César Fernández-Stoll

César Fernández-Stoll
Versión hispana

Saturday, June 25, 2011

S&P: Investors could lose $100 billion if US credit is downgraded - The Hill's On The Money

The problem is not S&P and it is not just one or another potential 'victim' should the budget force a credit downgrading.
The problem is how the finances are administered. Expenditures need to be cut to the minimum, not just because there never will be enough money to accommodate them, but because they are all fake, all illusions of very bad economics. Like the sub-prime mortgages that pretended that a family earning $10,000 a year could ever pay a $200,000 mortgage.

Raising taxes is not a solution either because the economy will be strangled beyond what it is already and people will not have any cash to make businesses prosper and let them bring prosperity to the country. Taxes can only be applied, directly or indirectly to the people.
There are no such things are taxes on corporations or taxes on businesses or on environmental hazards or this or that, only the people and that includes taxing the rich over and above what the government decides a rich person is.
The only solution is reduction on government and to stick to a limited government formula, letting the people decide what is good and what is bad and to let the market free as well as the people. It is really so sad that so much needs to be said about something that should really be a no brainer.
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