European Tribune - Community, Politics & Progress.

Cutting social spending is urgent

by Jerome a Paris
Fri Jul 23rd, 2010 at 02:08:10 PM EST

Because the money is still urgently needed elsewhere:

US financial system support up $700 bln in past year-watchdog
WASHINGTON, July 21 (Reuters) - Increased housing commitments swelled U.S. taxpayers' total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on Wednesday.

No vote, no discussion, no complaints by bond vigilantes. It just happened. But our countries are broke because of supposedly unsustainable commitments to pay pensions to workers (who have already paid for them), education for kids or public infrastructure.

Right.

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Cutting social spending is urgent | 6 comments (6 topical, 0 editorial, 0 hidden)

Re: Cutting social spending is urgent (none / 1)

We hear your cynicism. So what is the solution?

by shergald on Fri Jul 23rd, 2010 at 02:38:45 PM EST

Mine is Qualitative Easing (4.00 / 2)

As Buiter, Taleb and Hudson point out, if debt can't be paid, it won't be paid.

So a Debt/Equity swap is the way to go via Unitisation of pools of affordable rentals.

Modern conservatives engage in one of man's oldest exercises in moral philosophy: the search for a superior moral justification for selfishness.Galbraith

by ChrisCook (cojockathotmaildotcom) on Fri Jul 23rd, 2010 at 03:16:54 PM EST
[ Parent ]

well, in this case (4.00 / 3)

just getting the information out could make a difference.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Fri Jul 23rd, 2010 at 03:21:26 PM EST
[ Parent ]

Re: Cutting social spending is urgent (4.00 / 3)

So what is the solution?

Buy all these mortgages, sell them at market price and tax the rich to cover the losses.

by kjr63 on Sat Jul 24th, 2010 at 08:58:15 AM EST
[ Parent ]

Re: Cutting social spending is urgent (none / 1)

The solution has been available in places like Sweden since the 1930s. Sliding scale taxation, socialism (a combination of communism and capitalism), and disparagement of greed as an economic principle.

by shergald on Sat Jul 24th, 2010 at 03:08:16 PM EST
[ Parent ]

Re: Cutting social spending is urgent (none / 0)

I don't think Sweden is a solution. The left is as much a tool of finance capitalism as the right. In some cases even more. The property prices have skyrocketed in Sweden last 15 years and the households are as much in debt (80% of GDP) as they are everywhere else. After all, practical social democracy is just replacing financial oligarchy with combined political-financial oligarchy. They have the same pro-financial, anti-labour economics.
The left is so brainwashed. They are all about "values." "The worker" is "pure" as opposite to "a capitalist," who is full of "greed." So labour should not demand money from the wealth they create. If they do, that is "greed." They should "protect" themselves, give all money away to "capitalist" by paying rents, taxes and monopolistic fees. Leave only enough for food themselves and work hard until 75 years old. That way they will enjoy "moral purity" as opposite to "greedy" capitalist who can only enjoy mortal life.

by kjr63 on Sun Jul 25th, 2010 at 10:33:27 AM EST
[ Parent ]

Cutting social spending is urgent | 6 comments (6 topical, 0 editorial, 0 hidden)

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