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| "We are broke" — James Baker (763281) | |
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"We are broke" — James Baker |
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Posted by David Fairthorne on Sun Apr 10 15:26:05 2011 Source: http://www.livedash.com/transcript/fareed_zakaria_gps/49/CNN/Sunday_April_10_2011/581391/.Fareed Zakaria interviews former Treasury Secretary and former Secretary of State James Baker This part of the interview dealt with the national debt. See the above source for the complete interview. 00:25:09 >>> And we are back with james baker, who was ronald reagan's chief of staff, secretary of the bush's secretary of state. 00:25:18 When you watch what's going on in washington, the partisan divide seems as great as ever, the inability to work together seems great. 00:25:27 Sometimes they manage a deal, sometimes they don't. 00:25:29 But there's an enormous amount of partisan wrangling. 00:25:33 Is there a way out of this? 00:25:38 >> Well, I think ultimately there's a way out of it, yes. 00:25:44 It's too bad, our politics have gotten quite ugly since I was up there. 00:25:47 When I was up there with ford, reagan and bush one, you could reach across the aisle and be a political adversary but not a political enemy. 00:25:59 Today, too much has led to a zero-sum game. 00:26:02 That's really regrettable and unfortunate. 00:26:04 There are a number of causes for it that we don't need to go into here, I suppose. 00:26:11 It's too bad because we used to be able to do the people's business. 00:26:13 And it's getting harder and harder to do that. 00:26:18 Then you have the 2012 budget. 00:26:20 That's the big enchilada. 00:26:25 Then you have to debt limit coming up. 00:26:26 When I was treasury secretary, you had to work, work, work, even 25 years ago to make sure we could get the debt limit going and the government could keep functioning and honoring our debts to people and wouldn't have to default. 00:26:39 Both of those are coming up. 00:26:40 Those are going to make this battle look like nothing. 00:26:43 >> What do you think the republicans should do on the debt limit? 00:26:48 >> Well, it -- at some point we've got to get a handle on this spending binge we're on. 00:26:55 The united states of america, if we didn't have the dollar as the de facto reserve currency of the world we'd be greece. 00:27:03 I mean, we are broke, bankrupt, really bankrupt. 00:27:07 We're going to have debt to gdp over the next five years of over 100%. 00:27:11 That is not sustainable. 00:27:13 Now, you've got to take care of that. 00:27:15 How do you take care of that? 00:27:17 You've got to do it by cutting spending with respect to which there is no political will on the part of either party, not just a democratic problem but also a republican problem. 00:27:27 Primarily a democratic problem, I need to say. 00:27:31 Or raising -- and/or raising revenues. 00:27:33 You need to do both. 00:27:34 Both have to be on the table. 00:27:35 We have to get a handle on that. 00:27:38 One way to bring a lot of attention to the problem is to not keep increasing, keep giving ourselves a new credit card every time we run out of money. 00:27:54 That's one real way to -- >> you were sect secretary of the treasury. 00:28:02 And tim geithner says to not raise the debt ceiling would send the signal that we're a republic. 00:28:06 >> It will send a signal. 00:28:07 That's what I used to argue. 00:28:08 I believe that. 00:28:08 But at some point we have to stop this profligate spending spree we're on. 00:28:15 We're in big, big trouble. 00:28:16 The biggest challenge facing the united states today is not what's happening in the arab world. 00:28:23 It's not what's happening with respect to iran's search for a nuclear weapon or anything else. 00:28:27 It's not our wars in iraq and afghanistan. 00:28:30 It's our debt bomb. 00:28:31 We are broke. 00:28:33 You cannot be -- you cannot be powerful militarily, diplomatically or politically unless you're powerful economically. 00:28:41 The source of america's strength has been its economy. 00:28:45 Our economy now is in the tank. 00:28:46 And it's just not acceptable. 00:28:48 We have got to find a way to deal with this. 00:28:56 It's the number one problem facing the country. 00:28:59 That's why i, frankly, was disappointed that the obama administration didn't come with a budget proposal that dealt with this continuing growth of entitlement. 00:29:08 We have to deal with that. 00:29:10 Somehow we have to find the political will to deal with that. 00:29:14 >> Do you think president obama has led enough on this issue? 00:29:17 >> I would like to have seen him be more forceful in saying yes, we're going to take care --we're going to confront these problems. 00:29:29 I would have liked to have seen that. 00:29:31 Let me tell you a couple of things that could be done that don't solve the debt problem. 00:29:34 One would be to do tax reform. 00:29:35 I was in washington before the joint committee on taxation. 00:29:40 Chairman max baucus and senate on ways and means. 00:29:48 I said the stars are aligned just like they were when ronald reagan last reformed the tax code, 25 years ago in 1986. 00:29:53 That tax code has grown again into an abomination, the america people hate it. 00:29:57 It's too complicated. 00:30:00 They can't understand it. 00:30:01 You have to pay lawyers and accountants a lot of money. 00:30:08 We have to simplify it, eliminate preferences and deductions. 00:30:11 Fortunately today we have two chairmen of the tax writing committees in the congress who would like to see that happen. 00:30:18 It's not going to happen without presidential leadership. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 15:30:50 2011, in response to "We are broke" — James Baker, posted by David Fairthorne on Sun Apr 10 15:26:05 2011. Does this mean that tax cuts for the rich will be allowed to expire? |
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Re: ''We are broke'' — James Baker |
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Posted by salaamallah@hotmail.com on Sun Apr 10 16:12:03 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 15:30:50 2011. the rich dont pay tax |
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Re: ''We are broke'' — James Baker |
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Posted by David Fairthorne on Sun Apr 10 16:20:29 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 15:30:50 2011. Does this mean that tax cuts for the rich will be allowed to expire?I hope so. But this is such a big problem that no single measure is likely to solve it. Something must be done about the so-called entitlements (medicare and social security), which will only get more expensive with the aging of the population. Also all subsidies and tax exemptions should be considered for elimination. In my opinion the Simpson and Bowles draft proposal is a good bipartisan starting point. See http://en.wikipedia.org/wiki/National_Commission_on_Fiscal_Responsibility_and_Reform. |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 16:22:52 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 15:30:50 2011. what tax cuts for the rich? can you list a few? I'm sure quite a few people earling $250,000 a year would disagree with you. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 16:37:12 2011, in response to Re: ''We are broke'' — James Baker, posted by David Fairthorne on Sun Apr 10 16:20:29 2011. None of the deficit comes from SS and Medicare. They are self funding through dedicated sources that are mostly in balance.The SS Trust Fund is just like any other debt that gets repaid. Not doing so is a default. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 16:39:34 2011, in response to Re: ''We are broke'' — James Baker, posted by LuchAAA on Sun Apr 10 16:22:52 2011. People earning $250,000 wouldn't have their tax cuts expire. |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 16:42:30 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 16:39:34 2011. But the NY "Millionaire's Tax" kicks in at $200,000 for singles and $300,000 for couples. That's at least $700,000 off from "Millionaire".I ask you b/c this is about to expire in June. |
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Re: ''We are broke'' — James Baker |
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Posted by David Fairthorne on Sun Apr 10 16:46:39 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 16:37:12 2011. None of the deficit comes from SS and Medicare. They are self funding through dedicated sources that are mostly in balance.That may be true in a narrow accounting sense. But how does that solve the problem of more retired people making claims on these entitlements and fewer people making contributions? The balance must come from somewhere, and if nothing is done it will continue to be added to the national debt. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 16:47:04 2011, in response to Re: ''We are broke'' — James Baker, posted by LuchAAA on Sun Apr 10 16:42:30 2011. That tax needs to expire. The crisis is over.It's how things should be done. Had other states done it, they wouldn't be in the mess they are. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 16:49:24 2011, in response to Re: ''We are broke'' — James Baker, posted by David Fairthorne on Sun Apr 10 16:46:39 2011. The same way people who buy regular government bonds make their claims when it's time for the government to repay.The government pays the principal and interest in the times and amounts agreed to. |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 16:49:59 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 16:47:04 2011. I know that the unions in NY are very vocal about making sure the tax does not expire. They have said so many times. |
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Re: ''We are broke'' — James Baker |
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Posted by David Fairthorne on Sun Apr 10 17:13:50 2011, in response to Re: ''We are broke'' — James Baker, posted by SMAZ on Sun Apr 10 16:49:24 2011. The government pays the principal and interest in the times and amounts agreed to.Quite so. And if nothing changes, more and more debt will be needed, and interest on the debt will amount to an ever increasing fraction of government expenditure. If the trend continues unchecked, there will be eventually be no revenue left over to pay for anything else, such as the military. |
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Re: ''We are broke'' — James Baker |
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Posted by Dutchrailnut on Sun Apr 10 17:16:41 2011, in response to Re: ''We are broke'' — James Baker, posted by LuchAAA on Sun Apr 10 16:42:30 2011. Now how come in Repuke language a teacher making $74 000 is breaking the economy, but a single repuke making $200 000 is barely at middle income ???What gives dude .... |
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Re: ''We are broke'' — James Baker |
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Posted by Dutchrailnut on Sun Apr 10 17:18:43 2011, in response to Re: ''We are broke'' — James Baker, posted by David Fairthorne on Sun Apr 10 17:13:50 2011. Talk about military, the budget cuts resulted in a 38 billion savings.but war in Iraq and FarawayIstan is around 118 billion per budget cycle ?? What gives Dude .............. |
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Re: ''We are broke'' — James Baker |
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Posted by SMAZ on Sun Apr 10 17:21:04 2011, in response to Re: ''We are broke'' — James Baker, posted by David Fairthorne on Sun Apr 10 17:13:50 2011. Gently raising the caps on income above the base is more than enough to preclude the government from taking on new debt in order to finance the drawing down of the Trust Fund which starts out very slowly. |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 17:21:28 2011, in response to Re: ''We are broke'' — James Baker, posted by Dutchrailnut on Sun Apr 10 17:16:41 2011. Who said that? |
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Re: ''We are broke'' — James Baker |
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Posted by Dutchrailnut on Sun Apr 10 17:25:22 2011, in response to Re: ''We are broke'' — James Baker, posted by Dutchrailnut on Sun Apr 10 17:16:41 2011. Fox News angle ? |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 17:54:34 2011, in response to Re: ''We are broke'' — James Baker, posted by Dutchrailnut on Sun Apr 10 17:25:22 2011. why are you talking to yourself? |
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Re: ''We are broke'' — James Baker |
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Posted by Dutchrailnut on Sun Apr 10 18:17:09 2011, in response to Re: ''We are broke'' — James Baker, posted by LuchAAA on Sun Apr 10 17:54:34 2011. hmm you do all time ?? |
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Re: ''We are broke'' — James Baker |
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Posted by LuchAAA on Sun Apr 10 18:22:52 2011, in response to Re: ''We are broke'' — James Baker, posted by Dutchrailnut on Sun Apr 10 18:17:09 2011. you responded to yourself with something about Fox News? who were you talking to?Fox News has nothing to do with the "millionaires tax" in NY. |
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Re: ''We are broke'' — James Baker |
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Posted by bingbong on Sun Apr 10 18:42:43 2011, in response to "We are broke" — James Baker, posted by David Fairthorne on Sun Apr 10 15:26:05 2011. Time to raise taxes. Start with those who received the most in taxcuts over the past 10ish years, then go down to income scale. Everyone should pay more, how much should depend on their income. When the economy improves (and it will if they add some incentives for ROI on domestic investment) and we reach or near surplus. DO NOT CUT TAXES AGAIN.Anybody gonna learn? This isn't anything abstract or old, yunno. It wasn't that long since this intelligent, proven economic policy was successfully enacted. |
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Re: ''We are broke'' — James Baker |
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Posted by David Fairthorne on Tue Apr 12 21:42:25 2011, in response to "We are broke" — James Baker, posted by David Fairthorne on Sun Apr 10 15:26:05 2011. See also http://www.ft.com/cms/s/0/9852ec86-620d-11e0-8ee4-00144feab49a,dwp_uuid=8085b954-4bd2-11e0-9705-00144feab49a.html?ftcamp=traffic/email/regsnl//memmkt/#axzz1JMZNy4A3. |
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Re: ''We are broke'' — James Baker |
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Posted by salaamallah@hotmail.com on Tue Apr 12 21:43:33 2011, in response to "We are broke" — James Baker, posted by David Fairthorne on Sun Apr 10 15:26:05 2011. theres plenty of money - cut the defense budget !lol |
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Re: ''We are broke'' — James Baker |
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Posted by David Fairthorne on Tue Apr 12 22:10:44 2011, in response to Re: ''We are broke'' — James Baker, posted by salaamallah@hotmail.com on Tue Apr 12 21:43:33 2011. theres plenty of money - cut the defense budget !That would be a great help. America can no longer afford to police the whole world. The Iraq war is a war of choice, as Iraq was never a threat to America. The Afghan war can never be won, and it only remains a safe haven for Al Qaeda so long as the troops are there. I don't see the troops staying there forever. Besides the mission seems to have changed to nation building, and Al Qaeda has other safe havens in Yemen and Somalia. It said that there are 100 Al Qaeda in Afghanistan, and the U.S. and allies have 100,000 troops there at a cost of $1 million a year per troop. That's $100 billion a year to fight 100 Al Qaeda, or $1 billion a year to fight just one member of Al Qaeda. |
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Re: ''We are broke'' — James Baker |
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Posted by salaamallah@hotmail.com on Tue Apr 12 22:11:14 2011, in response to Re: ''We are broke'' — James Baker, posted by David Fairthorne on Tue Apr 12 22:10:44 2011. IAWTP ! |
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