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The meaning of "Austerity"

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Good video.

 

But when investors do not want to buy a government's bonds and governments spend more each month than they collect in taxes there are not many options left. How do they pay their employee's salaries at the end of the month?

 

Take a look at this video and see what happens when governments refuse to balance their books

 

 

 

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Why do you like it?

 

He obscures truth, by trading in half-truths and stirring up emotions.

I did not learn anything from it, and was briefly confused by it.

 

He is talking about: People rising up against "financial oligarchs" and refusing to pay fraudulent debts.

But whom are these debts really owed to? How were they created?

 

Those governments that overspent on by borrowing money instead of taxing their people can

hardly exit from their problems by continuing to overspend, as he seems to want.

 

Austerity is really nothing more than an END TO THE OVERSPENDING.

Does he offer a practical alternative? I think not.

 

I reckon he is "living in someone else's pocket", and wants to stay there.

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Why do you like it?

 

It obscures truth, by trading in half-truths and stirring up emotions.

I did not learn anything from it, and was briefly confused by it.

 

He is talking about: People rising up against "financial oligarchs" and refusing to pay fraudulent debts.

But whom are these debts really owed to? How were they created?

 

Those governments that overspent on by borrowing money instead of taxing their people can

hardly exit from their problems by continuing to overspend, as he seems to want.

 

Austerity is really nothing more than an END TO THE OVERSPENDING.

Does he offer a practical alternative? I think not.

 

I reckon he is "living in someone else's pocket", and wants to stay there.

I think he is only telling the latter half of the story rather than look at the reasons why we are all in debt. However this viewpoint will gather steam as people are only bothered with the here and now, or the immediate future, not the past.

 

You say the UK (among others) should look to Iceland as a prototype for the future. Well the Icelanders have simply rejected paying back loans for a debt they perceive not to be 'theirs'. What the consequences of this are I have no idea. But it probably won't be pretty. Maybe the Greeks will follow, and the Spainiards, Portuguese, Italians, Belgians, Brits etc...

 

 

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the Icelanders have simply rejected paying back loans for a debt they perceive not to be 'theirs'.

 

Seems not:

 

http://eng.forsaetisraduneyti.is/news-and-articles/nr/4288

 

Our task in Iceland in the last 18 months has been simple: to find out what happened, to clean up the mess and make sure that such an economic disaster never strikes again.

 

The solution isn't to be found in isolationism or denial.

 

With this in mind, Iceland has applied to join the European Union. Hopefully that application will be formally accepted this summer by the European Council. EU membership would reinforce the foundation that Iceland's economic recovery is built on.

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He is talking about: People rising up against "financial oligarchs" and refusing to pay fraudulent debts.

But whom are these debts really owed to? How were they created?

 

mostly created by statist elites lining their own pockets.

 

Those governments that overspent on by borrowing money instead of taxing their people can

hardly exit from their problems by continuing to overspend, as he seems to want

 

can't see why taxing people (extortion) is any better, tbh.

 

Austerity is really nothing more than an END TO THE OVERSPENDING.

Does he offer a practical alternative? I think not.

 

repudiate the debt.

 

I reckon he is "living in someone else's pocket", and wants to stay there.

 

lame personal attack.

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Seems not:

 

http://eng.forsaetisraduneyti.is/news-and-articles/nr/4288

 

Our task in Iceland in the last 18 months has been simple: to find out what happened, to clean up the mess and make sure that such an economic disaster never strikes again.

 

The solution isn't to be found in isolationism or denial.

 

With this in mind, Iceland has applied to join the European Union. Hopefully that application will be formally accepted this summer by the European Council. EU membership would reinforce the foundation that Iceland's economic recovery is built on.

 

Seems not to be in keeping with it's citizens wishes though. Been following a few iceland blogs, mainly watching life after the crisis. In doing so noticed they have often commented on around 60-70% of the people being against EU membership.

 

Be interesting how the wider icelandic public take to this.

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mostly created by statist elites lining their own pockets.

can't see why taxing people (extortion) is any better, tbh.

No one FORCED those who bought overpriced asset at the top, to take mortgages.

Many state unions went on strike for higher wages, even when the state could not afford it.

 

Why should innocent taxpayers be forced to cover for these mistakes?

The better way is to: Cut state spending, cut state pensions, renegotiate some debts.

 

In short: SHARE the pain, rather than asking the taxpayer to cover it all

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No one FORCED those who bought overpriced asset at the top, to take mortgages.

 

but that state has FORCED people to bail them out and bail out the banks that made these ridiculous mortgages. that's the problem. FORCE.

 

Many state unions went on strike for higher wages, even when the state could not afford it.

 

stikes are a non-violent means of negotiation. no FORCE.

 

Why should innocent taxpayers be forced to cover for these mistakes?

 

innocent people shouldn't be taxed at all.

 

In short: SHARE the pain, rather than asking the taxpayer to cover it all

 

'asking' :lol:

 

I think you'll find the taxman is a tad firmer than just asking when it comes to getting money out of people!

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'asking' :lol:

I think you'll find the taxman is a tad firmer than just asking when it comes to getting money out of people!

Which is why some folks (& some businesses) are leaving the country

 

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Globalisation and Cheap Credit helped to bring Western economies into their present mess.

Cheap imports, and widely available credit... combined with little spending discipline, were a sweet path to empoverishment

 

Nice video I came across on Zero Hedge, the first 14min are great:

 

From: http://www.youtube.com/watch?v=http://video.google.com/videoplay?docid=5064665078176641728&ei=2s4yS-jdGoH0qwOtmujIDg&q=charlie+rose+interview+James+Goldsmith&hl=en&view=3&client=firefox-a#

 

An interview from 1994 in which James Goldsmith claimed that globalisation would wipe out the Western middle class through wage arbitrage with countries like China and India. Very interesting to hear arguments ringing so true 16 years later.

 

My personal view is that the wage arbitrage was more or less inevitable if market forces were pointed in that direction, but what should naturally have accompanied it was deflation of the cost of living (especially the price of land) in the West. Falling Western wages are much less of a problem if the Western cost of living is being allowed to fall too. Unfortunately Western central bankers prevented this by pumping trillions in credit into their economies, so workers were able to continue spending despite stagnant and falling real wages. Now the economy has hit the wall because the gap between wages and the cost of living in the West has grown too wide and the accumulated debt has become unpayable. What we need is deflation, and lots of it, ASAP.

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or the next best thing a tax on everyone such as the carbon tax

 

people will withdraw their services to the free/black market though

 

My impression is that the man-made global warming scam is not being pushed much on the media at the moment - anyone have any ideas why this could be?

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- So, the no. of public servants will be reduced by 490,000.

- Her Majesty will get 14% less.

- Aircraft carriers will be bought without aircrafts.

- Ministries will have to spend 25% less.

- GBP 80 Billion will be cut.

 

This is all great, BUT:

 

- "Britain posted the largest budget deficit for any September since modern records began in 1993 ..."

- "Britain had a deficit of 11.1 percent of gross domestic product in the fiscal year through March, the highest since World War II. "

- "That leaves the government on course to meet the Office for Budget Responsibility’s full-year forecast of 149 billion pounds [for the deficit]. "

- And remind me again, how large is the RBS/HBoS problem alone?

 

This is so harsh already (especially the carriers without planes), AND STILL those savings would just halve the deficit, not to mention the hidden liabilities. This is so bad, it is unbelievable. The pensions MUST be next.

 

Real austerity is when debt gets paid back. LONG, LONG way from here.

 

 

http://www.bloomberg.com/news/2010-10-20/u...nes-budget.html

 

http://www.spiegel.de/wirtschaft/soziales/...,724236,00.html

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http://www.telegraph.co.uk/finance/comment...the-bottle.html

The problem is that UK austerity, so far at least, is a myth.

 

November's national accounts, released last week, were shocking. Government spending last month was sharply up on the same month in 2009 – yes, up! British state borrowing is still escalating, with the national debt rising very quickly.

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It's impossible for words to describe what is necessary to those who do not know what austerity means. Austerity. Austerity has a face and you must make a friend of austerity. Austerity and fiscal tightening are your friends. If they are not, then they are enemies to be feared. They are truly enemies.

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My impression is that the man-made global warming scam is not being pushed much on the media at the moment - anyone have any ideas why this could be?

Quite the opposite. New aviation and shipping taxes are on their way but very few know or bother

 

Keith Allott, head of climate change at WWF-UK, said:

<skip>

"Governments backed a new global "green fund". The UK needs to drive this forward by backing new sources of finance, such as levies on international aviation and shipping."

http://www.independent.co.uk/environment/c...nt-2157688.html

They never stop trying innit :P

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People like this agitate me. I can't stand people complaining and expecting for the world to solve problems around them.

No just complain to the world about people who agitate you and this somehow seems to solve your problem.

 

It is the wealth producing sector not governments that will ultimately have to foot the bill for the world's financial problems.

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:lol: :lol: :lol: :lol:

 

What the heck are these Nobel dudes smoking??

 

http://www.bloomberg.com/news/2011-02-02/s...h-slowdown.html

Stiglitz Says Europe Faces `Disastrous' Budget Austerity Drive

....

Many European countries are pursuing “excessive austerity,” risking a marked slowdown in economic growth, Nobel Prize-winning economist Joseph Stiglitz said.

 

“There’s this disastrous policy that even in the countries that don’t need to have austerity,” such as the U.K., they “are going for much more excessive austerity than they need,” he said at an investor conference in Moscow today.

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Good luck with austerity in Britain!

 

http://www.telegraph.co.uk/news/politics/c...ury-chairs.html

Expenses watchdog 'spent £300,000 on luxury chairs'

 

The new watchdog in charge of policing MPs’ expenses spent £300,000 of taxpayers’ money furnishing its offices including hundreds of pounds on luxury chairs.

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