to accommodate additional borrowing.

[ramapo]

6. Sooner or later...

the fiscal house of cards will tumble. Until then it will be like lemmings off the cliff. I don't see any way to change the mindset or direction. Too much plain old malarky floating around on everything from taxes to terrorism.

I don't see how current trends can be maintained. Just like in Terminator, Judgement Day cannot be stopped.

[mhr]

10. I Agree, The Level Of Hypocrisy And Corruption Is Pandemic

Without an infusion of morality, ethics, and integrity, we are down for the slow count.

[ScreamingMeemie]

8. ..and the dollar is fading on the international market...

It is a very scary time.

[Spazito]

9. Here is an alarming article re Citibank and the dollar

Citibank Closes All Long Dollar Positions as Unit Plunges

NEW YORK -- Citibank (NYSE:C - News), one of the largest traders in global foreign exchange markets and biggest dollar bulls, closed all its existing long dollar positions Tuesday.

The move, on the day the dollar plunged to record lows against the euro, is significant in that the dollar's slide has forced one of the most aggressive dollar bulls in the market to temper its optimism toward the currency.

In a research note, Citibank currency analysts cite three specific reasons: the U.S. decision Tuesday to impose temporary quotas on certain textile imports from China, the dollar's failure to respond to positive U.S. economic data and the breakdown of key technical levels such as dollar index support at 90.56.

more

http://biz.yahoo.com/djus/031118/1639001518_1.html


( Found this definition of long positions - Unlike long positions, which one expects to rise in value, short positions are taken in those securities the manager anticipates will decrease in value.)

[MUAD_DIB]

13. If the crash happens here

it will pull Canada right along with us: biggest trading patner and all.

I am not sure about SA, but I think that and fall here will hurt them considerably.

[Spazito]

14. Actually, our biggest exports to the US are in oil and gas...

and the US needs that regardless of anything. We would be hurt by sales in lumber and cattle, oh, wait, Bush has already tried that yet we are doing pretty good, surplus and all.

[ArkDem]

15. Yes, those south american

governments are true models for stability.

[antigop]

16. Look at what Warren Buffett is doing about the trade deficit

>>Warren Buffett, the world's second richest man, said he was concerned with the size of the U.S. trade deficit and was investing in foreign currency in response to the problem.
>>

http://www.forbes.com/newswire/2003/10/27/rtr1123561.html