To begin with if Americans seriously want to address the deficit, STOP BERNANKE.
By Hao Li
December 4, 2010 5:31 PM EST
...Fed Vice Chairwoman Janet Yellen said the Fed is "open to further action if it turns out the economy remains sufficiently weak or if [Fed officials are] sufficiently worried about further disinflation in the medium-term."...
The post election celebration by Bernanke is bringing the value of the USA dollar down. What does that do to OUR NATIONAL DEBT? Anyone want to guess? The geniuses are pushing all kinds of monetary policies and leaning on China and don't even stop to realize what a really cheap USA dollar is going to do to the nation's debt.
The USA has $11 Trillion in bonds and USA securities 'out there.' Does everyone realize what is going to happen to the USA dollar if Bernanke 'goes slap happy' again?
THE EXCHANGE RATE MATTERS.
As far as the tax cuts. DON'T. Let the Bush Era Tax Cuts expire. The Republicans are holding the country's Middle Class hostage and that is nothing more than extortion. The Bush Era Tax Cuts need to expire and when the Congress returns in January they can go to work on the entire restructuring of the USA deficit with the Simpson/Bowles Commission in hand. There is no reason to make any tax cuts permanent until the nation starts a dialogue about the future.
The Simpson/Bowles Commission could not be agreed upon and there needs to be separate leglislation regarding each and every aspect of the commission's findings. It is hideous to think one legislative measure is going to resculpture every aspect of NEEDED CHANGE to end the deficit. That would be an outrageous measure and there is no way it can be that comprehensive, the USA infrastructure is too complex and intricate. DO NO HARM is the first concept that comes to mind.
The Deficit Commission has created a 'soft landing' for the restructuring. I think there is time to review the findings and bring several pieces of legislation before the Congress to begin the process.
There is an aspect to obstruction of the new majority in the Senate (41-59). The 59 Democrats are now a miniorty in their own majority. They can't get anything done and there are some real reasons for that and it revolves around the new extremism by the GOP which started the day of President Obama's Inauguration. The Republicans are destroying the USA government as I write this and no one is addressing that. Their obstructionism is forcing citizens to surrend to the 'idea' they have no choice, but, it goes beyond that and it is that reality I will address tomorrow.