Fair and Balanced

275
Thu, May 10, 2012 - 3:35pm

I stumbled across this video today and thought it could serve as a basis for an interesting discussion.

Note that this presentation was made by a lady named Caroline, who is a self-described "federal government employee" and "member of the American Federation of Government Employees". Also note that, as I type this, it has a total of 80 views. (I hope that she has enabled Adsense as she is about to get a few hits!)

The first seven minutes or so are facts that we can all agree upon. The deficit is there and to cut it would require some significant changes to the federal structure. Then, at around the 7:00 mark, Caroline proposes her remedies. This is the crux of the matter and be sure to hear her out before you respond.

On one side of the argument, the deficit is not sustainable but government is vital, perhaps even too small, and it needs more funding through higher taxes. These extra taxes will close the deficit.

On the other side of the argument, the deficit is not sustainable and government spending needs to be trimmed and restructured. This slowing of government growth and outright reduction in spending will close the deficit.

My questions to you are:

  • How do we reconcile these two points of view?
  • Is it possible to achieve the level of political cooperation needed to make it happen?
  • Can we discuss this in a civil manner here on TFMR? If not, how can we expect the politicians to do any better?
The Federal Deficit Explained
  • Bonus question: What is my point in starting this discussion?

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  275 Comments

Big Buffalo
May 10, 2012 - 4:57pm

JPMorgan

Down 5% in after market. . .somehow that makes me feel a little better.

Tube
May 10, 2012 - 4:58pm

Fed - Mend it or end it

If anyone has a few hours to kill, here are the hearings of the Financial Services Committee.

Ron Paul Hearing on The Fed: Mend It or End It? PART 1 -- 5/8/12
Ron Paul Hearing on The Fed: Mend It or End It? PART 2 -- 5/8/12
Orange
May 10, 2012 - 4:58pm

The Morgue in trouble

Out of nowehere, JPM announced 40 minutes ago that it would hold an unscheduled 5pm call to coincide with the release of its 10-Q. Rumors were swirling as to why. The reason is as follows:

  • JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES - "Fortress balance sheet"
  • JPMORGAN SAYS LOSSES ARE IN SYNTHETIC CREDIT PORTFOLIO - but, but, net is NEVER, EVER Gross.
  • JPM WOULD NEED $971M ADDED COLLATERAL IF RATINGS CUT ONE-NOTCH
  • JPM WOULD NEED $1.7B ADDED COLLATERAL IF RATINGS CUT 2 NOTCHES - how about three notches?
  • JPMORGAN: MAY HOLD SOME SYNTHETIC CREDIT POSITIONS LONG TERM - "Level 3 CDS FTW:

All of this is coming form the just filed 10-Q. The full link is here.Call dial in: (866) 541-2724 in the U.S. and Canada; (706) 634-7246 for international.

from zerohedge I am calling in now
recaptureamerica
May 10, 2012 - 4:59pm

JPM Crashing After It

JPM Crashing After It Convenes Emergency Call To Advise Of "Significant Mark-To-Market" Losses https://www.zerohedge.com/news/jpm-crashing-after-it-convenes-emergency-...

recaptureamerica
May 10, 2012 - 4:59pm

Maybe

They eat their own...

Be Prepared
May 10, 2012 - 5:02pm

May JPM Burn in...

.... well... you know where...

.... but, wait, up in the sky.... it's a bird.... it's a plane... no, it's Super Bernank...

He won't let them FAIL... that's why we have the "TBTF" designation.

Orange
May 10, 2012 - 5:03pm

Where are you Morgue

5:02 still nobody. Are you Obummer

Orange
May 10, 2012 - 5:03pm

Where are you Morgue

5:02 still nobody. Are you Obummer

Groanerrecaptureamerica
May 10, 2012 - 5:03pm

lovely!

It couldnt happen to a more corrupt outfit.. Maybe they will have to cover their shorts in silver and gold now.

OC15
May 10, 2012 - 5:03pm

Dear Caroline

Under this current system, money IS debt; so the idea of paying it off or having sustained budget surpluses is utterly ridiculous. You cannot formulate a solution to a problem in a system where the system itself IS the problem.

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