PeakTrader.com

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PeakTrader:

This deep, and long, depression is completely unnecessary. We needed more pro-growth policies and fewer anti-growth policies.

One anti-growth policy is in energy, including maintaining expensive environmental standards, imposing new and higher standards, sharply reducing domestic coal production, preventing more oil production in the Gulf of Mexico, California, Alaska, etc..

Putting the economy back on track should’ve been the top priority, to generate much more tax revenue, along with much less spending on the unemployed, to be able to afford environmental standards and energy technology.

Instead, we’ve had one foot on the accelerator and the other foot on the brake, resulting in an expensive “recovery,” that’s making the masses poorer.

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Government spending, including defense spending, raises GDP.

I think, we needed bold tax cuts, to pay-down household debt (including high interest rate credit card debt), which would’ve lowered monthly payments, to raise discretionary income, strengthened the banking system, and raised private consumption, rather than the small and slow tax cuts, which seemed to put a floor on the economy rather than jolting the economy into a self-sustaining cycle of consumption-employment (where consumption generates employment and employment generates consumption, etc.).

Low prices and low interest rates over the “long boom,” from 1982-07, induced demand resulting in a build-up of household debt. Strong demand was maintained through lower prices and lower interest rates causing diminishing marginal utility (or the opposite of pent-up demand).

The recession was inevitable. However, it could’ve been shallow, or the recovery stronger. Large tax cuts were desperately needed to strengthen household balance sheets and allow the spending to go on.

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When you’re unemployed, you don’t drive to and from work:

http://www.advisorperspectives.com/dshort/updates/DOT-Miles-Driven.php

And, for their next job, many of the unemployed will work for lower pay and closer to home, than their prior job.

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Also, many Americans kept their jobs, got promotions or better jobs, and/or raises.

The U.S. economy creates and destroys many jobs:

“In 2010, the latest full year available, employers made over 47 million hires, and there were over 46 million job separations. Of the latter, there were 21.3 million voluntary departures (quits), and 21.2 million separations.

This happened in a labor force of 154 million…about 30 percent of all jobs turn over in a year, and the labor market in the United States is in a constant state of flux. That’s one of the strengths of the American economy, although those separated involuntarily might not see it that way.”

(From Real Clear Markets 1/19/12)

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Yes, I look forward to the day when one worker produces the output of 100 workers to raise living standards and free-up the other 99 workers to produce more goods & services for the masses.

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PeakTrader:

Why were sanctions on Russia necessary?

Because Obama drew a line in the sand that Syria crossed, and while Obama fiddled, Putin took control.

History repeats itself, like Nero followed Claudius, Obama followed Bush.

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2slugbaits says: “…why did Putin invade and annex the Crimea?”

To maintain its status as a regional and world power.

Why Crimea is so important to Russia
March 18, 2014

“In 2008 the Ukrainians said they would not renew the lease when it expired in 2017. But they buckled under the pressure of a gas-price hike and, in 2010, extended the Russian navy’s lease until 2042.

Sevastopol (in Crimea) has been an important hub to project Russia’s naval power on a global platform. The Black Sea Fleet has seen a flurry of activity since 2008: during the war with Georgia that year, the fleet staged blockades in the Black Sea. The Russian navy was actively engaged with Vietnam, Syria and Venezuela (and up until March 2011, Libya) “for logistics and repair services in their principal ports”. It has also been alleged that Sevastopol has served as the main source in supplying the Assad regime during Syria’s civil war and proved useful with Russia’s role in dismantling Syria’s chemical weapons last year.

After Syria’s civil war forced Russia to stop using its naval base in the Syrian port of Tartus last year, Sevastopol became even more crucial.”

http://gulfnews.com/news/world/usa/why-crimea-is-so-important-to-russia-1.1305604

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Although, the new lease expires in 2042, Putin saw an opportunity, since the U.S. is pulling-back and limiting its options.

However, the U.S. should prevent or deter crises rather than react to them.

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2slugbaits, Russia gained territory and influence.

It’s a setback to the U.S. after winning the Cold War.

And, would Texas been better off remaining part of Mexico or Spain?

Giving Texas away to Mexico is like giving away the dreamhouse you spent decades building to a stranger on the street.

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Of course, Texas may not be your dreamhouse. However, should we hold people’s tastes against them?

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