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	<title>Comments on: Testimony This Morning: Senate Budget Committee</title>
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	<description>What happened to the global economy and what we can do about it</description>
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		<title>By: Ethan C</title>
		<link>http://baselinescenario.com/2008/11/19/testimony-this-morning-senate-budget-committee/#comment-1352</link>
		<dc:creator><![CDATA[Ethan C]]></dc:creator>
		<pubDate>Thu, 20 Nov 2008 05:02:38 +0000</pubDate>
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		<description><![CDATA[From approximately 1985 through today, the Earth&#039;s population has increased by over 50%.  

Much economic theory is of the belief that as populations grow, they increase in productivity to a degree that allows all to live to some decent standard of living.

This is flawed reasoning due to the fact that the less intelligent and less educated reproduce in disproportionate numbers to those who subsidize their existence.

This will inevitably result in a situation such as that which we presently find ourselves in.

Those who could not provide sustenance for themselves depended on debt and government subsidies.  

Supply and demand may be fooled for sometime, but they will always find equilibrium.

I believe we violated Charles Darwin&#039;s law of Natural Selection to an excessive degree and that we now have a serious problem.  

We are stuck in a negative-feedback loop.]]></description>
		<content:encoded><![CDATA[<p>From approximately 1985 through today, the Earth&#8217;s population has increased by over 50%.  </p>
<p>Much economic theory is of the belief that as populations grow, they increase in productivity to a degree that allows all to live to some decent standard of living.</p>
<p>This is flawed reasoning due to the fact that the less intelligent and less educated reproduce in disproportionate numbers to those who subsidize their existence.</p>
<p>This will inevitably result in a situation such as that which we presently find ourselves in.</p>
<p>Those who could not provide sustenance for themselves depended on debt and government subsidies.  </p>
<p>Supply and demand may be fooled for sometime, but they will always find equilibrium.</p>
<p>I believe we violated Charles Darwin&#8217;s law of Natural Selection to an excessive degree and that we now have a serious problem.  </p>
<p>We are stuck in a negative-feedback loop.</p>
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		<title>By: Marco</title>
		<link>http://baselinescenario.com/2008/11/19/testimony-this-morning-senate-budget-committee/#comment-1336</link>
		<dc:creator><![CDATA[Marco]]></dc:creator>
		<pubDate>Wed, 19 Nov 2008 14:55:41 +0000</pubDate>
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		<description><![CDATA[I&#039;m not sure how a tax cut is going to have any immediate effects, unless you are proposing some sort of immediate rebate solution.  In that case, we know that those types of programs are usually used a short-term economic prop that only keeps the drop from happening so early.

3% seems like a massive amount of money to inject back into the system.  With the Federal Reserve and the Treasury printing and pumping over a trillion dollars back into the economy, we should already expect an inflationary wave to hit us in the next couple of years.  At this point, it seems like the markets are correcting themselves and we really just need to cradle the egg as it&#039;s falling instead of trying to stop it altogether.

You should also remember that the congress, senate, and all other budget-makers are not the finest group of financiers.  There is very little proof that we could see a federal &quot;smart&quot; spending program that does not get tied down with bureaucracy and waste.]]></description>
		<content:encoded><![CDATA[<p>I&#8217;m not sure how a tax cut is going to have any immediate effects, unless you are proposing some sort of immediate rebate solution.  In that case, we know that those types of programs are usually used a short-term economic prop that only keeps the drop from happening so early.</p>
<p>3% seems like a massive amount of money to inject back into the system.  With the Federal Reserve and the Treasury printing and pumping over a trillion dollars back into the economy, we should already expect an inflationary wave to hit us in the next couple of years.  At this point, it seems like the markets are correcting themselves and we really just need to cradle the egg as it&#8217;s falling instead of trying to stop it altogether.</p>
<p>You should also remember that the congress, senate, and all other budget-makers are not the finest group of financiers.  There is very little proof that we could see a federal &#8220;smart&#8221; spending program that does not get tied down with bureaucracy and waste.</p>
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