Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Mitch Daniels: Us Faces 'survival-Level' Economic Threat

Recommended Posts

http://news.bbc.co.uk/1/hi/programmes/newsnight/9079654.stm

Bear in mind that this chap worked for Bush.

Newsnight's Paul Mason meets Mitch Daniels, the Republican governor of Indiana who is tipped to challenge Barack Obama for the US presidency in 2012.

"America faces for the first time, other than the nuclear threat of a few decades ago, a genuine survival level issue," Mitch Daniels says.

"My reading of history is that there are points of no return, past which nations will not recover to anything like their previous strength."

It is apocalyptic language, and since Mr Daniels is widely regarded as having a decent chance of becoming the next US president, all the more alarming.

The threat the country is facing, according to Mr Daniels, is that of national bankruptcy.

Burdened by its $14tn debt, hemmed in by currency manipulation and trade rivalry, crippled - as Mr Daniels sees it - by a government whose size is sucking the lifeblood out of the economy - the US is, he believes, approaching a point of no return.

But towards what, I ask him, perennial decline?

"Decline might not be the right word. It might be very abrupt, very sudden. I am not predicting that but it cannot be excluded," he says. "My sense is that we'll have to do things in this country that the political smart money said you can't do."

The failure of the stimulus to re-start the US economy prompted Mr Daniels to issue a call for a new, very different type of stimulus last month - an $862bn cut in payroll tax, paid for by a federal wage freeze, a hiring freeze, a cut in federal spending and the withdrawal of some bank bailout funds.

"We can have the philosophical debate tomorrow," says Mr Daniels. "I happen to think [big government] is wrong - I think it leads to a diminution of freedom which is the idea around which America has always been organised.

"But I say to people, let's have the ideological debate another time - today it's the arithmetic that doesn't work.

"As we've found out from a searing experience, you can't run a family, you can't run a company, you can't run a government, even a government with the power to print money, at these debt levels that we have and are headed for, so we have to do dramatically different things."

Share this post


Link to post
Share on other sites

Gotta love the ole BBC value-free reporting - the prospect of a Mitch Daniels' presidency is "alarming" because he is pointing out how ******ed the US is. No wonder some call the BBC Pravda.

Curiously tonight the BBC got back into doing some serious investigative reporting. Of all the pressing matters the UK faces, Pravda decided to go with one of its obsessions...Lord Ashcroft.

Share this post


Link to post
Share on other sites
Guest The Relaxation Suite

Curiously tonight the BBC got back into doing some serious investigative reporting. Of all the pressing matters the UK faces, Pravda decided to go with one of its obsessions...Lord Ashcroft.

Ha! Well.... looks like they are getting their editorial on Daniels established early on so will be interesting to see how that develops if he progresses into the primaries. I love that the BBC seems to think it can be an influencing force in American elections.

Share this post


Link to post
Share on other sites

So far as I remember it as I experienced it at the time, this is the timeline of what happened in the USSR

1979 - Time of maximum Soviet Power

1986 - Indications of problems in the Soviet economy

1989 - Severe problems in the Soviet economy

1990 - Soviet economy on its knees

1991 - RIP USSR

Of course it will be completely different in the US because they were goodless commies and the US citizens are smarter than that.

Listen to the question

Edited by Della

Share this post


Link to post
Share on other sites
Gotta love the ole BBC value-free reporting - the prospect of a Mitch Daniels' presidency is "alarming" because he is pointing out how ******ed the US is. No wonder some call the BBC Pravda.

That not what the article says - it says the prediction is even more alarming because of who this guy is i.e. not some wingnut

Share this post


Link to post
Share on other sites

So far as I remember it as I experienced it at the time, this is the timeline of what happened in the USSR

1979 - Time of maximum Soviet Power

1986 - Indications of problems in the Soviet economy

1989 - Severe problems in the Soviet economy

1990 - Soviet economy on its knees

1991 - RIP USSR

Of course it will be completely different in the US because they were goodless commies and the US citizens are smarter than that.

Listen to the question

Good point.....

I put 2006 as the time of Maximum US Power...... ;)

etc

Edited by skomer

Share this post


Link to post
Share on other sites

Good point.....

I put 2006 as the time of Maximum US Power...... ;)

etc

I'd say 'Indications of problems in the US economy' was the 2007 credit crunch.

Are they at severe yet?

After watching that [probably biased] money masters video that someone posted recently, I'm impressed that past US presidents have removed the central bank to create a debtless dollar. There are also some state banks that issue dollars without debt backing ( State Bank of Dakota ). Maybe they could solve the US debt like that.

Edited by SomethingHasToGive

Share this post


Link to post
Share on other sites

So far as I remember it as I experienced it at the time, this is the timeline of what happened in the USSR

1979 - Time of maximum Soviet Power

1986 - Indications of problems in the Soviet economy

1989 - Severe problems in the Soviet economy

1990 - Soviet economy on its knees

1991 - RIP USSR

I would argue slightly differently ..

1969 - was the time of maximum soviet power (in reality)

1976 - was the time that the death spiral of the soviet economy started (paradoxically the best time to be living in the Soviet union, however this standard of living could only be maintained with loans from overseas )

1979 - was the time of maximum apparent soviet power ..

1986 - Glasnost .. the moment the Soviet system was liberalised it was doomed to end .. there is no such thing as a liberal totalitarian system ..

1987-1990 the true state of the soviet ecomomy is revealed for the world to see ..

1990-1998 Period of even worse corruption than under the Soviet system (which was hard for sure) leading to eventual default on external debts ..

Share this post


Link to post
Share on other sites

Gotta love the ole BBC value-free reporting - the prospect of a Mitch Daniels' presidency is "alarming" because he is pointing out how ******ed the US is. No wonder some call the BBC Pravda.

The anti-BBC nonsense on this website is really, really starting to get to me.

It is apocalyptic language, and since Mr Daniels is widely regarded as having a decent chance of becoming the next US president, all the more alarming.

What they are saying is that it's alarming because it's not a crackpot making this remark, but a potential president. It is the gravity of the comments, not Mr Daniels' potential presidency, that is being reported as alarming.

I like this website as a place to get genuine economic debate, and tips on buying houses. If HPC is just a forum to bash Labour, the BBC, baby boomers, BTL owners or any other collective that the HPC groupthink has focussed upon, this website is serving no purpose other than to let off steam. :angry:

(And for the record, I don't work for the BBC, don't vote Labour, am in my thirties and don't own any property)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.