FDXLAG

Here you go Ben, please turn on the camera when you read it, a little head exploding video would be a nice change of pace from all the beheadings.

A Permanent Family Crisis | National Review Online

bedrock

Oh, you are right, and that's why not ONE bank was prosecuted for fraud. But, if you recall, we used to have the Glass-Steagal Act which seperated investment banking from retail banking. It kept the greedy from getting their hands on people's savings for their schemes. It also limited leveraged investing, which becomes rampant speculation. This all came into being as a result of the last time speculators were allowed to run wild in the 1920's. The banks tried for years to dismantle the restrictions of Glass-Steagall, starting with Carter and finally fully succeeded under Clinton and gained further assistance from Bush when he dismantled the watchdog office of the SEC: The Office of Thrift Supervision.

bedrock

I would say that Glass-Steagall prevented a lot of the excesses. The crucial importance of that regulation was not well taught in universities and the public really forgot about it. I think the tax and monetary policy are the effect rather than the cause of our problems. Massive spending on Vietnam and the space program combined with the introduction of the Great Society programs of LBJ, led to overspending and inflationary pressures. This caused certain countries to lose faith in the US ability to pay gold for dollars. The Nixon administration recognized this, and removed the gold standard.

Under Reagan, politicians discovered they could get away with deficit spending. The paranoia of the Cold War (understandable given the Cuban Missile Crisis and Berlin Wall creation) also contributed greatly to massive unsustainable defense spending. Add globalization and NAFTA and the outcome is what we have now---which was predicted by some prescient people.

jungle

You need to check your numbers, NASA and Vietnam were a drop in the bucket compared to more recent excesses.

Take a look at the actual budget one day. Military is a big ticket item, but third down the list by a long way.

A better question may be to ask what we get as a country from any particular program. A little cost/benefit analysis would go a long way, this is starting to happen in many countries now, we aren't far behind.
Cuts are coming not because of politics, but because of pure economic shortfall.

bedrock

NASA and Vietnam and the Great Society is what started the problem, because they caused inflation which made it difficult to stay on the gold standard. Once you no longer have anything tangible to back your currency, you have fiat currency, of which I am sure you are aware. I have little faith in "govt. cuts" as they always seem to mean less of an increase in spending than we originally proposed.

Thedude

Have a good close look at why we went of the gold standard. Hint...it had a lot to do with the Bank of England.