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Obama - I told you so


primetime

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Here is one tax cut idea Obama is floating. Like I knew was going to be the case, I will not be eligible. What a surprise.

But in talking about his economic recovery package, Obama has mentioned his campaign promise to offer a "net tax cut" for "95% of American workers."

One option that could get Obama a good way toward that 95% is his proposed Making Work Pay credit -- a centerpiece promise in his campaign. The credit would essentially work as a payroll tax credit equal to $500 for individuals and $1,000 for couples.

The credit would have an income threshold. Only those making $75,000 or less ($150,000 or less for couples) would get the full credit. Individuals making between $75,000 and $85,000 (and couples making between $150,000 and $170,000) would get a partial credit.

The credit also would be refundable, meaning that even tax filers without any tax liability

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Here is one tax cut idea Obama is floating. Like I knew was going to be the case, I will not be eligible. What a surprise.

But in talking about his economic recovery package, Obama has mentioned his campaign promise to offer a "net tax cut" for "95% of American workers."

One option that could get Obama a good way toward that 95% is his proposed Making Work Pay credit -- a centerpiece promise in his campaign. The credit would essentially work as a payroll tax credit equal to $500 for individuals and $1,000 for couples.

The credit would have an income threshold. Only those making $75,000 or less ($150,000 or less for couples) would get the full credit. Individuals making between $75,000 and $85,000 (and couples making between $150,000 and $170,000) would get a partial credit.

The credit also would be refundable, meaning that even tax filers without any tax liability

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think it is a bit early for comments like 'I told you so' when he hasn't even taken over yet!!! And considering he is taking over in middle of a world recession, there will be some tough decisions ahead. But he can't make more of a mess than the Republicans have for the last 8 years...

So at least wait a year or two to see what actually DOES happen, rather than dwelling in the land of 'might be's'

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Politicians have always got promises and pull a White Dove from the hat like a magician

But on the other hand hidden away is a solution for regaining the promise of $$$$.

Who will pay it?

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I believe...that money has to come from somewhere....

Well..the U.S. government has a $ 200 billion program presented to stimulate the economic...

and when the U.S. Treasury says it will invest $700 billion to support the banking system....

it has to be able to issue $700 billion in Treasury bonds.

Someone has to buy those bonds and someone has to think they're a good investment...

at a time when most people don't think anything is a good investment...

The treasury's effort to restore confidence in banks depends on people having confidence in the treasury.

So,when the Federal Reserve says....

it will invest $500 billion in the commercial paper to support the short term financing market..

yes,it has to print the money...People have to think that money's worth something,

even though it's been freshly printed for the occasion.

For the Fed to restore confidence by making money available..

people have to have confidence in money...if people lose confidence in money..then it's all over.

Money is all the rescuers have...

When the money itself loses value, there's no one to rescue the rescuers...

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But these two things are closely related.

A treasury bond is an iron clad commitment to pay interest every six months..

and to pay the face amount at maturity..to pay in the form of money..that's it.

It's a riskless security..coz the government has the power to print the money required to make the payments. But if the money is worthless... then the bonds are worthless,too!

So what if the oil price drops by 50%?

If the governments of the world print enough money, that drop won't last long.

Neither will the recent drops in other commodities...

That's the way inflation works...it's the way it always works.

Governments print too much money and the price of everything goes up..that's a inflation.

It will happen slowly..a little bit at a time.

We have plenty of time to see it, and avoid the worst.

But we see it later than we should.Then we see the first signs..the second..and we ignore them.

Yeah..we always do.

Then it will get worse, and finally we react.

But hopefully..that day will come before inflation gets so out of control

that we really do have a crisis on our hands.

Anyway..i really believe ..in the future..soon or later..

there is a deflation in the whole world!

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