Spending and Tax Cuts Are the Only Solution to the Deepening Global Recession By: Curtis Ophoven 6/10/2010 - 8 Comments As the U.S. GDP moves towards 100% in the next 18 months and is perhaps already at 130% if you include the unfunded liability of Freddie Mac and Fanny Mae, major cuts are inevitable. Your Ad Here Without a doubt, major austerity measures are coming to the U.S., which are likely to produce riots because of the massive amounts of social entitlements that have been promised over the past several decades.   The question that remains is will Obama begin to face the recession or will he try to keep printing money and avoiding the big cuts until after his term?  And if the conservative Republicans take control of the house and the senate in November as projected, they will most likely make the decision for Obama and start cutting government spending. Or perhaps the crafty politicians will find a way to begin cutting spending while convincing the public that they are instead trying to stimulating the economy?  Perhaps they will do this by passing a few new stimulus bills while passing deeper spending cuts at the same time. Here is an excellent video by Max Keiser about the subject: In the end, cutting spending is the only solution and the longer we wait to start cutting the deeper the cuts are going to be.  As a political leader in the U.K. put it, “spending cuts now, or poverty later.” If spending cuts are the solution and Democrats are incapable of cutting spending, then it doesn’t really matter what else they stand for, they are not electable as we are seeing in the primary elections.  Because of this, embolden Democrat voters will be unable to vote for either party in November causing the voter turnout to drop by as much as 15 percent. But then who will get the blame for the deepening recession and increase in unemployment that is sure to follow the spending cuts?  Will it be the leadership in Congress or the President?  Related Articles Here Comes the Free Market Calvary, Challenging the Political Regime in 2010 Sound the Alarm, Stagflation is Coming Seven Primary Causes of Tyranny and Why They Are Gaining Support: Part 5 Surviving the Global Financial Meltdown Steamrolled by Debt   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Li Says: on Friday, June 11, 2010 7:35:39 PM http://www.presstv.ir/detail.aspx?id=120258§ionid=3510213 China will come out smelling like a rose once we dump the dollar peg next year Comment 2 Mo Says: on Friday, June 11, 2010 7:53:18 PM New Northern Euro gold backed currency on the way: http://www.marketoracle.co.uk/Article19995.html Comment 3 Lauren Says: on Friday, June 11, 2010 7:56:16 PM http://www.telegraph.co.uk/finance/currency/7797396/Why-a-new-euro-could-be-the-saviour-of-the-European-dream.html Euro demise a forgone conclusion now. New Euro being printed? Comment 4 sally Says: on Wednesday, June 16, 2010 9:02:57 PM Face it, investments in renewable resources are going to pay off & create jobs as old auto factories are converted to solar panel manufactuing facilities. Lloyd's Of London Releases Major White Paper Report On Peak Energy... http://www.chathamhouse.org.uk/files/16720_0610_froggatt_lahn.pdf Conclusions. We can expect dramatic changes in the energy sector in the coming decades. This report encourages businesses, both in the energy sector and beyond, to look at how this will impact on their firms. The transition towards a lowcarbon economy and the interim volatility in traditional fossil fuel markets presents businesses with numerous risks but also opportunities. In order to reduce potential vulnerability and seize opportunities, business should be aware that: 1. Energy security is now inseparable from the transition to a low-carbon economy and businesses plans should prepare for this new reality. Security of supply and emissions reduction objectives should be addressed equally, as prioritising one over the other will increase the risk of stranded investments or requirements for expensive retro-fitting. 2. Traditional fossil fuel resources face serious supply constraints and an oil supply crunch is likely in the short-to-medium term with profound consequences for the way in which business functions today. Businesses would benefit from taking note of the impacts of the oil price spikes and shocks in 2008 and implementing the appropriate mitigation actions. A scenario planning approach may also help assess potential future outcomes and help inform strategic business decisions. 3. A ‘third industrial revolution’ in the energy sector presents huge opportunities but also brings new risks. Of particular importance for new technologies is the risk of constraints on raw materials such as rare earth metals, as scarcity may drive up costs. The rapid and widespread diffusion of some new technologies may also incur negative environmental implications. 4. Energy infrastructure will be increasingly vulnerable to unanticipated severe weather events caused by changing climate patterns leading to a greater frequency of brownouts and supply disruptions for business. This throws out a critical challenge to energy providers, investors and planners in terms of choosing the location of new infrastructure and fortifying existing plants and networks. Those businesses for which uninterrupted access to energy is of fundamental importance should actively consider investing in alternative energy supply systems. 5. Increasing energy costs as a result of reduced availability, higher global demand and carbon pricing are best tackled in the short term by changes in practices or via the use of technology to reduce energy consumption. The wider use of renewable energy and even self generation, bring added price and supply security benefits. 6. The sooner that businesses reassess global supply chains and just-in-time models, and increase the resilience of their logistics against energy supply disruptions, the better. The current system is increasingly vulnerable to disruption, given the trends outlined in this report. 7. While the vast majority of investment in the energy transition will come from the private sector, governments have an important role in delivering policies and measures that create the necessary investment conditions and incentives. If the global carbon market is to become a reality then government action must be taken to bring additional price stability and transparency. Investing in a secure, low-carbon energy future may have higher upfront costs, but will deliver lower cost energy in the future. Sound renewable energy and demand side measures are crucial elements in delivering the necessary energy services for businesses and the expected return on investments. http://www.doomers.us/forum2/index.php/topic,69677.msg1084959/boardseen.html#new Comment 5 FLORIDA IS GOING DOWN Says: on Wednesday, June 16, 2010 9:09:38 PM http://www.globalresearch.ca/index.php?context=va&aid=19575 "Informed emergency planning sources in Florida have informed WMR that the state faces severe fresh water shortages and power blackouts if the thick crude oil from the Deepwater Horizon disaster clogs sea water intakes at the largest seawater desalinisation plant in the United States -- the Tampa Bay Seawater Desalinisation Plant at Apollo Beach in Tampa, Florida. The plant, which uses seawater reverse osmosis to turn seawater into 16 to 19 million gallons of drinking water daily for residents of the Tampa Bay area, faces the threat of filtration membranes becoming clogged if oil from the Gulf of Mexico enters its intake pipes. Such an event would render the plant unable to process seawater, resulting in a major fresh water shortage for the Tampa Bay. Similarly, oil clogging the water cooling intakes at the Crystal River Nuclear Power Plant on the Gulf of Mexico coast, some 80 miles north of Tampa, could force the shutdown of the Unit 3 pressurized water nuclear reactor. Such an event would result in power shutdowns in the Florida areas served by the power plant. The Obama administration has taken a page from the government of Soviet leader Mikhail Gorbachev and Chernobyl in censoring the bad news from the Gulf oil mega-disaster. The Chernobyl cover-up largely resulted in the hastening of glasnost and the ultimate collapse of the Soviet Union." Wayne Madsen is a Washington, DC-based investigative journalist and nationally-distributed columnist. He is the editor and publisher of the Wayne Madsen Report(subscription required). Comment 6 steve Says: on Wednesday, June 16, 2010 9:13:09 PM Where are the tree huggers? Oh, bought off by the green-back $. http://www.financialsense.com/editorials/engdahl/2010/0610.html Yet there is a deafening silence from the very environmental organizations which ought to be at the barricades demanding that BP, the US Government and others act decisively. That deafening silence of leading green or ecology organizations such as Greenpeace, Nature Conservancy, Sierra Club and others may well be tied to a money trail that leads right back to the oil industry, notably to BP. Leading environmental organizations have gotten significant financial payoffs in recent years from BP in order that the oil company could remake itself with an “environment-friendly face,” as in “beyond petroleum” the company’s new branding. Comment 7 Lonestar Says: on Wednesday, June 16, 2010 9:16:17 PM Knee Jerk Regulation Will Be the Downfall of the USA. http://www.lifeaftertheoilcrash.net/Archives2010/KunstlerJune14.html "The future attempts to regulate undersea oil drilling will send many companies to do their thing in other parts of the world where nobody gives a sh** what you do offshore as long as you pony up the royalties to the grifters in charge onshore. America is going to lose a whole lot more of its own oil production. Smaller companies may shut down altogether from the cost of complying with new safety rules and an inability to get insurance. The oil from deep water in the Gulf of Mexico was how we hoped we would offset the ongoing depletions in Alaska. We're going to have to import even more oil than the two-thirds-plus we already depend on. One thing President Obama -- nor anyone else with an audience or a constituency -- will speak a word about is our massive, incessant purposeless motoring. Pretty soon, the oil missing from the Gulf will leave a message at the 7-Eleven stops in Dallas and Chattanooga, and before the year is out the cardboard signs that say "Out Of Gas" may hang on the pumps. A great hue and cry will rise out of the Nascar ovals and righteous lady politicians with decoupaged hair-doos will invoke the New World Order and the Book of Revelation in their rise to power. Reasonable men with moderate views will dither on the sidelines, afraid to offend one faction or another." Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

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