Judge Andrew Napolitano and Glenn Beck discuss the state of affairs in the United States today in this video. Among the topics is the test facing the newly elected Republicans. The interesting part of this is whether they will stop the nation’s debt ceiling from again rising. Beck says that the consequences of not raising the debt limit would be to, in essence, destroy the economy. The complete implosion of our economy is going to happen some time. Beck indicates that this could be the trigger to that collapse much like the Smoot-Hawley Tariff Act precipitated the Great Depression. Contrary to this position if the United States does not do something about the continuous flood of cheap imported goods into this country, our economy will continue its downward spiral. Increase tariffs, decrease taxes, and those that want to sell here would be encouraged to manufacture the products here. However, it is true that not raising the debt ceiling could trigger the collapse. What should be done is to cut spending, so we do not need to raise the debt ceiling.
Tough times are ahead. If the debt ceiling is again raised, it will just happen later.
Discussion in the video is also about how the Federal Reserve will help bail out the European economies. Since the FED is not part of the government and is private, it has be ability to do this although they are highly influenced by our government. Have not hear this one before, but it sounds feasible in today’s world even though the US does not have any money to bail anyone out.
Four methods to reduce debt:
1. Default
2. Raise taxes
3. Reduce spending
4. Print money
The only legitimate method is to reduce spending. However, the United States and most other countries have not been able to find the will to do this. Defaulting causes instant disaster, raising taxes can only get you so much, and printing money causes inflation. Stop spending and start making products in this country again. This is the answer to our economic problems.
Tough times are ahead. If the debt ceiling is again raised, it will just happen later.
Discussion in the video is also about how the Federal Reserve will help bail out the European economies. Since the FED is not part of the government and is private, it has be ability to do this although they are highly influenced by our government. Have not hear this one before, but it sounds feasible in today’s world even though the US does not have any money to bail anyone out.
Four methods to reduce debt:
1. Default
2. Raise taxes
3. Reduce spending
4. Print money
The only legitimate method is to reduce spending. However, the United States and most other countries have not been able to find the will to do this. Defaulting causes instant disaster, raising taxes can only get you so much, and printing money causes inflation. Stop spending and start making products in this country again. This is the answer to our economic problems.
