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PoliGAF 2016 |OT5| Archdemon Hillary Clinton vs. Lice Traffic Jam

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H

hawk2025

Member
TyrantII said:
4% wouldn't be bad. People tend to focus on prices, but look over the fact that it moves stagnant money in bonds. Companies have to shift to looking for more revenue, rather focusing just on growth (mergers) and keeping huge piles of cash on hand as they are now; less inflation eat it away.

It also should be good for wages in a competitive job market, although realistically I think employment pricing is far too captured by various industries to push up wages much.

Two of the biggest issues with the economy are too big to fail companies dictating supply/demand, and the lack of liquidity; money pooling in the hands of the 0.01% and fortune 500 behemouths. Wealth isn't created from stashing cash in low interest sovereign bonds, in nations that aren't using it to spend on investments in education or infrastructure.
Click to expand...

Inflation overwhelmingly impacts the poor more than the rich, and makes the distribution of wealth even more unequal.

http://www.sciencedirect.com/science/article/pii/S0165188906000157

The effects of a permanent change in inflation on the distribution of wealth are analyzed in a general equilibrium OLG model that is calibrated with regard to the characteristics of the US economy. Poor agents accumulate savings predominantly in the form of money, while rich agents participate in the stock market and accumulate equity. Higher inflation results in higher nominal interest rates and a higher real tax burden on interest income. Surprisingly, an increase in inflation results in a lower stock market participation rate; in addition, savings decrease and the distribution of wealth becomes even more unequal.
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I say stick to 2%.
 
I

Ignatz Mouse

Banned
Here's a random topic that crosses my mind, but I haven't got enough to start an thread:is it worth contrasting Kansas with Illinois? Both are states with horrible budget problems, one a trickle-down experiment, and the other a textbook example of tax and spend. Liberals I know like bringing up Kansas despite living in Illinois. Anyone have thoughts?
 
Z

zou

Member
Bit late to the Trump debt comment, but did he seriously suggest buying back debt once interest rates rise? Rather than retiring high interest paying bonds when rates are low?

It makes sense as an external buyer I guess, but not as the issuer.
 
B

B-Dubs

No Scrubs
Ignatz Mouse said:
Here's a random topic that crosses my mind, but I haven't got enough to start an thread:is it worth contrasting Kansas with Illinois? Both are states with horrible budget problems, one a trickle-down experiment, and the other a textbook example of tax and spend. Liberals I know like bringing up Kansas despite living in Illinois. Anyone have thoughts?
Click to expand...

Illinois is hilariously corrupt. Their governors are more likely to be sent to jail before the end of their term than to actually leave office normally. Probably not the best example.
 
Y

Y2Kev

TLG Fan Caretaker Est. 2009
zou said:
Bit late to the Trump debt comment, but did he seriously suggest buying back debt once interest rates rise? Rather than retiring high interest paying bonds when rates are low?

It makes sense as an external buyer I guess, but not as the issuer.
Click to expand...
It makes sense if you have excess cash and need to reduce debt. We don't.

The price of bonds out there will drop if interest rates rise. If you're looking at some kind of liability management exercise, you could repurchase at 96 or 94 depending on the tenor and coupon. But if you need to finance the purchase of those bonds with NEW BONDS

OMG trump!!!
 
P

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
Ignatz Mouse said:
Here's a random topic that crosses my mind, but I haven't got enough to start an thread:is it worth contrasting Kansas with Illinois? Both are states with horrible budget problems, one a trickle-down experiment, and the other a textbook example of tax and spend. Liberals I know like bringing up Kansas despite living in Illinois. Anyone have thoughts?
Click to expand...

Both can be used as examples for what the far end of their respective political spectrum can do to a local economy.
 
I

Ignatz Mouse

Banned
B-Dubs, I live here. I don't think it can all be blamed on corruption.

Although I do think that there is a real danger in a state dominated by a single party that corruption can take root.
 
B

B-Dubs

No Scrubs
DontBeThatGuy said:
Wait, Trump already walked back raising taxes on the rich? lol.
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He's a weathervane in a hurricane.

Ignatz Mouse said:
B-Dubs, I live here. I don't think it can all be blamed on corruption.

Although I do think that there is a real danger in a state dominated by a single party that corruption can take root.
Click to expand...

Oh I know, I'm just pointing out that it might not be the best foil for Kansas for that reason. Going too far in either direction, left or right, is probably the wrong way to handle economics. Gotta take a little from both sides and find a mix that works, the trick is balancing the recipe.
 
Z

zou

Member
Y2Kev said:
It makes sense if you have excess cash and need to reduce debt. We don't.

The price of bonds out there will drop if interest rates rise. If you're looking at some kind of liability management exercise, you could repurchase at 96 or 94 depending on the tenor and coupon. But if you need to finance the purchase of those bonds with NEW BONDS

OMG trump!!!
Click to expand...

I would argue even with excess cash it wouldn't make sense to retire bonds paying at or below inflation. But yeah, the US obviously isn't going to stop issuing debt so this would just replace low coupons with high(er) ones.
 
J

JesseEwiak

Member
Plinko said:
Both can be used as examples for what the far end of their respective political spectrum can do to a local economy.
Click to expand...

Except Illinois isn't on the "end" - they don't even have a progressive income tax system. I mean, Connecticut's actually a better state to point too if you want to find a "tax and spend" state, but even then, because of balanced budget requirements, it's actually really hard to find states that are uberliberal on taxation.
 
M

Macho Madness

Member
wWr1L82.png
 
O

Owzers

Member
I'm glad Trump was able to forgive Megyn Kelly for being such a sad emotional wreck, it shows he can get past petty controversy.
 
L

lenovox1

Member
Aaron Strife said:
lol remember when people were so sure that the Panama Papers were going to turn up something involving the Clintons.

They're obviously corrupt! But I mean, I dunno guys, Trump doesn't seem so bad.
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This isn't bad. Various media outlets have been through the Panama Papers with a fine toothed comb. If Trump's resort had been acting as a tax haven, we would have known about it by now. Especially as it's been in operation for a decade.
 
R

RustyNails

Member
Ignatz Mouse said:
Here's a random topic that crosses my mind, but I haven't got enough to start an thread:is it worth contrasting Kansas with Illinois? Both are states with horrible budget problems, one a trickle-down experiment, and the other a textbook example of tax and spend. Liberals I know like bringing up Kansas despite living in Illinois. Anyone have thoughts?
Click to expand...
As a fellow Illinois, I think Chicago is not a true case of tax and spend experiment. More accurately, it's a study of tax and raid. The Daley's and governors have run the state's finances into a black hole by raiding all the state pension funds after promising state workers guarantees. The problem is that unions in Illinois are very powerful, and the state Constitution is on their side on the pension issue. They are an integral part of Chicago Democratic machine. The Daley's and Blagovichs' idea of solving the problem is Rob Paul to pay Peter. All our taxes are going into a black hole and the state keeps borrowing with a bad credit and keeps getting downgraded by Moody's. As much as I support the unions, they should make sacrifices just like all the taxpayers in Illinois are. We pay the largest property tax in the nation and the politicians are promising more taxes to come. This is why Rauner was elected: to bring Unions to the table and guess what, the crisis is so bad that we still don't have the fiscal year budget lol. We're gonna have to shut down state agencies and Parks soon.
 
F

Frank the Great

Banned
RustyNails said:
As a fellow Illinois, I think Chicago is not a true case of tax and spend experiment. More accurately, it's a study of tax and raid. The Daley's and governors have run the state's finances into a black hole by raiding all the state pension funds after promising state workers guarantees. The problem is that unions in Illinois are very powerful, and the state Constitution is on their side on the pension issue. They are an integral part of Chicago Democratic machine. The Daley's and Blagovichs' idea of solving the problem is Rob Paul to pay Peter. All our taxes are going into a black hole and the state keeps borrowing with a bad credit and keeps getting downgraded by Moody's. As much as I support the unions, they should make sacrifices just like all the taxpayers in Illinois are. We pay the largest property tax in the nation and the politicians are promising more taxes to come. This is why Rauner was elected: to bring Unions to the table and guess what, the crisis is so bad that we still don't have the fiscal year budget lol. We're gonna have to shut down state agencies and Parks soon.
Click to expand...

Reminds me of NJ in many ways.
 
J

JesseEwiak

Member
RustyNails said:
As a fellow Illinois, I think Chicago is not a true case of tax and spend experiment. More accurately, it's a study of tax and raid. The Daley's and governors have run the state's finances into a black hole by raiding all the state pension funds after promising state workers guarantees. The problem is that unions in Illinois are very powerful, and the state Constitution is on their side on the pension issue. They are an integral part of Chicago Democratic machine. The Daley's and Blagovichs' idea of solving the problem is Rob Paul to pay Peter. All our taxes are going into a black hole and the state keeps borrowing with a bad credit and keeps getting downgraded by Moody's. As much as I support the unions, they should make sacrifices just like all the taxpayers in Illinois are. We pay the largest property tax in the nation and the politicians are promising more taxes to come. This is why Rauner was elected: to bring Unions to the table and guess what, the crisis is so bad that we still don't have the fiscal year budget lol. We're gonna have to shut down state agencies and Parks soon.
Click to expand...

Maybe the Illinois taxpayers shouldn't have spent the last 30 years believing they could have lots of services for not that many taxes? I'm sorry, but I'm sick and tired of that the only contracts that don't matter is those with unions.
 
B

Black Mamba

Member
After he lost the Republican nomination, Sen. Ted Cruz's backers will now reportedly pivot towards trying to gain control of the GOP's platform during the national convention. According to The New York Times, top Cruz aide Ken Cuccinelli wrote in an email to supporters urging them to come to Cleveland in July to "protect against liberal changes to our platform." Cuccinelli confirmed the effort to the Times, telling them that Cruz's backers seek to protect "movement conservatism," including a firming of the party's core positions on abortion and the addition of language regarding transgender bathroom use. "We want to have girls go in girls’ bathrooms," he said, alluding to how presumptive nominee Donald Trump has taken a more liberal position than Cruz on which bathrooms transgender individuals can use.
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http://www.thedailybeast.com/cheats...anguage-on-gop-platform.html?via=twitter_page


lol Cruz. LGBT Bathroom among top priorities. This fucking guy. This fucking party.

They really want to die on the hill of LGBT rights? It's pretty remarkable. I mean, is there anything so inconsequential to the people fighting against it in the history of the world (note: inconsequential to bigots, not victims). Why does this matter so much? It has no affect on their lives!

I continue to find this position so bizarre.
 
R

RustyNails

Member
JesseEwiak said:
Maybe the Illinois taxpayers shouldn't have spent the last 30 years believing they could have lots of services for not that many taxes? I'm sorry, but I'm sick and tired of that the only contracts that don't matter is those with unions.
Click to expand...
What do you mean? I believe everyone has a right to receive state services. We get all the services just like any other state. We have the largest property and sales tax in the fuckin country and we don't even have money to pay school teachers. Hell we even pay GARBAGE FEE for trucks to come haul our trash. What do you think we don't pay into? Unions are treated like blasphemy. I want every organization - private or otherwise, to be transparent and objective. If someone says you need to reform your Union laws, don't throw righteous indignation. Everything needs to be efficient and transparent.
 
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