C’mon guys let’s not resort to the typical Democratic response of personal attacks.
Next thing I’ll hear that Ted Koppel has found a guy in North Vietnam that confirms that John Kerry knows more about economics than George Bush.

Anyone have any strong facts for me? Yes, the 1st Bush increased spending because of a Demo controlled House and Senate. The President doesn’t control the pork barrel, he can only attempt to shape public opinion to push thru his programs. Reagan did this masterfully, Bush Sr. did not. Do you actually believe the President is responsible for recessions (or the economy on the whole) instead of the Fed Reserve.

The fact is the George Bush II tried to reform Social Security and was stonewalled.
Yes, we do spend more on defense than we did in the Carter days, but this can be argued to have created the fall of the Soviet Union (at least speeding the process) and thus weakening Communism throughout the world. Defense spending, like all government spending does have a positive effect on the economy (and I do not work in the defense industry nor do I approve of their rampant overcharging).

Yes, spending of all types increases debt and puts pressure on U.S. interest rates. But, can you name an economy in the world today that comes close to matching the safety and consistent growth of the United States? There is a reason foreigners buy out debt and it is not out of the goodness of their hearts.

Fact: The Pimco plan wants to put main control of the economy with the legislature and executive branches.

Fact: Dropping rates to 0% significantly reduces the cost of money, will drop the value of the dollar much more and significantly would increase inflation. If rates drop to 0%, where is the incentive to lend money to anyone? I will borrow money all day long at 0%, but who is going to give it to me; the Government (subsidy?).

Fact: Pimco’s plan calls for Congress to co-operate with each other and reduce spending.
Does anyone believe this is possible?
Most representatives are more worried about keeping their jobs than doing what is right.
And Dems and Repubs are at each others throats flinging “koolaid” comments back and forth instead of working together as Americans. Term limits might work, but could create an even poorer talent pool than we have to put up with now. Until the incentive for Congress is to tackle the tough problems and have the knowledge to reach intelligent solutions, we are spinning our wheels.

Fact: Increasing taxes certainly will slow down the economy and have an effect in decreasing inflation, but this is a blunt instrument that can only be adjusted once a year, and will have no effect on market shocks (9/11 etc.). Also, unquestionably, higher taxes reduces the incentive to work (hard), and reduces the payoff to create and invent.

So, I am looking at an economy where no one will lend to me, except possibly the government, and I will have less incentive to work, create and invent, and we will put Congress, with their lack on econmic/financial knowledge in charge of the whole thing. I don’t care what Party you belong to, that plan is a muddled mess.

Now we can finger point, argue about defense spending levels, argue about the war in Iraq, and even debate how Ted Koppel was able to find an ex-North Vietnamese soldier that somehow saw and recalls John Kerry valiantly fighting in Vietnam.

But someone stick to the point and discuss the facts about the economic plan proposed by Pimco.

Are my facts off/wrong?

Cough, hack! Step back from the koolaid dispenser, dood!

http://angrybear.blogspot.com/2007/09/ranking-presidents-fiscal.html

The Fed does not care about the fluctuations of the value of the dollar, except as it affects U.S. inflation.
The value of the dollar is affected by world market demand and speculation.

As U.S. interest rates fall, all other things remaining unchanged, the value of the dollar will also fall. But this is the equilibrium of the markets. Generally as the dollar falls, the cost of foreign goods in U.S. markets increases, potentially aggravating inflation upward and putting upward pressure on interest rates.

As for foreign investors pulling out of the United States; where are they going to put their money? The euro has vaulted to new highs, but is there really any confidence in the long run in the economies of Europe, which have been plagued with nagging inflation, slow growth, lack of innovation and market inefficiencies. Would you have confidence in buying the euro at today’s levels? The markets in China have seen a huge influx of capital that may continue for years, but the govt. there is still not enamored with free market systems, and there will be growing pains.
The free-market economy of the U.S. has been the most resilient and consistent in the world. This has great value to long-term investors (not speculators) who value consistent growth and an accomodating government. I would venture to say that now is the perfect time to buy the dollar, at its low point and with everyone stating that the sky is ready to fall.
There are signs of regional weakness in the U.S. economy, but no signs of any looming recession. The Fed has lowered rates to calm market fears of a debilitating credit crunch due to the problems in the sub-prime mortgage market.
The fears will subside. The housing market will work thru its problems. The dollar will strengthen and the U.S. economy will continue to grow at envious levels.
The American economy is unquestionably the most efficient in the world. Although the dollar has lost a bit of its allure, it is still king of the hill.